Our Skills Development Facilitators (SDF’s) at SEESA can submit a Mandatory Grant submission to the applicable Sector Education Training Authority (SETA) so that the employer can claim back 20% of the SDL they pay to SARS.
SDL is a compulsory levy system to finance skills development programmes that provide an opportunity for employees in South Africa to develop and improve their skills. If a company’s annual payroll is R500 000 or more, then the employer of the company becomes liable to pay SDL to SARS. A company can register for SDL directly at SARS through the help of the SARS call centre or a bookkeeper.
1% of the total amount paid in salaries to the employees is payable by the employer on a monthly basis to SARS for SDL. The employer’s responsibility is to declare the SDL, and PAYE, UIF and/or ETI amount to SARS through the completion of the Monthly Employer Declaration (EMP201). The payment must be made within seven days after the end of the month, during which the amount was deducted. The employer can pay through SARS e-filing, EFT or at one of the relevant approved banking institutions.
Once the company has been registered for SDL, an SDF will submit the Mandatory Grant submission during January and April each year, using the implemented and planned training in order to claim back 20% of the SDL from the SETA that the company is registered with.
One of the types of training that can be used for the submission is internal training. Internal training is new skills or knowledge that the employees of a company receive from someone within the same company. It refers to business operations rather than formal learning at a university or any external training at another company. This training usually takes place every day in businesses without you knowing it.
The following are a few examples of how internal training can be recorded:
- New employee’s duties – When you explain a new employee’s duties, it can be used as induction training;
- New products – When a company receives new products that they need to sell, then their employees would require the necessary training;
- New programs – When a company is using a new program on a computer, then their employees would require the necessary training;
- Refresher courses – When the employees of a company receive training to refresh their knowledge, it can be used as a refresher course;
- Motivation and mentoring – When a company motivates their employees or mentor them, it can be used as internal training;
- How to – When the company employees receive training on how to use, how to maintain, basically any “how to’s” that’s applicable in the workplace, it can be used as internal training.
During the Mandatory Grant submission, the SDF needs to plan for training for the next year, where SEESA’s training can easily be used to plan for sufficient training. The Mandatory Grant submission and the SEESA short courses form part of the Skills Training product at SEESA.
In light of the above, it is crucial that businesses appoint an SDF to help with the Mandatory Grant submission to successfully claim back 20% of their SDL for implemented and planned training.
Contact your SEESA Skills Development Facilitator to assist your business with any Skills Development Levy queries you might have. Alternatively, SMS the word “SEESA” to 45776 for an expert legal advisor to contact you.
About the Author:
Charné Langenhoven started her career as an Administrator Officer in 2018 after which she was promoted to a Skills Development Facilitator in 2019. She has a passion for her job, enjoys working with her clients every day and to help her clients reach their Skills Development goal.
References:
- Skills Development Levy: https://www.sars.gov.za/types-of-tax/skills-development-levy/