How Does My Company Claim Skills Levies?

Want to claim your company’s skills development levy? Here’s what you can do to activate your company and employee’s potential. Find out that and more.

What is a Skills Development Levy?

A Skills Development Levy is used to developing skills and learning in the workplace. In South Africa, the levy is determined by an employer’s salary. These funds are used to improve employees and help them develop skills. 

Who Pays for Skills Development Levies?

All employers who are registered have to pay the levy. To register for this and other tax types, you can do so by using the client information system.

Calculating Skills Development Levy – How Much Should I pay?

The levy deducts 1% of an employee’s salary. That includes overtime, leave pay, bonuses, commissions and more. The employer should pay the monthly deduction SARS using the Monthly Employer Deduction. This is just to confirm that the employer declares the total payments.

Employer gaining skills with Skills Levies

How can Your Company Claim From the Skills Levies?

If you want to claim from the skills levies, here’s what you can do. Follow these steps to activate your company’s potential. 

1. Contribute towards the Skills Development Levies (SDL)

Check if you are registered for Skills Levies. If you are not registered, you must visit your nearest South African Revenue Services (SARS) offices and complete the applicable form. SARS officials will be able to assist with the completion of the form. They will ensure you pay regularly.

2. Be registered with your SETA

SARS determines to which SETA the company belongs and thus which SETA levies should be paid too.

3. Submit your Workplace Skills Plan (WSP) and Annual Training Report (ATR)

The report should be  from 1 April – 30 March of the following year, and it should be submitted by 30 June of that same year.

Appoint a Skills Development Facilitator (SDF). The SDF should be registered with the applicable SETA) The SDF is responsible for planning, implementation and reporting SETA on training in the company. He must facilitate the consultation process in the development of the Workplace Skills Plan (WSP) and Annual Training Report (ATR), follow up on the payment of levies to SARS and also submit WSP and ATR.

You can claim for training that isn’t given by SETA-accredited companies. You can claim for structured, internal, day-to-day training and learnerships. It is imperative to directly contact the SETA your company is registered with to enquire how to claim for these expenses. Procedures differ vastly for each SETA.

Please note that each Seta’s requirements may differ. Please contact your applicable Seta directly and propose a meeting.

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Last Updated: May 6, 2020

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