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• cost incurred in the maintenance of the taxpayer,• domestic or private expenses,• interest, penalties and taxes,• expenses incurred to produce exempt income and• expenses relating to employment income (section 23(m)) received forany employment or office held. This does not apply to an agent orrepresentative whose remuneration is mainly derived in the form ofcommission based on sales or turnover attributable to that person, nordoes it apply to an independent contractor.10. UNEMPLOYMENT INSURANCE FUND (UIF)The Unemployment Insurance Contributions Act is administered by SARS andlegislates who should pay UIF contributions and how much.The Unemployment Insurance Act is administered by the Department ofLabour and legislates the payment of benefits as well the submission of aDeclaration of all employees each month.Both Acts define who are employees as well as remuneration for UIFpurposes.10.1 EmployeeBoth UIF Acts define an employee as “… any natural person who receivesremuneration, or to whom remuneration accrues, in respect of servicesrendered or to be rendered by that person, but excludes an independentcontractor.”In principle, an employee for the Fourth schedule is usually an employee forUIF, but there are some differences:• all legal entities are excluded from UIF,• common law independent contractors are excluded even if they areincluded as “deemed employees” by the Fourth schedule,• all employees must contribute irrespective of residency or citizenship, butonly those contributors with an RSA bar-coded ID number will be able toclaim benefits and• domestic workers and seasonal workers were included as employees fromApril 2003 with special conditions for domestic workers only.Excluded from contributions only (must be included in the Declaration):• learners employed according to Section 18(2) of the Skills DevelopmentAct,Payroll Pocket Guide 2013|2014© 2013 Sage VIP39