Skills Development
Is your annual payroll R500 000 or more? Is so, you are required by Law to pay 1% of your monthly payroll to SARS as Skills Development Levies.
A portion of the levies collected by SARS is distributed to the SETAs (Sector Education Training Authority), who in turn make this money available to their constituent companies (that’s you) to train your staff. The compliance requirement to be eligible to claim this money in the form of a grant, is that you complete and submit an Annual Workplace Skills Plan (WSP) and Annual Training Report (ATR) to your respective SETA.
Why should I engage in this process?
The benefit is that you are guaranteed 20% of your Skills Levy back as Mandatory Grants by simply submitting your WSP and ATR. Another 49.5% is available as a Discretionary Grant distributed at the SETA’s discretion.
We help you tap into this funding by aligning your business training needs with SETA’s Skills Development agenda.
It’s a win win situation with the ultimate benefit being a SKILLED WORKFORCE equipped to take your company to new heights.
How we help.
We manage this entire process from submission to submission and all the intricacies in between.
If you have more than 50 employees, you are required to establish a Training Committee and appoint a Skills Development Facilitator.
We take on this role and the activities below:
- Guide you through the compliance requirements and assist you to establish a Training Committee.
- Meet with you quarterly and Chair your Committee Meetings
- Train the committee.
- Engage with you and your key managers to conduct a Skills Audit and Training Needs Analysis.
- Compile your annual Workplace Skills Plan and Training Report (WSP & ATR) and submit accordingly to your SETA.
- Apply for additional funding through the SETA Discretionary Grant process.
- Assist in selected accredited training providers and placing your employees on fit for purpose training.
- Manage the recruitment and selection of interns and learners as relevant.
- Engage with the SETA on all aspects above.
- Most importantly align your Skills Planning with your BBBEE Strategy and requirements.
Skills Development and B-BBEE
Companies can no longer afford to ignore Skills Development since it is one of the Priority Pillars on the B-BBEE Scorecard. Failing to submit your Workplace Skills Plan (WSP) and Annual Training Report (ATR) will result in your company being unable to claim any points for the Skills Development element on the Scorecard.We jointly address your Skills Agenda and B-BBEE Agenda
Engaging in Learnerships and Apprenticeships is not as costly as you think
Companies can reduce their taxable liability in the form of a tax deduction by engaging in Learnerships and Apprenticeships. This is achieved through an Annual Allowance per Learnership / Apprenticeship and a Completion Allowance. Allowances can be backdated for a period of 3 years if not previously claimed. The claims are submitted annually with the company’s SARS returns. (Source: SARS)
How the Annual Allowance works
- For each full year of the Apprenticeship / Learnership, an amount of up to R40,000 may be claimed, depending on the level of learning.
- For anything short of a full year, the pro-rated number of months may be claimed.
- For a person with a Disability (PWD), the amount is R60,000.
- A completion grant applies in the final year of full completion.
Additional Tax Relief for Employers - The Employment Tax Incentive (ETI)
The ETI is effectively a youth wage subsidy that provides PAYE-registered employer’s with the opportunity to claim a tax credit based on their younger employee remuneration expenses. The subsidy applies to South African workers aged between 18 and 29 and covers the first two years of employment. It does not apply to domestic workers or persons ‘connected’ to the employer. Persons possessing an Asylum Seeker permit, or an ID issued in terms of the Refugee Act, are also included in this subsidy.)