Claiming For Financial Relief

We are going through stressful and unprecedented times, with our financial futures being uncertain and mostly out of our control. Please be aware that we are available to assist you wherever we can and have advice on claiming for financial relief during this time. We have been trying to keep up to date with all the claims and grants that are available for businesses and employees. We will keep you up to date as to what is available and the appropriate mechanisms for applying for the assistance. We will endeavour to provide you with credible, current information and to keep it as simple as possible.

 

CLAIMING FROM THE UIF

If you have reduced the working hours of your employees or have temporarily laid off employees, there is a process available to submit a claim with the UIF. The following forms are required for claiming, and can be obtained off the UIF website:

  • UI2.1 application form
  • UI19 and UI2.7 to be completed by employee
  • UI2.8 to be completed by bank
  • Letter from employer confirming shutdown or temporary layoff of staff due to Covid-19
  • Copy of employee/s Identity Document (I.D.)

 

These need to be submitted to the UIF processing centre. Should one of your employees become ill due to the Covid-19 virus, there is a different process to follow. Please feel free to contact us and we will tell you which forms need to be filled in should an employee fall ill.

 

CLAIMING FROM THE DISASTER BENEFIT FUND

If an employer is necessitated to suspend operations, do temporary layoffs and cannot pay employees during this period, a claim is available. The benefit is a flat rate equal to the minimum wage of R3500 per employee for the duration of the shutdown or for a maximum of three months. The below information needs to be submitted to the UIF processing centre.

Forms to be filled in by the employer:

  • UI2.1 application form
  • UI19 and UI2.7 to be completed by employee
  • UI2.8 to be completed by bank
  • Letter from employer confirming shutdown or temporary layoff of staff due to Covid-19
  • Copy of employee/s Identity Document (I.D.)

 

CLAIMING FROM THE TEMPORARY EMPLOYEE RELIEF SCHEME (TERS)

 

This claim is for cases where an employer had to cease operations for 3 months or less and suffers financial distress. The emphasis is on closing and ceasing operation, and suffering financial distress. The payout is paid to the employer and must be paid out to the employees within 5 days of receipt. It should take 30 days from approval.

You will need to request application forms from the Department of Labour by emailing covid19ters@labour.gov.za. Submissions are to be made to Covid19uif@labour.gov.za

The required information is as follows:

  • A Letter of Authority on the official company letterhead indicating the individual to lodge a claim on behalf of the company.
  • Memorandum of agreement
  • Spreadsheet that is prescribed with the information required
  • 3 months payroll
  • Certified letter from the bank

 

CLAIMING FROM THE COMPENSATION FUND

A claim can be made should any of your employees contract Covid-19 when taking official business trips, or from working in their official place of work. A reliable diagnosis is required and this claim is not available should an employee contract the virus during the shutdown and while being at home. I do not envisage many clients needing more information on this claim, but please feel free to contact us and we will assist you or point you in the right direction.

 

TAX RELIEF

Small- or medium-size entities with a turnover of less than R50 million and are tax-compliant may apply for the following tax relief:

PAYE

  • Only pay 80% of PAYE liabilities for the next four months (1 April 2020 – 31 August 2020).
  • The remaining 20% is to be settled in equal installments over six months from 7 September 2020.

PROVISIONAL TAX:

  • First provisional tax is to be based on 15% of the estimated tax liability.
  • Second provisional tax is to be based on 65% of the estimated total tax liability.
  • Third portion is to settle the amount outstanding.

 

CLAIMING AN ETI BENEFIT

An ETI benefit claim can be submitted and the following is available:

  • R1500 for current eligible employees earning less than R6500 per month for the first year and for the second year, and an additional R500 totaling R1000 for employees aged 18 – 29.
  • R500 for all previously ineligible employees aged 18 – 65 earning less than R6500 per month.

 

SUKUMA COVID-19 RELIEF FUND

The applications have closed for applicants seeking relief from the fund created by Johann Rupert due to over-subscription. If additional funding is made available and the fund is re-opened, I will let you know.

I have tried to keep this explanation of what is available as simple as possible. Please feel free to contact us should you require additional information.

 

Regards,

Keith Eave

 

Contact Eave on info@eavecapital.co.za for competent and consistent support in your everyday business.

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