Answer to a question from a reader

I employ private carers. How do I pay their UIF?

The short answer

If you are registered as an employer, your UIF is paid via SARS. Otherwise, you will need to pay directly to the UIF.

The whole question

Dear Athalie

I employ private carers for my husband. After reading your answer to a reader's query on paying UIF for their domestic worker, I assumed that the same applies in my case. As an employer, do I need to submit this information on my personal tax return every year? 

The long answer

If you are employing the carers in your personal capacity, rather than through a company, you would not be required to register as an employer. However, if you are registered as an employer for tax purposes, you would have to pay the UIF contributions over to SARS.

In that case, you as the employer would have to submit a Monthly Employer Declaration (EMP201) to SARS. This is a payment declaration in which you declare the total payment together with the amounts deducted for PAYE and UIF. A unique payment reference number (PRN) is pre-populated on the EMP201 form which links the actual payment to the declaration. 

You would also need to indicate the Employee Tax Certificates IRP5/IT3(a)s to be issued. The IRP5/IT3(a) certificates show the total amount earned by the employees and the total deductions, and are issued for the year from 1 March to 28/29 February.

If, however, you are not registered as an employer, you would need to pay the UIF contributions directly to the UIF. The contribution of 2% of their wages (1% contributed by them and 1% by you) must be paid monthly to the UIF for all domestic workers working more than 24 hours a month.

You would need to register yourself with the Labour Department to receive a contributor number, which you would use to make payments to the UIF. The carers would then be registered as your employees, as beneficiaries under your contributor number.

You are also required to provide the carers with a payment slip every month showing the hours worked, wage rate, any deductions and any overtime pay. 

Each carer (for legal purposes regarded as a domestic worker) is also required to have a signed employment contract, which should contain the following information:

  • The full name and address of the employer

  • The full name and occupation of the employee, and a description of the work they will be doing

  • The place of work

  • The date of employment

  • The domestic worker’s ordinary hours and days of work

  • The domestic worker’s wage or rate and method and frequency of payment

  • The rate of pay for overtime work

  • Any other cash payments that the employee is entitled to

  • Any deductions taken from wages

  • The leave they are entitled to

  • The notice period required to terminate employment, or the date of termination if the employment is for a specific period only.

  • If they will be monitored using video footage or nanny cams

Wishing you the best,

Answered on Feb. 9, 2021, 3:40 p.m.

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Please note. We are not lawyers or financial advisors. We do our best to make the answers accurate, but we cannot accept any legal liability if there are errors.