The Skills Development Levies Act (No 9 of 1999) (SDLA) established a compulsory levy scheme for the purpose of funding education and training as envisaged in the Skills Development Act (No 97 of 1998) (SDA). The levy became payable with effect from 1 April 2000. The Department of Higher Education and Training (DHET) in conjunction with the various Setas, is responsible for administering the Act, while the South African Revenue Service (SARS) is responsible for the collection of levies.
How to register for the SDL
All liable organisations register for the SDL via the EMP101 form (application for registration) for which SARS issues an EMP103 form (notice of registration) on successful registration of the employer. If the firm already has an SDL number and the firm’s payroll is in excess of R500,000 per annum, the employer is to submit monthly returns via the EMP201 form. SARS issues an EMP213 as remittance advice. If the firm already has an SDL number and the firm’s payroll is less than R500,000 per annum, no information (a nil return) is submitted on the next EMP201 form. With e-filing, SARS greys out the SDL field. Should the employer become SDL paying subsequently, they must advise SARS of this (to free up the greyed area).
The amount payable is calculated as 1% (one percent) of the total amount of remuneration paid to employees. Any prescribed exclusions that are not leviable are subtracted from the total remuneration.
Skills Development Plan
Employers can claim 20% of total levy contributions annually through the submission of an approved Skills Development Plan (SDP). The SDP is submitted online and is due by latest 30 April of each year. The Seta’s use SDP information to determine sector skills needs and revise their skills development strategy accordingly. Accuracy of data is therefore of the utmost importance.
Since no extensions can be granted for submission, employers are urged to collect and collate the required data as soon as possible.
In order to apply for any Discretionary grant, a company must have submitted a Mandatory grant application for the current year which close on the 30th of April, each year.
All applications (Discretionary grant and Mandatory grant) must be completed and submitted online.
Criteria for Acceptance and Payment of the Mandatory Grant
The criteria for the acceptance and payment of the Mandatory Grant by Fasset are as follows:
- Employer registered with Fasset.
- SDL payments to SARS up to date.
- SDP (based on regulated format as published in the Government Gazette) correctly completed and submitted in the format required by Fasset.
- Deadline for submission is 30 April, or within 6 months of new employers registering for the SDL.
- Authorized signatories have signed where required
- Proof of the company’s banking details submitted (i.e. a cancelled cheque, bank statement or letter from the bank) in instances where such details have been changed
A new employer is one that has been operating for less than six months. In this case, we require an EMP 103 form from SARS as proof that the organisation is new. In an organisation were there are no employees we also accept a nil return.
The grants and allowances allocated as per the above is divided into co-funding basis between the MICT Seta and the stakeholder. The stakeholder undertakes to “re-invest” funds from the Mandatory Grants received, into the Skills Development Funding Strategy of the MICT Seta. The acceptance of the co-funding funding model forms part of the Service Level Agreements entered into by the MICT Seta with the Stakeholder Company.
Discretionary Grants Application Process
- Submission of Letter of Intent (LoI)
- Desktop verification of Levy Contribution by SSP and desktop confirmation of accreditation of the training provider by ETQA (L/ship & Skills)
- Desktop approval of vetting process by Snr Manager – LPD
- Site Vetting of Employer by LPD Advisor
- DG Committee recommend to CEO for approval
- Approval/Disapproval of recommendation by CEO
- Notification of application outcome and budget allocation drafting and signing of Service Level Agreement (SLA)
CLICK HERE TO DOWNLOAD – Online letter of intent Submission Manual for employers and stakeholders
Click to find out more: https://www.mict.org.za/inner.aspx?section=5&page=67
Discretionary Grant Funding
.1. Navigate to http://wwww.constructionseta.org
You must create a user account with a username and password of your choice that you will use to log in and out of the system.
2. click on my profile on the right of the page
3.Create a profile, and complete the details as requested there-on.
The application form cannot be downloaded.
You must complete it online.
The templates that can be used to capture additional information are downloadable.
You fill in the templates and upload them when you have completed them.