And…a whole lot more info on TERS

  • March 8th, 2021

Information supplied with the friendly assistance of SATSA:

Portal opens for COVID-19 TERS Applications

The Department of Employment and Labour’s online portal for UIF TERS has opened for claims for the period 16 October 2020 to 31 December 2020 for affected sectors, including hospitality and tourism.

SATSA is awaiting further information on the schedule for claims up to March 15, 2021, following the announcement that hospitality and tourism would be amongst the sectors qualifying for this benefit.

TERS Declined due to SARS Category

SATSA has been made aware of a number of members who have been declined for TERS due to SARS Sector Categories / SIC (Standard Industry Classification) codes.
 
This has been elevated through TBCSA for resolution with UIF and Department of Labour if possible, but we have also approached specialists through our partnership with COBRA to see if there are other solutions.
 
SIC codes needs to be supplied for the application and the system will automatically check it against the SARS code. Please click here to see the list of SIC codes.

  • Code 55 is relevant for Accommodation
  • Code 79 is the relevant division for Travel agency, tour operator, reservation service and related activities.
  • Code 93 is relevant division for sports activities and amusement and recreation activities

 There are two ways to make a SIC change at the moment:
 

  1. SARS APP

The RAV01 form can currently not be updated through the normal SARS eFiling system. The SARS App needs to be downloaded, the eFiling accessed through the App, and the RAV01 updated accordingly.
 

  • ITR14

The second option is to update same on the next Company tax return submission Itr14 if that has not been done yet.

Once the RAV01 has been updated an email can be sent to the SARS practitioner unit pcc@sars.gov.za by your tax practitioner to request the change be done urgently. SARS will acknowledge the receipt of the request with an email containing a case reference number. If not resolved within two weeks a complaint can be lodged through the clients eFiling profile under Services/Complaints using the case number provided. SARS is normally allowed two weeks to then resolve the matter.

We will keep you updated on any progress in this area.


TERS Extension, Reduced work time benefit for temporary layoff and bulk termination submissions:

Following our news update yesterday, TERS declined due to SARS category, we would like to also share with you the latest updates issued by TERS earlier this week regarding the new application windows that have opened for certain sectors.

The Association of Southern African Travel Agents (ASATA) has summarised the new information and provided access to the relevant documentation regarding the UIF TERS extension below.

Only certain sectors and certain categories of employees will be able to claim TERS benefits.
 
There will be 2 trances/iterations applicable i.e. – 1st iteration for period 16 Oct 20 – 31 Dec 20 and 2nd iteration for period 1 Jan 21 – 15 March 21.
 
Please note that the TERS online portal for the 1st iteration opened on 2 March 2021.
 
The new direction covers the following categories of employees:

  • Employees who are on temporary lay-off or reduced work time (i.e. short time) with the selected sectors. Please refer to Business,Business Activities & Section Division 1.
  • Take note that you will need to supply your Sector Industry Classification (SIC) when applying
  • Employees (in all sectors) who were:

           – Required to self-isolate or quarantine to prevent the spread of COVID19
           – Ages of 60 and above and could not be reasonably accommodated in the   
              workplace
           – With co-morbidities and could not be reasonably accommodated in the   
              workplace (supporting documentation would need to accompany the above   
              claims – such requirements will still be communicated by TERS including, when
              the portal for submission of such claims are to open)

Employers who qualify for the extended TERS benefits need to take note of the following:

Requirements: (same as per previous applications)

  • Signed approval/acceptance letter
  • Bank confirmation letter (current)
  • Proof of payment to employees for previous benefits claimed
  • Refund to UIF (only where applicable)
  • Letter of authority

New:
A revised excel template (Copy of National Disaster Payment Excel FINAL – Phase 2) needs to be completed and uploaded in CSV format.

There are four 4 claim codes:

  • Claim code 1: Employees who are on temporary lay-off or reduced work time (i.e. short time) with the selected sectors
  • Claim code 2: Required to self-isolate or quarantine to prevent the spread of COVID19
  • Claim code 3: Age of 60 and above who could not be reasonably accommodated in the workplace
  • Claim code 4: With co-morbidities and who could not be reasonably accommodated in the workplace



Employers who are not eligible for the TERS extended benefits, but have employees who are still affected by the closure of COVID19, will be able to apply for normal Unemployment Insurance Fund (UIF) benefits through ‘Reduced work time/Temporary layoff’ applications.
 
The benefit structure has been improved so that these employees are not placed in a less favourable position (we are currently awaiting the new directive which is due to be circulated later this week).
 
The simplified process will allow Employers to submit UIF applications to the Fund on behalf of their employees by completing a specific spreadsheet template.
 
The following categories will apply:

  • Mass or bulk terminations (i.e. retrenchments) with 16 as reason for termination.
  • Reduced work time/temporary layoff scheme (section 12.1B) with 17 as reason for termination 

Requirements:

  • Complete the relevant spreadsheet (i.e Mass retrenchment or Reduced work time application spreadsheet)
  • The above spreadsheet(s) needs to be locked/password protected.
  • A signed declaration by the Employer on the Company’s official letterhead. See an example here.
  • Where ‘Mass terminations’ needs to be completed – each employee needs to complete PES ESSA Form which needs to accompany the bulk termination spreadsheet
  • The PES ESSA form is not relevant for reduced work time/temporary layoff applications
  • Applications and supporting documents need to be emailed to the relevant provisional offices (see the last page of Easy Aid Guild Spreadsheet Application 2). For Cape Town, the correct email address is: CapetBCP@labour.gov.za
  • Very Important: the email address from where the application is emailed needs to correspond to the email address listed as the designated employee as per “Signed declaration by Employer” 

SATSA will continue to monitor this process, and should we receive any further information or updates, these will be communicated accordingly.