ABOUT SKILLS DEVELOPMENT LEVY
The Skills Development Act became effective on the 1st of April 2000. All registered companies (excluding those whose annual salary bill is less than R500,000 (previously R250,000) and who fall into the SMME category as defined by SARS in Feb 2005) are obliged to conform to the Act and as a result have to contribute 0.1% of their total payroll bill (and in future years !) the National Skills Fund.
Grants :
If companies get their administrative procedures and training plans in order they can claim between 50% and 75% of their contributions back by way of a grant system.
There are 4 kinds of grants available and each grant depends on a variety of factors. Also, each grant is a “step up” from one another – which means that in order to qualify for Grant B you must have had Grant A approved and to get Grant C you must have qualified for Grant B etc. etc.
The Grants available are as follows:
Grant A – 15% of your contribution
Grant B – 10% of your contribution
Grant C – 20% of your contribution
Grant D – 5% of your contribution but in certain instances it could be more.
Some Administrative notes…
· The levy should be calculated by your payroll system automatically each month and your payroll system should also produce the necessary report to enable you to analyse your monthly payment to SARS. The amount of Skills Development Levy (SDL) must be entered on to your EMP201 form (i.e. the monthly PAYE form that you send to SARS each month) and payment is made together with your monthly PAYE bill.
· The information must be transcribed on to a predefined form that is sent to you each month by SARS.
· As with PAYE, the Skills Levy, must be paid to SARS each month who act as the “collector” for the Departments of Education and Labour, who are jointly responsible for the whole Skills Development initiative.
· Your money (and your report!) is passed on to a SETA each month on your behalf. A SETA is a Sector Education and Training Authority and their role is to create and monitor training initiatives and plans within the 28 different industry sectors (your company will fall into one of these 28 SETA’s - you should have registered with a SETA by now).
· The usual penalties for late payment, as well as interest, will be charged by SARS – so make sure you get your payment to SARS before the 7th of each month.
· Generally ALL employees salaries are “levyable” and the “levyable” amount is based on the same package / salary calculation used for PAYE purposes.
· Directors / owners of Businesses, are no longer excluded so make sure your payroll includes Directors/Members earnings into the SDL calculation, otherwise you will find yourself underpaying and standing the risk of penalties and fines.
The entire process of submitting PAYE, SDL and even your monthly VAT is made a whole lot more easier, secure and on time when you use the handy SARS e-filing Service. Go to www.sarsefiling.co.za to find out more. |