What is skills development?
The shortage of skilled workers has been identified as the major impediment to economic growth in South Africa.
As a response to the shortage the Skills Development Act was implemented. This was accompanied by the Skills Development Levies Act which requires all employers with an annual payroll higher than R500 000 to pay 1% of their payroll each month as a Skills Development Levy (SDL).
The SDL is allocated to the relevant Sector Education and Training Authority, or SETA. There are currently 23 SETA's operating and cover the whole economy.
What must I do?
By completing the Workplace Skills Plan and Annual Training Report it provides the relevant institutions involved in this crucial intervention with the statistics that they desperately need to ensure that the money that you pay gets used where it is needed most.
In other words, it is not enough to just pay your levies, they also need your cooperation in supplying accurate statistics so we can all benefit from a growing economy.
Can I get money back?
The Skills Development Levy Act stipulates that if you adhere to the following criteria, you are entitled to a 20% refund on your SDL.
- You must be up to date with your SDL payments to SARS.
- You must appoint a registered Skills Development Facilitator (someone like us).
- You have to do training in your company (inhouse or external).
- You have to submit a Workplace Skills Plan and Annual Training report (we will complete and submit this on your behalf)
Amount of Sdl paid per month R 1000-00
Paid per year R 12000-00
Refund = 20% R 2400-00
Minus our fee of 20% of your Sdl levy (R200-00 x 12) R 2400-00
Total refund payable to you per year R 2400-00 TAX FREE.
As you can see, if you adhere to the criteria you are entitled to the refund. By appointing us we will claim on your behalf and do all the work required on your behalf.
At the end our services are paid for by the Mandatory Grant and all documentation and submissions are done on your behalf.