Does bonus have UIF?

By | September 2, 2021

Yes UIF is payable on a bonus. My question is, when paying an annual bonus, do I calculate UIF as if the bonus is a separate month, or is it considered to be part of the same month and therefore subject to the monthly limit.It’s actually a good question.

Let me answer it this way (which should prevent me from leading you astray).

I use ufiling for filing my monthly UIF returns.
When I pay my annual bonus, I declare the taxable income (minus UIF applicable exclusions, of course – see this page on UIF for more details) for that month, and a number of staff end up crossing the UIF leviable earnings ceiling (monthly value).
Ufiling applies the monthly UIF ceiling limit, and does not appear to “annualise” the effect of the bonus either in the month the bonus is declared, or in the periods that follow.

So effectively, uFiling recognises the bonus (and the fact that it has resulted in leviable income crossing the earnings ceiling) in the month the bonus is declared.

More Information on UIF

See also  Is UIF taxable?

Leave a Reply

Your email address will not be published. Required fields are marked *