Yes UIF is payable on a bonus. My question is, when paying an annual bonus, do I calculate UIF as if the bonus is a separate month, or is it considered to be part of the same month and therefore subject to the monthly limit.It’s actually a good question.
Let me answer it this way (which should prevent me from leading you astray).
I use ufiling for filing my monthly UIF returns.
When I pay my annual bonus, I declare the taxable income (minus UIF applicable exclusions, of course – see this page on UIF for more details) for that month, and a number of staff end up crossing the UIF leviable earnings ceiling (monthly value).
Ufiling applies the monthly UIF ceiling limit, and does not appear to “annualise” the effect of the bonus either in the month the bonus is declared, or in the periods that follow.
So effectively, uFiling recognises the bonus (and the fact that it has resulted in leviable income crossing the earnings ceiling) in the month the bonus is declared.
More Information on UIF
- Can I claim UIF online?
- Check UIF Status
- What is the maximum UIF payment?
- When can you claim UIF?
- Can I claim UIF if I resigned?
- Who must pay UIF?
- How long does UIF take to pay out after signing?
- Does UIF pay lump sum?
- Do directors pay UIF?
- Why is my UIF claim rejected?
- Can I claim UIF if I retire South Africa?
- Are you allowed to resign with immediate effect?
- Can I claim UIF if my husband died?
- How much UIF will I receive?
- Is UIF taxable?
- Is UIF calculated on gross or basic salary?
- How long does maternity benefit take to process?
- How many months does UIF pay for maternity leave?
- How is UIF calculated?
- What happens to my UIF contributions if I resign?
- What forms are needed to claim UIF?
- How do I register for UIF?
- What is the retirement age in South Africa?
- Does UIF expire?
- Is UIF calculated before or after tax?
- Is UIF paid on overtime?
- Does bonus have UIF?
- When should I apply for maternity pay?
- How does maternity leave pay work?
- Can I claim UIF after 2 years?