UIF Submissions: Why Payroll Accuracy Matters More Than Ever for Employers

Author: Karen van den Bergh and Jonathan Aitken

In December, members and associates of the Payroll Authors Group met with UIF representatives to discuss ongoing challenges in payroll submissions and to clarify UIF’s expectations of employers and payroll providers.

What emerged clearly from these discussions is that UIF compliance is no longer a purely administrative task. For employers, payroll accuracy and timing directly affect employee trust, claims outcomes, and reputational risk.

Below we summarise the key takeaways and why they matter for employers who process payroll in South Africa.

1. UIF Submissions: Two Methods in Theory, One in Practice

At present, there are theoretically two ways for employers to submit UIF declaration data:

1. eDec submissions, generated from payroll systems and emailed monthly in the prescribed format
2. uFiling, the UIF’s online portal

In practice, uFiling is not currently functioning reliably for employer submissions and is not suitable for payroll-level reporting at scale. UIF has confirmed that employers whose payroll systems generate eDec files should submit via eDec and refrain from using uFiling for monthly declarations.

As a result, email submission of eDec files is currently the only viable method for ongoing employer compliance.

For employers using a payroll bureau, this places significant responsibility on the provider to:

• Generate technically correct files
• Submit consistently and on time
• Retain proof of submission

For HRTorQue clients, UIF declarations are submitted monthly as part of payroll processing, and submission evidence is retained on the employer’s behalf.

2. What Data an eDec Submission Must Contain

UIF eDec files are not simple summaries. They are data-heavy statutory declarations, and omissions or inaccuracies frequently cause claim delays or rejections.

An eDec file must correctly contain, at a minimum:

• Employee identity details (ID number or passport number)
• Employment start date
• Termination date (where applicable)
• UIF remuneration values
• Employee and employer UIF contributions
• Reason for termination
• Employer registration and contact details

This is why payroll teams often need to follow up repeatedly for:

• Missing or incorrect ID numbers
• Confirmation of termination reasons
• Clarification of final employment dates

From UIF’s perspective, payroll systems and payroll bureaus are treated as trusted data sources. Errors in these files are assumed to reflect employer non-compliance, even where the root cause is missing or late information.

Accuracy at payroll stage is therefore critical.

3. Why UIF Submissions Matter: The Employee Claim Fallout

The most visible impact of UIF errors arises when an employee tries to claim UIF benefits. If UIF records are incomplete or inconsistent, employees are commonly told that their employer has not submitted correctly. This often leads to:

• Employee frustration and distress
• Breakdown in goodwill at termination
• Reputational damage to the employer
• Escalation of disputes long after employment has ended

In many cases, contributions were paid correctly, but declaration data does not align with UIF records. Unfortunately, the employee experiences the consequences directly and often blames the employer.

4. Termination Timing: A Payroll Reality UIF Doesn’t Fully Accommodate

One of the most complex payroll challenges is the misalignment between payroll cut-off dates and actual termination dates.

For example:

• Payroll closes on the 23rd
• An employee’s last working day is the 30th
• The termination date is unknown when payroll is processed and the eDec file is generated

UIF has stated that they do not want employees included in declarations for months in which they are not paid. However, from a payroll perspective, this is difficult to manage where termination details are finalised after payroll cut-off.

This creates unavoidable risk:

• Excluding the employee may result in no termination record
• Including the employee may reflect incomplete information at submission time

This is a systemic limitation, not poor payroll practice.

5. Correcting Terminations: Why Amended Returns Are High-Risk

Submitting a separate or amended UIF return to correct one employee’s termination may appear logical, but it carries real risk.

Historically, UIF has:

• Overwritten entire declaration periods
• Deleted data for other employees when replacement files were submitted

As a result, fixing one employee can unintentionally break compliance for many others if a replacement file is not complete and accurate.

Any corrective submission must therefore:

• Include all employee data for the period
• Be carefully reviewed
• Be handled by payroll specialists familiar with UIF system behaviour

6. Post-Termination Payments: An Ongoing Compliance Grey Area

UIF does not expect declarations for employees after the termination month. However, post-termination payments such as leave pay or overtime are often processed in the following payroll.

These payments can:

• Trigger additional UIF records
• Create discrepancies when employees later claim
• Result in UIF queries and document requests

Unfortunately, this issue cannot be fully avoided under the current UIF framework.

7. Employer Responsibility: UIF Forms Employees Must Receive

Even where payroll submissions are correct, employees cannot successfully claim UIF without the required documentation. Employers are responsible for providing employees with:

• UI-53 (Record of Employment)
• UI-2.11 (Employer Declaration)
• UI-2.7 (Remuneration Schedule)
• Salary Schedules (often required to support earnings history)

Failure to issue these documents promptly:

• Delays employee claims
• Creates the perception of employer non-compliance
• Often results in employees returning to HR or payroll long after termination

Providing these documents at termination is one of the most effective ways employers can reduce post-employment disputes and UIF escalation. Our HR teams can help with this.

8. Large-Scale Terminations and Compliance Status

For mass retrenchments or large-scale exits:

• UIF may deploy on-site teams if notified in advance
• Early engagement improves claim outcomes and reduces employer exposure

The UIF compliance certificate system remains suspended. Employers requiring confirmation of compliance should request written confirmation directly from UIF and retain it for records.

Final Thought: Payroll Accuracy Is Risk Management

UIF compliance sits at the intersection of payroll systems, statutory reporting, timing constraints, and human impact. While the UIF system remains imperfect, employers are still judged on outcomes.

Working with a payroll specialist who:

• Understands eDec data requirements
• Manages termination timing risk
• Controls amendment exposure
• Ensures employees receive correct UIF documentation

is not optional, it is a core element of employer risk management. Give us a call today for help with your payroll and HR.