Page 233 - Juta's Indirect Tax

s 4 UNEMPLOYMENT INSURANCE CONTRIBUTIONS ACT 4 OF 2002 s 8
(f) any member of a municipal council, a traditional leader,amemberofaprovincialHouseofTraditional Leaders and a member of the Council of Traditional Leaders.
[Para. (f) added by s. 144 (1) (c) of Act 24 of 2011 (date of commencement deemed to have been 1 April 2002) and by s. 152 (1) (c) of Act 22 of 2012 – date of commencement also deemed to have been 1 April 2002.]
(2) ...
[Sub-s. (2) deleted by s. 208 (1) (b) of Act 45 of 2003.]
CHAPTER 2
DUTY TO CONTRIBUTE AND RECOVERY OF CONTRIBUTIONS
(ss 5-15)
5 Duty to contribute to Fund
(1) Every employer and every employee to whom this Act applies must, on a monthly basis, contribute to the Unemployment Insurance Fund.
(2) The contributions must be paid by the employer either to the Commissioner in terms of section 8 or to the Unemployment Insurance Commissioner in terms of section 9, whichever is applicable to the particular employer.
6 Determination of contribution
(1) Subject to subsection (2), the amount of the contribution payable in terms of section 5—
(a) by an employee, must be one per cent of the
remuneration paid or payable to that employee by his
or her employer during any month; and
(b) by an employer in respect of any one of its employees, must be equal to one per cent of the remuneration paid or payable by that employer to that employee
during any month.
(2) Subsection (1) does not apply to so much of
the remuneration paid or payable by an employer to an employee during any month as exceeds an amount determined from time to time by the Minister of Finance by notice in the Gazette,* after consultation with the Minister of Labour and the Unemployment Insurance Commissioner.
7 Employer must deduct employee’s contribution
(1) Subject to subsection (2), an employer must, on
a monthly basis, deduct or withhold the amount of the employee’s contribution contemplated in section 6 (1) (a) from the remuneration paid or payable to that employee during that month.
(2) Where the remuneration of the employee is paid at intervals other than on a monthly basis, the employer must deduct the amount of the employee’s contributions on such other basis as coincides with the intervals of payment of remuneration by the employer to the employee.
(3) When making a deduction in terms of subsection (1) or (2), an employer may not—
(a) deduct amounts that are in excess of the amount of
the contribution due by the employee;
(b) seek or receive a fee from the employee for complying
with this Act; or
(c) deduct arrear contributions from the employee after
the end of the nancial year during which it was payable.
(4) Subject to subsection (3) (c), where the employer fails to deduct the contribution as contemplated in subsection (1) or (2), the employer is liable for such contributions.
(4A) Where an amount of an employee’s contribution which has been deducted or withheld by an employer which is a company (other than a listed company) in terms of this section has not been paid over to the Commissioner or the Unemployment Insurance Commissioner, as the case may be, the representative employer and every director and shareholder of that company who controls or is regularly involved in the management of the company’s overall nancial affairs shall be personally liable for the payment of that amount to the Commissioner or the Unemployment Insurance Commissioner and for any penalty contemplated in section 13 (2) which may be imposed in respect of that payment.
[Sub-s. (4A) inserted by s. 209 (1) of Act 45 of 2003.]
(5) If any payment made by the employer to the Commissioner or the Unemployment Insurance Commis- sioner in terms of section 8 or 9, as the case may be, includes an amount which was deducted or withheld in terms of subsection (1) or (2), and it subsequently becomes known to the employer that the payment made by the employer was not due or payable in terms of this Act, or was in excess of the amount due or payable, the employer must refund to the employee such amount or excess amount, as the case may be, as has been deducted or withheld and overpaid by the employer, despite the amount not having been refunded to the employer by the Commissioner or the Unemployment Insurance Commissioner, as the case may be.
8 Payment of contribution to Commissioner and refund
(1) Every employer, other than an employer contemplated in section 9 (1), must on a monthly basis pay the amount of all employees’ contributions and the employer’s contributions in respect of every employee in the employment of that employer to the Commissioner not later than seven days, or such longer period as the Commissioner may determine, after the end of the month in respect of which the contributions are payable.
(1A) Notwithstanding the provisions of subsection (1), if an employer is a micro business that is registered in terms of the Sixth Schedule to the Income Tax Act, the employer may pay the amount as described in subsection (1) to the Commissioner within the periods prescribed in paragraph 11 (4A) of the Sixth Schedule to that Act.
[Sub-s. (1A) inserted by s. 24 (1) (a) of Act 39 of 2013
– date of commencement: 1 March 2014; the insertion applies iro tax periods commencing on or after that date.]
(2) An employer must, together with the payment referred to in subsection (1) or (1A), submit a return to the Commissioner.
[Sub-s. (2) substituted by s. 271 of Act 28 of 2011 and by s. 24 (1) (b) of Act 39 of 2013 – date of commencement: 1 March 2014; the substitution applies iro tax periods commencing on or after that date.]
(2A) Every employer shall—
(a) by such date or dates as prescribed by the
Commissioner by notice in the Gazette; and
(b) if during any such period the employer ceases to carry on any business or other undertaking in respect of which the employer has paid or becomes liable to pay
* R14 872 with effect from 1 October 2012 – GN 783 in GG 35715 of 26 September 2012
Juta’s IndIrect tax 2016 225
UNEMPLOYMENT INSURANCE CONTRIBUTIONS ACT