Unemployment Insurance Fund still nightmare for most businesses

SOUTH AFRICA. – Since lockdown has been introduced in April, one of the greatest challenges for entrepreneurs was the survival of their business.

When Pres Cyril Ramaphosa declared that the UIF was ready to assist employees during the Covid 19 crisis, most employers, as well as employees, breathed a sigh of relief.  

However, many businesses and/or employers have been largely frustrated by the implementation of the system – or rather, the lack thereof.

A further complication is that the system does not allow for support. Admittedly, one can send an email to Covid19TersSupport@labour.gov.za, or one can phone a help desk on 0800 030 007. In both cases, though, FiND iT’s attempts were unsuccessful. 

According to Piet Nel, tax project leader of SAICA, most delays with payments occur when applicants fill out the wrong information, claim too much money, or simply do not follow correct administrative procedures.

Moreover, most employees are apparently not aware of the fact that, even though their business may well pay out their personnel’s benefits, they themselves still need to register with UIF as well.  

The only reason for claims not being paid out, is the lack of registration or of the necessary payments to the Fund.

Be that as it may, in many cases the process itself remains a huge frustration.

Applications for May 2020 has not yet been opened up – ostensibly due to the bottle-neck with which the Fund presently struggles.

For most businesses this frustration could entail the end of their existence.

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