UIF TERS AUDITS

UIF TERS Audits: What You Need to Know and How to Prepare

Welcome to our UIF TERS Audit resource page. If your business has been selected for a UIF TERS audit, you’re likely wondering what the process involves and how to ensure your compliance. On this page, you’ll find all the important information about UIF TERS audits, as well as free downloadable templates to help you navigate the audit requirements.

What Is a UIF TERS Audit?

The UIF TERS (Temporary Employer/Employee Relief Scheme) was introduced by the South African government to help businesses pay their employees during the COVID-19 lockdown. If your company received UIF TERS funds, it might now be subject to an audit to ensure that the funds were distributed properly to employees.

Why Is a UIF TERS Audit Conducted?

The purpose of the UIF TERS audit is to verify:

• That the UIF TERS funds received were used to pay employees.
• The correctness of the documentation submitted during the TERS application process.
• That businesses complied with the UIF regulations and conditions of the relief scheme.

What Documents Are Needed for the UIF TERS Audit?

To ensure your business is fully prepared for the audit, you may be required to submit several documents, including:

• Bank statements showing UIF TERS payments and payments to employees.
• Payroll records from the relevant period.
• Employee contracts and payslips.
• Proof of payment of UIF TERS funds to employees.
• Employment tax documents such as IRP5 and EMP201 forms.

If you don’t have all the required documents or are missing specific paperwork like Tax Clearance Certificates or CIPC registration, we’ve provided templates below to help explain your situation to auditors.

Common UIF TERS Audit Issues

Many businesses face challenges during the audit, such as:

• Missing documents, especially Tax Clearance Certificates for the period.
• Difficulty obtaining past bank statements.
• Inability to provide CIPC registration for sole proprietors or domestic worker employers.

We’ve created templates and resources to help address these issues.

Downloadable UIF TERS Audit Templates

We have created easy-to-use templates to assist you in meeting the audit requirements:

• Communication Letter (for businesses that temporarily closed due to lockdown)
• Termination Letter (for employees let go during or after lockdown)
• Employee Attendance Register (for tracking employee attendance during lockdown)
• Letter of Authority (for appointing someone to handle the audit on your behalf)
• Tax Clearance Explanation Letter (for businesses unable to provide a 2020 or current Tax Clearance Certificate)
• Non-CIPC Registration Letter (for sole proprietors or those who are not registered with CIPC)

Click the links below to download each template:

• [Communication Letter of Temporary Closure] (link)
• [Termination Letter] (link)
• [Attendance Register] (link)
• [Tax Clearance Explanation Letter] (link)
• [Non-CIPC Registration Letter] (link)

Need Help with Your UIF TERS Audit?

Navigating a UIF TERS audit can be challenging, especially if your business has missing documentation or other complications. We’re here to help. If you need further assistance or would like to speak to a professional about your audit, contact us using the form below.