Set off UIF money against Leave

SOLVED

How do I apply the below in red on the VIP System(premier). How do I set off the UIF amount received againts Leave. Can I take the UIF amount and divide it by the Employee's daily rate (INC Screen) and convert the UIF payment into Leave Days.

An employer, who has required an employee to take annual leave during the period of the lockdown in terms of the BCEA may set off any amount received from the UIF in respect of that employee’s Covid-19 benefit against the amount paid to the employee in respect of annual leave provided that the employee is credited with the proportionate entitlement to paid annual leave in the future.

To speed payment of Covid-19 benefits to employees, employers are urged to pay employees based on the calculation applied and reimburse or set off such with Covid-19 benefits claim payments from UIF.

  • +1
    verified answer

    Good evening I3Group. 

    Below is an example to guide you on how to apply this on the payroll:

    Employee was paid R7000 and this was for 7 days of leave working out to a R1000 per day. The TERS payment was R3500. To work out the leave days that need to be credited to the employee, you take the R3500 / R1000 (leave remuneration per day) = 3.5 days. The 3.5 days must therefor be given back to the employee. You will then need to also reduce the leave payment amount of R7000 by the R3500 and then process the R3500 on the TERS earning line.