The spread of the COVID-19, and the attempts to slow it down, have presented some of the most unique challenges to business owners and entrepreneurs in modern history.
The largest costs for most companies are usually the payroll to cover staff remuneration and some owners are considering reductions in salaries of all staff and even retrenchment – given that they are highly geared and their businesses need to run to cover costs.
The Unemployment Insurance Commissioner, after consultation with Unemployment Insurance Executive, has developed a Corona Virus Temporary Employer-Employee Relief Scheme (COVID19TERS) to contribute to the containment of the Corona Virus and its impact.
As this scheme was rushed and unplanned, we have already had three sets of changes to the proposed system.
Fortunately, the most recent round of changes has allowed for the TERS relief to be paid to the employer, subject to meeting the terms and conditions and submitting all the required documentation.
So, we have remnants of three different TERS Claim processes circulating. The first two are outdated already.
The challenge ahead is to keep up to date with changes and submit the correct application documentation and be processed to receive the UIF TERS Claim. This process is a monthly claim and documents need to be submitted monthly. Currently the Directive issued by the Department of Labour is for 3 months only (April, May and June). We watch carefully for more changes.
We see a lot of employers taking the position of applying for UIF TERS relief – mostly because of the challenges that their businesses face, partly because it is the ‘right’ thing to do and unions will be breathing heavily on them for not taking the correct actions in these challenging times, and partly because nobody knows when this lockdown will end and the damage to the business in the aftermath.
ACS Plus offers a service to all existing clients, applying for the UIF TERS claim. In addition, we have links at the Department of Labour and have kept abreast of changes. We are able to assist non-clients as well, without affecting current relations with bookkeepers and accountants. This is a payroll service and very specific.
At this point there is no confirmation that such payroll claims can be retrospective and clients approaching us in September to claim for April, May and June may be too late. We suggest acting with haste and getting into the system as soon as possible.
Should you need assistance, the ACS Plus team has the knowledge and expertise to engage and apply for the TERS claims. We are commissioner of oaths and can complete the application process as required.
Comments