Maximising Tax Benefits for Employee Training in South Africa

Introduction

  • Overview of the importance of employee training.
  • Purpose of the booklet.
  • Summary of key benefits of claiming tax for training.

Overview of the importance of employee training

Employee training is crucial for fostering a skilled and motivated workforce, leading to enhanced productivity, job satisfaction, and competitiveness in the marketplace. Training ensures that employees stay updated with the latest industry trends and technologies, which is vital for maintaining a company’s competitive edge.

Purpose of the booklet

This booklet serves as a comprehensive guide to help South African employers understand and maximise the tax benefits associated with employee training. It covers the various tax incentives, compliance requirements, and practical steps needed to claim these benefits effectively.

Summary of key benefits of claiming tax for training

Training your staff goes beyond just financial benefits; it also positively impacts their professional and personal lives. Here’s how investing in training can benefit both your employees and your organisation:

  • Cost Savings.
  • Enhanced Skills.
  • Compliance.
  • Competitive Advantage.
  • Human and Emotional Benefits.

Cost Savings:

  • Financial Relief: Reduce overall training expenses through tax deductions and grants, making training more affordable for your business.
  • Resource Efficiency: Utilise government grants and tax incentives to maximise your training budget.

Enhanced Skills:

  • Increased Competence: Improve employee capabilities, leading to higher productivity, better quality of work, and increased innovation within your team.
  • Career Development: Provide employees with opportunities for growth and advancement, which can lead to higher job satisfaction and retention.

Compliance:

  • Regulatory Adherence: Ensure adherence to South African tax laws and regulations, avoiding potential fines and legal issues.
  • Standardisation: Maintain high standards of operation by training employees to comply with industry regulations and best practices.

Competitive Advantage:

  • B-BBEE Requirements: Better positioning for meeting Broad-Based Black Economic Empowerment (B-BBEE) requirements, enhancing your company’s reputation and marketability.
  • Market Positioning: Gain a competitive edge by having a well-trained, skilled workforce that can adapt to market changes and drive business success.

Human and Emotional Benefits:

  • Boosted Morale: Employees feel valued and appreciated when they see their employer investing in their development. This leads to higher morale and motivation.
  • Increased Confidence: Training empowers employees by building their confidence in their skills and abilities, which can lead to improved performance and job satisfaction.
  • Work-Life Balance: Offering flexible learning options allows employees to balance their work, personal life, and professional development needs effectively, leading to increased satisfaction and productivity.

Understanding Tax Benefits for Training

  • Explanation of tax incentives and deductions.
  • Importance of compliance with tax regulations.
  • Overview of relevant South African tax laws and regulations.
  • Utilise ETI (Employment Tax Incentive) by hiring young employees.

Explanation of tax incentives and deductions

South Africa offers several tax incentives to encourage businesses to invest in employee training. These include the Skills Development Levy (SDL) and Employment Tax Incentive rebates and various tax deductions for training-related expenses. Understanding these incentives can significantly reduce the cost of training.

Skills Development Levy (SDL)

The Skills Development Levy (SDL) is a levy imposed by the South African government on employers to fund skills development and training initiatives across the country. This levy is mandated by the Skills Development Levies Act (No. 9 of 1999) and aims to enhance the skills base of the South African workforce.

Employment Tax Incentive

The Employment Tax Incentive (ETI) is a South African government initiative designed to encourage employers to hire young and less experienced workers by reducing the cost of hiring them. The ETI aims to tackle youth unemployment and stimulate job creation by providing tax benefits to employers.

Utilise ETI (Employment Tax Incentive) by hiring young employees

Utilise the Employment Tax Incentive (ETI) by hiring young employees to benefit from tax relief and infuse your team with new skills and fresh perspectives. The ETI reduces hiring costs by sharing wage expenses with the government, helping businesses to affordably employ young workers. This initiative not only provides tax savings but also aids in reducing youth unemployment and enhancing the employability of young job seekers​.

Importance of compliance with tax regulations

Compliance with tax regulations is essential to avoid penalties and ensure eligibility for tax benefits. Employers must adhere to the guidelines set by the South African Revenue Service (SARS) and the Sector Education and Training Authorities (SETAs).

Overview of relevant South African tax laws and regulations

Key regulations include:

  • Skills Development Act.
  • Income Tax Act.
  • Guidelines from SARS and SETAs.
  • Employment Tax Incentive.

These regulations outline the eligibility criteria, documentation requirements, and processes for claiming tax benefits related to training.

Types of Training Eligible for Tax Benefits

  • Accredited training programs.
  • In-house training programs.
  • Workshops and seminars.
  • Online and distance learning courses.
  • Apprenticeships and internships.
  • Hiring young employees.

Accredited training programs

Training programs accredited by SETAs or other recognized bodies. These programs ensure quality training and compliance with national standards.

In-house training programs

Internal training initiatives that align with the company’s skills development plans can also qualify for tax benefits.

Workshops and seminars

Participation in relevant workshops and seminars that enhance employees’ skills and knowledge may be eligible for tax deductions.

Online and distance learning courses

With the rise of digital learning platforms, many online courses now qualify for tax benefits, providing flexible and accessible training options.

Apprenticeships and internships

Programs that offer practical work experience and training, such as apprenticeships and internships, are incentivized through tax deductions and rebates.

Hiring young employees

Hire young employees to take advantage of the Employment Tax Incentive (ETI). This program offers tax relief by reducing hiring costs, as the government helps cover part of the wages. By participating, your business saves on taxes, gains new skills and fresh perspectives, and helps reduce youth unemployment.

The Skills Development Levy (SDL)

  • What is the SDL?
  • How is the SDL calculated?
  • Compliance requirements for employers.
  • Benefits of contributing to the SDL.

What is the SDL?

The SDL is a tax imposed on employers to fund skills development initiatives. It is 1% of the total payroll for employers with an annual payroll exceeding R500,000.

How is the SDL calculated?

The levy is calculated as 1% of the total remuneration paid to employees. For example, if a company’s annual payroll is R1,800,000, the SDL would be R18,000 annually.

Compliance requirements for employers

Employers must register with the relevant SETA, submit a Workplace Skills Plan (WSP) and Annual Training Report (ATR), and ensure timely payment of the SDL.

Benefits of contributing to the SDL

Contributing to the SDL allows access to various grants that can offset training costs, such as mandatory and discretionary grants. These grants can significantly reduce the financial burden of employee training.

Claiming the SDL Grant

  • Types of grants available (Mandatory Grant, Discretionary Grant).
  • Eligibility criteria for each type of grant.
  • Steps to apply for the SDL grants.
  • Documentation and records required.

Types of grants available (Mandatory Grant, Discretionary Grant)

  • Mandatory Grant: Up to 20% of the SDL paid can be claimed by submitting WSPs and ATRs.
  • Discretionary Grant: Up to 50% of the SDL can be claimed for specific training initiatives approved by the SETA.

Eligibility criteria for each type of grant

To qualify, employers must:

  • Be compliant with SDL payments.
  • Submit the required documentation.
  • Meet the criteria set by their relevant SETA.

Steps to apply for the SDL grants

  1. Register with the relevant SETA.
  2. Submit the WSP and ATR by the deadline.
  3. Apply for discretionary grants for specific training programs.
  4. Ensure all documentation is accurate and complete.

Documentation and records required

  • Detailed training records.
  • Financial records of SDL payments.
  • Copies of WSPs and ATRs.
  • Receipts and invoices for training expenses.

Tax Deductions for Training Expenditure

  • What training expenses are deductible?
  • Calculating deductible training expenses.
  • Record-keeping and documentation requirements.
  • Common mistakes to avoid.

What training expenses are deductible?

Expenses directly related to training, such as course fees, materials, and instructor fees, are deductible. This can include both internal and external training programs.

Calculating deductible training expenses

Employers should keep detailed records of all training-related expenditures to ensure accurate deductions. Proper documentation is essential for compliance and successful claims.

Record-keeping and documentation requirements

Maintaining accurate records is crucial for compliance. This includes receipts, training logs, and financial statements that detail training expenses and related costs.

Common mistakes to avoid

  • Missing submission deadlines.
  • Inaccurate or incomplete documentation.
  • Not aligning training programs with SETA requirements.

Benefits for Small and Medium Enterprises (SMEs)

  • Special provisions and incentives for SMEs
  • How SMEs can maximise their training-related tax benefits
  • Case studies of successful SME implementations

Special provisions and incentives for SMEs

SMEs can access additional support and incentives specifically designed to encourage training and development. These include:

  • Simplified Grant Application Processes: Streamlined procedures to make it easier for SMEs to apply for training grants.
  • Increased Grant Allocation: Higher grant percentages to offset training costs, often up to 70% of the training expenses.
  • Support Services: Access to advisory and consulting services to help SMEs develop effective training programs and comply with requirements.
  • Tax Rebates: Specific rebates on training-related expenses that SMEs can claim back, reducing the overall financial burden.
  • Skills Development Facilitators (SDF): Dedicated facilitators to assist with the administrative and reporting processes required to claim grants.

How SMEs can maximise their training-related tax benefits

  • Plan Strategically: Align training programs with the company’s business goals and skills gaps.
  • Leverage Available Grants: Apply for both mandatory and discretionary grants to maximise funding.
  • Utilise Support Services: Engage with skills development facilitators and consultants to ensure compliance and effective use of resources.
  • Document Thoroughly: Maintain accurate records of all training activities and expenses to facilitate claims and audits.
  • Stay Informed: Keep up-to-date with changes in tax laws and regulations to take advantage of new incentives.

Case studies of successful SME implementations

  • Case Study 1: An SME in the manufacturing sector increased its productivity by 30% after implementing a targeted training program funded by SDL grants.
  • Case Study 2: A technology startup reduced employee turnover by 50% through an online learning initiative, claiming back 60% of the costs through tax rebates and grants.
  • Case Study 3: A retail business improved its BEE score by aligning its training programs with national development goals, leveraging both mandatory and discretionary grants for maximum impact.

Practical Steps for Implementing a Training Program

  • Assessing training needs within the company.
  • Choosing the right training providers.
  • Developing a training budget.
  • Monitoring and evaluating training outcomes.

Assessing training needs within the company

Conducting a skills audit to identify gaps and prioritise training needs is the first step. This involves evaluating current employee skills and determining areas for improvement.

Choosing the right training providers

Selecting accredited and reputable training providers is crucial for ensuring quality training and compliance with regulations.

Developing a training budget

Allocating sufficient resources for training while maximising available tax benefits is essential. A well-planned budget ensures that training programs are adequately funded and aligned with business goals.

Monitoring and evaluating training outcomes

Implementing systems to track the effectiveness of training programs and adjust strategies as needed. Regular evaluation helps in measuring the impact of training on employee performance and business outcomes.

Employment Tax Incentive (ETI): Use This SARS Incentive to Bring Young People into Your Business

  • Benefits of Hiring Young Employees.
  • What is ETI?
  • Eligibility for ETI.
  • How ETI Works.
  • Avoiding ETI Pitfalls.
  • Maximising ETI Benefits.

With Youth Day celebrations approaching, business owners have an excellent opportunity to leverage the Employment Tax Incentive (ETI) from SARS to hire young, less experienced workers. This initiative not only aids in addressing South Africa’s high youth unemployment rate but also brings numerous benefits to businesses.

Benefits of Hiring Young Employees

  • Technological Savviness: Younger employees often have a better grasp of new software and technology, which can enhance the company’s tech adoption and usage.
  • Millennial Market Advantage: Companies targeting the millennial demographic benefit from having young employees who can effectively communicate with their peers.
  • Cost-Effective Labor: Young workers typically command lower wages, making them an economical choice for entry-level positions and allowing experienced staff to focus on strategic tasks.
  • Adaptability: Younger employees are generally more flexible and can quickly respond to changes and unexpected situations.
  • Cultural Fit: Hiring young workers offers companies the chance to develop a workforce tailored to their specific needs and culture.
  • Innovative Ideas: Young workers bring fresh perspectives, creative ideas, and different working methods, fostering innovation within the organisation.
  • Team Morale: The energy and enthusiasm of younger employees contribute positively to team building, productivity, and overall workplace morale.
  • Eagerness to Learn: Most young employees are keen to learn, gain experience, and apply their skills, absorbing training readily.

What is ETI?

The ETI is a tax incentive that encourages employers to hire young people aged 18 to 29 by reducing the cost of hiring through a cost-sharing mechanism with the government. This incentive remains available until February 28, 2029, and it supports employers by lowering their PAYE liabilities while providing young workers with valuable job experience.

Eligibility for ETI

Employers must:

  • Be registered for Employees’ Tax (PAYE).
  • Be tax compliant.
  • Meet ongoing qualifying criteria.
  • Note: Certain employers, like those in the government sector, are excluded.

Employees must:

  • Hold a valid South African ID or permit.
  • Be aged between 18 and 29 years.
  • Earn between the minimum wage or R2000 and R6500 for a 160-hour month.
  • Not be domestic workers or connected persons to their employers.
  • Meet ongoing qualifying criteria.
  • Note: In Special Economic Zones, the age restriction may not apply.

How ETI Works

ETI can be claimed for a 24-month period for each qualifying employee. The monthly value of the ETI reduces the PAYE due and is calculated based on the employee’s remuneration. The incentive amount decreases during the second 12-month period and varies with the employee’s monthly salary. Importantly, there is no limit to the number of qualifying employees for which a company can claim ETI, making it highly beneficial in labour-intensive environments.

Avoiding ETI Pitfalls

  • Claiming ETI for non-qualifying employees results in penalties equal to 100% of the claimed ETI.
  • Penalties also apply for displacing existing employees to employ ETI-qualified workers.
  • Accurate record-keeping is essential to comply with the ETI Act and avoid costly audits and verifications.

Maximising ETI Benefits

Correctly calculating and administering the ETI can offer substantial financial advantages, particularly for small businesses. Despite concerns about increased administration, proper assistance can ensure businesses take full advantage of this incentive while enjoying the benefits of employing young workers.

We can help you determine ETI suitability for your business and manage the process, ensuring compliance and maximising benefits.

Case Studies and Success Stories

Real-life examples of companies that have successfully claimed tax benefits

Case Study 1: Manufacturing Sector

Company: Precision Engineering Ltd.

Scenario: Precision Engineering Ltd., a medium-sized manufacturer, faced a skills gap in their workforce, particularly in advanced machinery operation. They decided to invest in comprehensive training programs for their employees.

Action: The company registered with their relevant SETA and submitted a Workplace Skills Plan (WSP) and Annual Training Report (ATR). They applied for both mandatory and discretionary grants.

Outcome: By leveraging SDL grants, the company claimed back 60% of their training costs. This enabled them to train 30 employees, significantly improving their operational efficiency and reducing production downtime by 20%.

Lesson Learned: Strategic alignment of training programs with business needs and leveraging available grants can yield substantial financial and operational benefits.

Case Study 2: Technology Start-up

Company: Innovate Tech Solutions

Scenario: Innovate Tech, a tech start-up, experienced high employee turnover due to a lack of professional development opportunities. They aimed to implement continuous learning programs to retain talent.

Action: The company utilised online courses and industry seminars to upskill their employees. They applied for tax deductions on training expenses and claimed SDL grants.

Outcome: Innovate Tech successfully claimed back 70% of their training-related expenses. The enhanced skills of their employees led to a 50% reduction in turnover and a 25% increase in project delivery efficiency.

Lesson Learned: Investing in employee development not only improves skills but also enhances employee retention and productivity.

Case Study 3: Retail Business

Company: Retail Plus

Scenario: Retail Plus aimed to improve their B-BBEE score by investing in skills development for their employees, particularly those from disadvantaged backgrounds.

Action: The company designed a comprehensive training program that included accredited courses and internships. They worked closely with a skills development facilitator to ensure compliance and optimise grant applications.

Outcome: Retail Plus received discretionary grants covering 80% of their training costs. The training program not only boosted their B-BBEE score but also improved customer service and sales performance by 30%.

Lesson Learned: Aligning training initiatives with national development goals and leveraging expert support can maximise financial benefits and improve business outcomes.

Lessons learned and best practices

  • Strategic Alignment: Ensure that training programs are aligned with the company’s strategic goals and address specific skills gaps.
  • Leverage Grants: Take full advantage of both mandatory and discretionary grants by maintaining compliance and submitting thorough reports.
  • Expert Support: Utilise skills development facilitators and consultants to navigate the complexities of grant applications and compliance requirements.
  • Continuous Improvement: Regularly evaluate and adjust training programs to ensure they meet evolving business needs and regulatory changes.

Interviews with HR and finance managers

Interview 1: HR Manager, Precision Engineering Ltd.

Name: Sarah Smith

Key Insights: “Our investment in training has not only improved our operational efficiency but also boosted employee morale. The SDL grants significantly reduced our financial burden, making it a win-win situation for both the company and our staff.”

Interview 2: Finance Manager, Innovate Tech Solutions

Name: James Brown

Key Insights: “Understanding the tax benefits and compliance requirements was crucial. By working closely with our SETA and utilising available grants, we managed to cut our training costs dramatically while enhancing our team’s skills.”

Interview 3: HR Director, Retail Plus

Name: Emily Johnson

Key Insights: “Aligning our training programs with B-BBEE goals was a strategic move that paid off. The grants we received helped us implement high-quality training without straining our budget. It’s been a game-changer for our business performance and social responsibility efforts.”

People Also Ask

The Skills Development Levy (SDL) is a tax imposed on employers to encourage continuous employee training and development. It is calculated at 1% of the total payroll for employers whose annual payroll exceeds R500,000. The levy is collected by the South African Revenue Service (SARS) and allocated to Sector Education and Training Authorities (SETAs) to fund various training programs. Paying the SDL helps companies access grants and improves their workforce’s skills, which can lead to enhanced productivity and competitiveness.

To claim back the SDL, employers must submit a Workplace Skills Plan (WSP) and an Annual Training Report (ATR) to their relevant SETA by the stipulated deadline, usually April 30 each year. By doing this, employers can access mandatory grants, which can refund up to 20% of the SDL paid. Additionally, discretionary grants are available for specific training initiatives, which can cover up to 50% of the SDL​.

Eligible training includes accredited programs recognized by SETAs, in-house training that aligns with the company’s skills development plans, workshops and seminars, online and distance learning courses, and practical programs like apprenticeships and internships. These types of training help in improving employee skills and productivity, and they qualify for various tax benefits and grants.

To access SDL grants, employers must:

  • Be registered with a relevant SETA.
  • Submit a Workplace Skills Plan (WSP) and an Annual Training Report (ATR) annually.
  • Ensure timely and accurate payment of the SDL.
  • Meet the specific criteria set by their relevant SETA, including adherence to quality standards and reporting requirements.

The SDL is calculated as 1% of the total remuneration paid to employees. For example, if a company’s annual payroll is R1,800,000, the SDL would be R18,000 annually. This amount is payable to SARS and is then allocated to the relevant SETA for funding training programs​.

Yes, SMEs can benefit significantly from SDL and other training-related tax incentives. There are special provisions for SMEs, including simplified grant application processes, increased grant allocations, and support services. These incentives help reduce training costs and improve workforce skills, enhancing overall business performance.

Employers need to maintain detailed records of all training activities and expenses, including:

  • Workplace Skills Plan (WSP) and Annual Training Report (ATR).
  • Receipts and invoices for training expenses.
  • Financial records of SDL payments.
  • Detailed training logs and attendance records.
  • Accurate documentation is essential for compliance and successful claims​

 Common mistakes include:

  • Missing submission deadlines for WSPs and ATRs.
  • Providing inaccurate or incomplete documentation.
  • Not aligning training programs with SETA requirements.
  • Failing to maintain proper records of training activities and expenses.
  • Avoiding these mistakes is crucial to ensure successful claims and compliance.

Investing in employee training can significantly improve a company’s B-BBEE score. Training programs that focus on upskilling employees, particularly those from disadvantaged backgrounds, contribute to the Skills Development element of the B-BBEE scorecard. Companies that align their training programs with B-BBEE goals can enhance their scores and improve their competitive positioning in the market.

Accredited training providers can be found through various SETAs, which maintain lists of recognized institutions. Additionally, organisations like the Quality Council for Trades and Occupations (QCTO) and the South African Qualifications Authority (SAQA) provide directories of accredited training providers. Employers should select providers that are reputable and aligned with their training needs

 

 

Additional resources and contact information

South African Revenue Service (SARS)

Website: www.sars.gov.za

Description: Official tax authority in South Africa, providing comprehensive guidelines on the Skills Development Levy, tax benefits for training, and compliance requirements.

Contact Information:

Phone: 0800 00 7277

Sector Education and Training Authorities (SETAs)

Website: www.serviceseta.org.za (example for Services SETA)

Description: Various SETAs govern different sectors, providing information on grants, training programs, and accreditation.

Contact Information:

Check the specific SETA relevant to your industry for contact details.

Department of Higher Education and Training (DHET)

Website: www.dhet.gov.za

Description: Governing body for education and training, including policies on skills development and B-BBEE.

Contact Information:

Phone: 0800 87 2222

Email: [email protected]

Quality Council for Trades and Occupations (QCTO)

Website: www.qcto.org.za

Description: Provides information on occupational qualifications and accredited training providers.

Contact Information:

Phone: 012 003 1800

Email: [email protected]

South African Qualifications Authority (SAQA)

Website: www.saqa.org.za

Description: Oversees the development and implementation of the National Qualifications Framework, including the accreditation of training providers.

Contact Information:

Phone: 012 431 5000

Email: [email protected]

Conclusion

  • Recap of the benefits of claiming tax for training.
  • Encouragement to invest in employee development.
  • Final tips for ensuring compliance and maximising benefits.

Recap of the benefits of claiming tax for training

Investing in employee training offers numerous advantages for businesses, not only in enhancing workforce skills and productivity but also in realising significant financial benefits through various tax incentives and grants. By strategically leveraging the Skills Development Levy (SDL), tax deductions, and discretionary grants, companies can substantially reduce the costs associated with training programs. These benefits, in turn, contribute to improved operational efficiency, higher employee retention, and better positioning in terms of Broad-Based Black Economic Empowerment (B-BBEE) compliance​.

Encouragement to invest in employee development

Continuous investment in employee development is vital for the long-term success of any organisation. A well-trained workforce is more adaptable, innovative, and capable of driving business growth. Beyond the immediate tax benefits, training fosters a culture of learning and development, leading to increased job satisfaction and reduced turnover rates. Employers are encouraged to view training not just as a compliance requirement, but as a strategic investment that yields substantial returns in terms of productivity, innovation, and competitive advantage​.

Final tips for ensuring compliance and maximising benefits

To fully maximise the tax benefits of employee training, businesses should adhere to the following tips:

  • Stay Informed: Keep up-to-date with the latest regulations and incentives related to training and development. Regularly review guidelines from SARS, SETAs, and other regulatory bodies to ensure compliance and take advantage of new opportunities.
  • Plan Strategically: Develop a comprehensive training plan aligned with your business goals and skills needs. This includes conducting skills audits, setting clear objectives, and choosing the right training providers.
  • Maintain Accurate Records: Ensure meticulous documentation of all training activities, expenses, and compliance-related paperwork. Accurate records are essential for successful grant applications and tax deductions.
  • Utilise Expert Support: Engage with skills development facilitators and consultants who can provide valuable guidance on navigating the complexities of SDL and other tax incentives. Their expertise can help streamline the application process and maximize benefits.
  • Evaluate and Adjust: Regularly monitor and evaluate the outcomes of your training programs to ensure they meet your business objectives. Be prepared to adjust your strategies based on feedback and evolving business needs​.

Appendices

Relevant tax forms and templates

  • Skills Development Levy (SDL) Payment Form.
  • Workplace Skills Plan (WSP) and Annual Training Report (ATR).
  • Employment Tax Incentive (ETI) Claim Form.

Skills Development Levy (SDL) Payment Form

the South African Revenue Service (SARS)  doesn’t provide a downloadable PDF form for EMP201 anymore.  However, you can access and complete the EMP201 form electronically through eFiling or SARS approved filing software. Here’s some additional information:

  • SARS eFiling: This is the recommended method for submitting the EMP201. You can access the eFiling portal and the EMP201 form directly through SARS website.
  • SARS approved filing software: Certain payroll software programs are approved by SARS for submitting the EMP201. If you use payroll software, check with your provider to see if they offer this functionality.

Here are some resources that you might find helpful:

Workplace Skills Plan (WSP) and Annual Training Report (ATR)

While there isn’t a universally accepted format for WSPs and ATRs, some Sector Education and Training Authorities (SETAs) in South Africa might offer templates specific to their industry. Here’s how you can find templates:

  • Search your SETA’s website: If your organisation falls under a specific SETA, check their website for resources related to WSPs and ATRs. They might offer downloadable templates or guidelines for completing these reports.
  • Generic Templates: While industry-specific templates are ideal, some generic versions can be helpful starting points. You can find resources like these by searching online for “[WSP template South Africa]” or “[ATR template South Africa]”. Examples of organisations that might offer generic templates include:

Remember, these generic templates might need adjustments to fit your organisation’s specific needs and  might not comply with any reporting requirements from your SETA.

Employment Tax Incentive (ETI) Claim Form

The South African Revenue Service (SARS)  doesn’t offer a downloadable PDF form for the Employment Tax Incentive (ETI) Claim  anymore.  However, you can claim the ETI electronically through eFiling or SARS approved filing software.

Here’s a breakdown of your options for claiming the ETI:

  • SARS eFiling: This is the recommended method. You can access the eFiling portal and the ETI claim functionality directly through SARS website.
  • SARS approved filing software: Certain payroll software programs are approved by SARS for submitting ETI claims. If you use payroll software, check with your provider to see if they offer this functionality.

Here are some resources that you might find helpful:

Sample training policies and procedures

  • Training and Development Policy Template.
  • Employee Training Procedure Manual.
  • Skills Development Policy.

Training and Development Policy Template

Online Resources:

While the specific content may vary, most Training and Development Policy Templates will cover these areas:

  • Policy Objectives: This section outlines the purpose of the policy, emphasising the importance of employee development and its alignment with the organisation’s goals.
  • Employee Eligibility: Specify which employees are covered by the policy (full-time, part-time, etc.).
  • Manager and Employee Responsibilities: Define the roles of both parties in identifying training needs, participating in development activities, and following up on progress.
  • Training and Development Methods: List the various methods offered, such as on-the-job training, workshops, conferences, online courses, etc.
  • Costs and Funding: Address how training costs will be covered (company budget, individual contributions, etc.).
  • Approval Process: Outline the steps for requesting and approving training participation.
  • Evaluation and Follow-up: Specify how the effectiveness of training programs will be measured and how learned skills will be applied in the workplace.

Additional Tips:

  • Tailor the Template: Adapt the template to fit your organisation’s size, industry, and specific needs.
  • Incorporate Legal Requirements: Ensure the policy complies with relevant labour laws and regulations.
  • Communicate Effectively: Once finalised, share the policy with all employees and make it readily accessible.

By following these steps, you can find or create a Training and Development Policy Template that fosters a culture of continuous learning and growth within your organisation.

Employee Training Procedure Manual

Free Templates:

General Structure:

While the specific content will vary depending on your training needs, most Employee Training Procedure Manual templates will cover these sections:

  • Introduction: This section provides an overview of the manual’s purpose, target audience, and how to use it effectively.
  • Company Information: Briefly introduce your company, its mission, values, and any relevant company policies.
  • Job Roles and Responsibilities: Outline the different job roles within your organisation and the key responsibilities associated with each.
  • Training Needs Assessment: Explain how training needs are identified within your company (performance reviews, skills gaps, etc.).
  • Training Programs: Detail the various training programs offered, including topics covered, delivery methods (on-the-job training, workshops, online modules, etc.), and target audience.
  • Training Procedures: Provide step-by-step instructions for conducting training sessions, including roles of trainers and trainees, preparation steps, and delivery methods.
  • Evaluation and Follow-up: Specify how the effectiveness of training programs will be measured and how learned skills will be applied in the workplace. This might include assessments, feedback mechanisms, and on-the-job support.
  • Appendices: Include any additional resources relevant to the training programs, such as safety protocols, reference materials, or equipment manuals.

Additional Tips:

  • Tailor the Template: Adapt the template to fit the specific needs of your organisation, the complexity of the training programs, and the target audience.
  • Use Clear and Concise Language: Make the manual easy to understand for employees with varying levels of education and experience.
  • Incorporate Visual Aids: Use images, diagrams, and videos to enhance understanding and keep trainees engaged.
  • Maintain the Manual: Update the manual regularly to reflect changes in procedures, new training programs, or industry regulations.
  • Make it Accessible: Consider offering the manual in different formats (printed, digital) to cater to different learning styles.

Skills Development Policy

Free Templates:

Alternative Approach: Building Your Policy

If you can’t find a suitable template, you can build your policy using the following structure:

  • Policy Statement: Briefly outline the organisation’s commitment to employee skills development and its alignment with business goals.
  • Applicability: Specify which employees are covered by the policy (full-time, part-time, contractors, etc.).
  • Roles and Responsibilities:
    • Management: Define management’s role in identifying skills gaps, allocating resources, and approving training plans.
    • Employees: Outline employee responsibilities in participating in skills development activities and applying learned skills.
  • Skills Development Process:
    • Needs Assessment: Explain how the organisation will identify skills gaps and training needs (performance reviews, skills audits, etc.).
    • Training and Development Methods: List the various methods offered, such as on-the-job training, workshops, conferences, online courses, tuition reimbursement, etc.
    • Selection and Approval: Outline the process for selecting appropriate training programs and obtaining approval for participation.
  • Funding and Resources: Address how training costs will be covered (company budget, individual contributions, etc.) and mention any resources available to support learning (learning management systems, mentorships, etc.).
  • Evaluation and Follow-up: Specify how the effectiveness of training programs will be measured and how learned skills will be applied in the workplace. This might include assessments, feedback mechanisms, and on-the-job support for applying new skills.

Additional Tips:

  • Tailor the Policy: Adapt the policy to fit your organisation’s size, industry, and specific needs.
  • Legal Compliance: Ensure the policy complies with relevant labour laws and regulations.
  • Communicate Effectively: Once finalised, share the policy with all employees and make it readily accessible.
  • Review and Update: Review the policy periodically to ensure its effectiveness and make adjustments as needed.

Skills Academy is an Accredited Training Provider

The academy’s courses are accredited by esteemed organisations such as the Institute of Certified Bookkeepers (ICB) and the Quality Council for Trades and Occupations (QCTO). These accreditations guarantee that the courses offered meet industry standards and provide employees with valuable and recognized qualifications.

Skills Academy’s Guarantee

Employees at Skills Academy receive high-quality education and support designed to drive tangible results. The academy’s accredited programs adhere to stringent industry standards, and their customised training solutions are tailored to specific business needs. Skills Academy promises:

  • Expert-Led Training: Courses are developed and delivered by experts who provide practical insights.
  • Comprehensive Support: Each learner is assigned a dedicated support champion for personalised assistance and guidance.
  • Flexible Learning Options: Blended learning approaches and diverse resources ensure an engaging and adaptable training experience.
  • Progress Tracking: Detailed monthly progress reports keep stakeholders informed and ensure the effectiveness of the training programs.

Skills Academy is committed to the satisfaction and success of its clients’ workforce. If training programs do not meet expectations, the academy will collaborate to address any issues and ensure goals are achieved. Partnering with Skills Academy means experiencing the difference in quality education and exceptional support.

Skills Academy’s Contact Details:

We can tailor a program to meet your specific needs and objectives. Schedule a consultation or request a customised proposal.

Meet Our Course Specialists:

Debbie Richmond

Hello, I’m Debbie Richmond, and I’m here to support your organization’s journey towards enhanced professional development. With a focus on understanding your specific educational needs and goals, I am dedicated to helping you achieve excellence through our tailored corporate courses.

Specializations:

  • ICB Bookkeeping and Accounting
  • Business Management
  • Office Administration
  • All NATED Courses
  • Adult Education

My passion lies in working closely with individuals and businesses to support their growth and success. By partnering with me, you will receive personalized assistance designed to align with your organizational objectives and educational aspirations. Together, we can transform your professional development goals into reality.

Let’s collaborate to elevate your team’s skills and drive your business forward.

Contact number: 062 241 2694

Kenneth Chauke

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Hello, I’m Kenneth Chauke, an expert in Marketing Management and Human Resource Management with over a decade of experience in these fields. My extensive background and qualifications in Marketing Management allow me to provide top-notch support tailored to your organization’s needs.

Specializations:

  • Marketing Management
  • Human Resource Management

My detail-oriented approach and exceptional ability to connect with people enable me to understand and address your unique professional development requirements. Additionally, being multilingual and fluent in six languages, I am well-equipped to assist a diverse range of clients and facilitate effective communication across various cultural contexts.

If you’re seeking to enhance your marketing strategies or improve your HR practices, please get in touch with me. Together, we can drive your team’s success and achieve your business goals.

Contact number: 074 317 9119

Willem Manten

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Hello, I’m Willem Manten, and I’m excited to assist your organization in achieving its professional development goals. With expertise across a diverse range of qualifications, I am committed to helping you and your team reach new heights through our specialized corporate courses.

Specializations:

  • ICB (Institute of Certified Bookkeepers)
  • NATED Qualifications
  • Management Qualifications
  • IT (Computers)
  • Skills Qualifications

My passion for understanding individual needs and my dedication to supporting personal and professional growth set me apart. Additionally, my love for nature brings a unique perspective to my approach, fostering a balanced and holistic development environment.

If you’re looking to enhance your professional profile or improve your team’s skills, please get in touch with me. Let’s work together to unlock your potential and drive your business success.

Contact number: 061 418 4103

Accreditation Bodies

South African Qualifications Authority (SAQA)

This is the governing body overseeing the national qualifications framework. They maintain a register of Education and Training Quality Assurance (ETQA) bodies https://www.saqa.org.za/. Each ETQA body focuses on specific industries or sectors. 

Sector Education and Training Authorities (SETAs)

Each SETA focuses on a particular industry sector. Here is a list of all the SETAs:

  1. Agriculture Sector Education and Training Authority (AgriSETA)
  2. Banking Sector Education and Training Authority (BANKSETA)
  3. Chemical Industries Education and Training Authority (CHIETA)
  4. Construction Education and Training Authority (CETA)
  5. Culture, Arts, Tourism, Hospitality, and Sports Education and Training Authority (CATHSSETA)
  6. Energy and Water Sector Education and Training Authority (EWSETA)
  7. Education, Training and Development Practices Sector Education and Training Authority (ETDPSETA)
  8. Financial and Accounting Services Sector Education and Training Authority (FASSET)
  9. Food and Beverages Manufacturing Industry Sector Education and Training Authority (FOODBEV)
  10. Fibre Processing & Manufacturing Sector Education and Training Authority (FP&M SETA)
  11. Health and Welfare Sector Education and Training Authority (HWSETA)
  12. Insurance Sector Education and Training Authority (INSETA)
  13. Local Government Sector Education and Training Authority (LGSETA)
  14. Manufacturing, Engineering and Related Services Sector Education and Training Authority (MERSETA)
  15. Mining Qualifications Authority (MQA)
  16. Media, Information and Communication Technologies Sector Education and Training Authority (MICT SETA)
  17. Public Service Sector Education and Training Authority (PSETA)
  18. Services Sector Education and Training Authority (SERVICES SETA)
  19. Safety and Security Sector Education and Training Authority (SASSETA)
  20. Transport Education and Training Authority (TETA)
  21. Wholesale and Retail Sector Education and Training Authority (W&RSETA)

These SETAs cover various industries and sectors, providing training and development opportunities to enhance skills and promote employment within their respective fields.

QCTO (The Quality Council for Trades and Occupations)

The Quality Council for Trades and Occupations (QCTO) plays a role in accrediting training providers in South Africa, but it’s not the sole entity responsible. Here’s how the QCTO fits into the picture:

QCTO’s Role:

  • The QCTO focuses on the development and quality assurance of occupational qualifications within the Occupational Qualifications Sub-Framework (OQSF).
  • They don’t directly accredit training providers, but they set the standards that accredited providers must meet.

QCTO Website:

http://www.qcto.org.za/

References

Links to official government websites and documents

Skills Development Act (No. 97 of 1998)

Income Tax Act (No. 58 of 1962)

B-BBEE Codes of Good Practice

South African Revenue Service (SARS)

Sector Education and Training Authorities (SETAs)

  • For various SETAs relevant to different industries, visit the specific SETA websites, such as Services SETA

Department of Higher Education and Training (DHET)

Quality Council for Trades and Occupations (QCTO)

South African Qualifications Authority (SAQA)