Address
43 Station Drive
Morningside
Berea
Durban
4001
Contacts
Email: info@eduqual.co.za
Tel: 062 500 7082
WhatsApps: 062 500 7082
For Email Support
support@eduqual.co.za
Employers are required to pay 1% of their payroll to the skills development levy fund every month, and the levy may not be deducted from workers’ pay.
As an employer, you’re required to pay the skills development levy every month if:
- You’ve registered your employees with SARS for tax purposes (Pay As You Earn (PAYE)), and
- You pay over R500 000 a year in salaries and wages to your employees (even if they’re not registered for PAYE with SARS).
What happens to the SDL Levy?
The levies are distributed via SETAs.
SARS determines to which SETA the company belongs and thus which SETA levies should be paid too. It remains your responsibility to double check that the allocation is correct. Your company must be registered with your SETA
What are the benefits of the Skills Development Levy?
If your company promotes training and learning in the workplace and you pay your Skills Development Levy every month, you are entitled to the following benefits:
• Skills development grants
• Substantial tax allowances when you implement Learnerships in your company.
The Skills Development Act was developed in order to improve the working skills of South Africans. This act enables the economy to grow, offering an improved life for all South Africans.
Every employer who is registered with SARS for PAYE and who has an annual payroll (total salaries and wages including bonuses, commission, etc.) in excess of R500 000 (approximately R41 000 per month), or 50 plus staff members is required to pay skill levies.
Workplace Skill Plan (WSP)
A Workplace Skills Plan outlines how an organisation/employer is going to address the training and development needs within the workplace. It assists employers in identifying and providing relevant training that will address the skills gaps within the organisation.
Annual Training Reports (ART)
The Annual Training Report (ATR) is a follow-up on the WSP, as it reports on the education and training interventions that were delivered in the previous year.
Accreditations
SETA (Skills Education Training Authority) Accredited training entails that a skills development course is approved by one of the 21 industry specific SETAs. Each SETA sets specific standards for training providers which ensures the quality of the SETA accredited courses
Skills development as a priority element of the B-BBEE scorecard
Training is probably one of the easiest ways to boost your B-BBEE rating for maximum points.
You will not qualify for any points for skills development element if you have not submitted a WSPATR which has to be approved.
A Learnership is a vocational education and training programme to facilitate the linkage between structured learning and work experience in order to obtain a registered qualification. It combines theory and workplace practice into a qualification that is registered on the National Qualifications Framework (NQF)
Funded Learnerships
With funded Learnerships, a learner’s employer will submit an application for funding to the relevant SETA which funds will be allocated towards a full Learnership qualification.
Unfunded Learnerships
Should there be a case whereby no funding for Learnerships is available from the relevant SETA. An employer may opt for an unfunded Learnership. In this case all costs of the Learnership will be borne by the employer. Nevertheless, when a company enters into a Learnership agreement with one or more learners, companies qualify for a tax rebate upon the learner completing the qualification which can be offset against training and assessment costs. An employer will qualify for a tax rebate regardless of whether the Learnership was funded by the relevant SETA.
Tax Incentive
The Learnership Tax incentive provides an additional tax deduction for registered learners.
The objectives of this tax incentive is to encourage the creation of jobs by reducing the cost of hiring new employees, offering Learnerships and to encourage skills development in the workplace
Skills development as a priority element of the B-BBEE scorecard
Training is probably one of the easiest ways to boost your B-BBEE rating for maximum points.
You will not qualify for any points for skills development element if you have not submitted a WSPATR which has to be approved.
Funded Learnerships – With funded Learnerships, a learner’s employer will submit an application for funding to the relevant SETA which funds will be allocated towards a full Learnership qualification.
Unfunded Learnerships – Should there be a case whereby no funding for Learnerships is available from the relevant SETA. An employer may opt for an unfunded Learnership. In this case all costs of the Learnership will be borne by the employer. Nevertheless, when a company enters into a Learnership agreement with one or more learners, companies qualify for a tax rebate upon the learner completing the qualification which can be offset against training and assessment costs. An employer will qualify for a tax rebate regardless of whether the Learnership was funded by the relevant SETA.
Tax Incentive
The Learnership Tax incentive provides an additional tax deduction for registered learners.
The objectives of this tax incentive is to encourage the creation of jobs by reducing the cost of hiring new employees, offering Learnerships and to encourage skills development in the workplace
Training isn’t just important to any company, it is vital.
Although there are many categories of training such as management training and or sales training, employees with Project Management skills are an important asset to any organisation.
But what does training and development mean to your organisation?
Training presents a prime opportunity to expand the knowledge base of all employees, but many employers in the current climate find development opportunities expensive. Employees attending training sessions also miss out on work time which may delay the completion of projects. However despite these potential drawbacks, training and development provides both the individual and organisations as a whole with benefits that make the cost and time a worthwhile investment. The return on investment from training and development of employees is really a no brainer.
SETAs
Sector Education and Training Authority (SETA), is a vocational skills training organisation in South Africa. There are 21 SETAs.
Each SETA is responsible for managing and creating Learnerships, internships, unit-based skills programmes, and apprenticeships within its jurisdiction.
• Agricultural Sector Education and Training Authority (AGRISETA)
• Banking Sector Education and Training Authority (BANKSETA)
• Chemical Industries Education and Training Authority (CHIETA)
• Construction Education and Training Authority (CETA)
• Culture, Arts, Tourism, Hospitality and Sport Sector Education and Training Authority (CATHSSETA)
• Education, Training and Development Practices Sector Education and Training Authority (ETDP SETA)
• Energy and Water Sector Education and Training Authority (EWSETA)
• Fibre Processing and Manufacturing Sector Education and Training Authority (FP&M SETA)
• Finance and Accounting Services Sector Education and Training Authority (FASSET)
• Food and Beverage Manufacturing Industry Sector Education and Training Authority (FOODBEV SETA)
• Health and Welfare Sector Education and Training Authority (HWSETA)
• Insurance Sector Education and Training Authority (INSETA)
• Local Government Sector Education and Training Authority (LGSETA)
• Manufacturing, Engineering and Related Services Sector Education and Training Authority (MERSETA)
• Media, Information and Communication Technologies Sector Education and Training Authority (MICT SETA)
• Mining Qualifications Authority (MQA)
• Public Service Sector Education and Training Authority (PSETA)
• Safety and Security Sector Education and Training Authority (SASSETA)
• Services Sector Education and Training Authority (SSETA)
• Transport Education Training Authority (TETA)
• Wholesale and Retail Sector Education and Training Authority (W&RSETA)
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43 Station Drive
Morningside
Berea
Durban
4001
Email: info@eduqual.co.za
Tel: 062 500 7082
WhatsApps: 062 500 7082
support@eduqual.co.za