President Cyril Ramaphosa has announced various measures that the government is implementing to cushion the South African economy against Covid-19.
The measures include changes to the Youth Employment Tax Incentive programme. The purpose of the Employment Tax Incentive is to encourage employers to hire young and less experienced workers. Government incentivises these employers by reducing their monthly employees’ tax payable to SARS, with the incentive, while leaving the remuneration of youth employees unaffected. The ETI is claimed on a monthly basis by employers when submitting their PAYE returns to SARS.
The government proposed expanding the amended ETI programme for a limited period of four months, beginning 1 April 2020 and ending on 31 July 2020.
The proposed changes to the ETI programme are as follows:
Ø X – Monthly ETI
Ø A – R1000/R500
Ø B – 50% / 25%
Ø C – Monthly Remuneration
Ø D – R4500
The Maximum ETI claimable per qualifying employee has increased from R1 000 to R1 500 in the first year of employment and from R500 to R1 000 in the second year of employment.
Employers are allowed an ETI amount of R500 for employees who are between the ages of 30 and 65 years who earn less than R6 500.
The payment of ETI reimbursements to be made monthly instead of twice a year as a means of getting cash into the hands of tax compliant employers as soon as possible
If there was ever a time to implement skills it is now – these incentives are to your advantage.
We will source your unemployed able and disabled learners, do your SETA learnership registration, appoint an accredited training provider and guide you through the entire process.
Do not hesitate to contact us today and we will gladly assist you immediately.
You focus on the business while we focus on your skills solution.