There is a general misconception in the industry that when you are registered at SARS for UIF, which every payroll client should be, you are automatically registered for UIF.
Not so, as the Unemployment Insurance Fund (UIF) does the payout for South Africans that are unemployed and SARS collects the funds on behalf of the UIF.
SARS' system does not update the UIF system automatically, therefore every employer must inform the UIF of every staff member that is employed and dismissed/retrenched.
This information is furnished to the UIF via a UI-19 form that must be furnished to the fund once any changes happen for whatever reason to the employer's staff component.
At Taxrek, when we administer the payroll process directly for our payroll clients, we will know of any changes made to the staff component as the employer preapproves the payslips and EMP201.
This allows our payroll administration staff to inform the UIF of any changes that might have transpired within our client's payroll portfolio.
All employers must be registered with the UIF and all staff members employed by them must be reflected on the UIF system or else a retrenched staff member would not be able to claim from the UIF when they are unemployed.