{"id":68698,"date":"2020-05-13T09:00:27","date_gmt":"2020-05-13T07:00:27","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=68698"},"modified":"2026-01-29T15:52:59","modified_gmt":"2026-01-29T13:52:59","slug":"payroll-qa-your-questions-answered-about-covid-19-relief-options-for-businesses","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/payroll-qa-your-questions-answered-about-covid-19-relief-options-for-businesses\/","title":{"rendered":"Payroll Q&A: Your questions answered about COVID-19 relief options for businesses"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tCompliance<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tPayroll Q&A: Your questions answered about COVID-19 relief options for businesses\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"Rob\t\t\t\tRob Cooper<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

Most South African small and medium businesses are struggling to operate and pay their employees during the national lockdown imposed by the government to slow the spread of the coronavirus. Rob Cooper, chairman of the Payroll Authors Group of South Africa, and host of the Sage Annual Payroll Tax Seminar<\/strong> led a recent webinar about how employers can navigate tax, labour and payroll regulations around COVID-19.<\/a><\/p>\n\n\n\n

He looks at some of the most common questions businesses are asking about the impact of COVID-19 on their payrolls.<\/p>\n\n\n\n

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  1. Which UIF option is best for COVID-19 claims: The Reduced Working Time Benefit or the Temporary Employer\/Employee Relief System (TERS)? <\/strong><\/h3>
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    The Reduced Working Time benefit<\/strong> was made effective from 1 January 2019 and provides cover for employees who lose income due to reduced working time, despite remaining in employment. They can qualify for a benefit of between 38% and 60% of the UIF Income Replacement Rate.<\/p>\n\n\n\n

    The TERS<\/strong> is a measure introduced in response to the pandemic and national lockdown. TERS provides emergency relief to enable the employer to pay employees when it temporarily pauses their employment as a result of ceasing operations during the lockdown. <\/mark>For TERS, the benefit is capped at R17 712 per month per employee, once again applied at between 38% and 60% of the UIF Income Replacement Rate.<\/p>\n\n\n\n

    In both cases, the reduced remuneration rate per day is multiplied by credit days (for the Reduced Working benefit), or by the number of days claimed (for the TERS benefit).<\/p>\n\n\n\n

    \u2018Credit days\u2019 for the Reduced Working Time are calculated at a rate of one credit day for every four calendar days in a contribution month. Once the credit days are converted into a benefit, those credit days are no longer available for later UIF benefit claims.<\/p>\n\n\n\n

    The TERS benefit will pay out a minimum of R 3 500 for a month.  This floor does not apply to Reduced Working Time benefits. As such, TERS is a far better option for lockdown UIF claims.<\/p>\n\n\n\n

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    1. Does the Compensation Fund offer relief for employees who die or are disabled as a result of contracting COVID-19 in the course of their work? <\/strong><\/h3>
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      Employers can claim from the Compensation Fund for employees who have contracted COVID-19 at work. For the claim to be valid, it needs to pass the following tests:<\/p>\n\n\n\n