Understanding the monthly UIF compliance process

Understanding the monthly UIF compliance process

Business, Human Resources

Ensuring UIF compliance can be difficult. These challenges are exacerbated by the antiquated technical infrastructure and systemic challenges at the Department of Employment and Labour. Here, we give some pointers on things to be aware of and think about; and on issues to consider to comply with current legislation.

The UIF cycle

  1. Creation of declaration files: After each payroll cycle, our payroll software generates a comprehensive declaration file. This contains vital information about every employee on your payroll, including contributions for the month and other statutory details mandated by the Department of Labour (DOL).
  2. Timely submission: It is imperative that these declaration files are submitted to the Declarations department before the 7th of the subsequent month, in accordance with legislation.
  3. Uploading to EDEC: The submitted files are then uploaded by UIF to the Electronic Declarations (EDEC) system, the platform designated by the DOL for processing.
  4. Content alignment: These files should mirror the information provided to your payroll team, ensuring accuracy and consistency.
  5. Data transmission: The information within these files should also then align with the totals for payment extracted for SARS. It also provides the necessary details for the UIF to allocate credits accurately.
  6. DOL handling: Once provided to the UIF, the data is in the hands of the DOL. Unfortunately, we cannot control the timing or method of their uploads.
  7. Notification and confirmation: We have systems in place to receive notifications and proofs of acceptance from the DOL. Any errors are promptly addressed and filed for reference.
  8. Continuous efforts: In cases of delays or gaps, we proactively re-extract and resend the files.

Note: despite best endeavours, there are often system inconsistencies which result in error messages from UIF. These are usually related to unusual situations e.g. employees on maternity, paternity or disability.

uFiling challenges and resolutions

UFiling is the online platform for submitting and controlling UIF information and is distinct and not connected to EDEC. Despite its potential, uFiling presents the following challenges:

  • File size limitations: uFiling fails when handling bulk declarations, creating manual data entry challenges. The system also struggles to load bigger employers in time to such an extent larger employers cannot log in.
  • Integration issues: Handshakes between uFiling and EDEC are not seamless, hindering the process flow.
  • Multi-user setbacks: Collaborative usage is hindered due to functionality limitations.

The Payroll Authors Group of South Africa (PAGSA) has tabled these challenges with the DOL on a regular basis and there has been mention of a whole system upgrade. To date though, there has been no movement on this issue.

Moving forward

As a member of PAGSA we will communicate any news that we receive on this issue. In the interim we will make every effort to ensure that the current legislation and processes are adhered to.

For more information around our UIF services contact us on [email protected].