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Posted by on in ETI News
Tax incentives create jobs in South Africa Thousands of new jobs was created due to tax incentives. The department of trade and industry approved over R20 billion in finance during 2016 / 2017.  27 000 new jobs was created and it is estimated 108 000 indirect jobs. These incentives have helped to keep jobs in industrial sectors. The employment tax incentive provides a monthly cash benefit to those who qualify. Talk to us today to find out how we can unlock and maximise the cash benefits for your business! All our clients enjoy the benefit of compliant incentives and tax processes. With over 40 years corporate, business tax and incentive experience you know you are in good hands. We focus on maximizing benefits for our clients through innovative value adding products and business advisory services. Get your full ETI benefit. Contact us today.  ...
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Posted by on in ETI News
Did you know? ETI back claims to end Feb 2017 I am not sure what the ETI is?  The ETI is an incentive that was introduced by Government to encourage employers to hire young unskilled labour. The ETI allows for all races and genders and uses basic criteria to determine whether you qualify for an immediate monthly cash benefit. I have heard about ETI and would like to find out how it can unlock cash for my business. There are some basic requirements that you should be aware of before proceeding. We value your time so before you continue reading answer only the following questions;- Read more here - Most asked questions about ETI (employment tax incentive)....
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Posted by on in ETI News
Employment Tax Incentive Extension The Employment Tax Incentive (ETI), is an incentive from government to assist with the employment of youth in South Africa. The incentive started in 2014 and is available to businesses in South Africa. R6.3 billion was claimed between January 2014 and February 2016. ETI claims increased in the last half of 2015. ETI supported around 15 per cent of all jobs in the entire youth cohort of 18 to 29 year olds, this is 645 973 people. The incentive is focused on people between the ages of 18 and 29, earning less than R6000 per month. In a draft Taxation Laws Amendment Bill, 2016, it is suggested to extend ETI to February 2019. We can assist with your ETI. Contact us now....
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SARS might discontinue claims on historic ETI the end of February 2017

Since January 2014 companies have been able to claim ETI for qualifying employees.

The process of claiming back from SARS is often misunderstood or viewed as too daunting by companies and therefore not worth the effort. 

In recent months, it has been reported that SARS might discontinue claims on historic ETI the end of February 2017. The time for companies is therefore running out, as this means that all historic ETI will be lost. 

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Posted by on in ETI News
ETI R20 million cap removed An amendment was suggested on the Employment Tax Incentive where a company will be capped at R20 million for an ETI claim. Finance Minister Pravin Gordhan suggested the cap be removed from the amended tax bill. The employment tax incentive is available to all businesses. There are specific requirements to be able to claim. If you need assistance with your ETI claim, please contact us.  Treasury has determined 1 out of ever 10 jobs in South Africa can be attributed to the ETI initiative.  The ETI has been extended for another 2 years. Other changes are under review regarding the ETI. We assist companies to be compliant with the Employment Tax Incentive. ...
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Posted by on in ETI News
What is the Employment Tax Incentive (ETI)? The ETI (employment tax incentive) is an incentive aimed at encouraging employers to hire young and less experienced work seekers. The ETI reduces an employer's cost of hiring young people through a cost-sharing mechanism with government, while leaving the wage the employee receives unaffected. Businesses are looking for an extension on ETI, currently under review as it is set to expire end of 2016.   There are a couple of key factors under review regarding ETI. The ETI is to be extended for another 2 years. Government is considering the continuation of ETI. A cap of R20 million on the value might be set on which an employer can claim. The employment tax incentive main goal is to stimulate employment for people between the ages of 18 and 29 years. According to some stats ETI has assisted around 646 000 youth jobs during 2014 and 2015. The youth jobs is 5.7% the individual tax base in...
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Posted by on in ETI News
ETI legislation Treasury released a media statement 25 September 2016 with proposed changes to the current ETI legislation.  We have informed all of our clients so that they can make the necessary preparations and align their ETI strategies with the proposed changes. It will also give ETI claimants the chance to make submissions to SARS. The public have only until the 10 October 2016 to comment on these changes. The most important of these proposed changes are: The ETI will continue until 28 February 2019. The ETI rollover amounts will be reduced to nil effective 1 October 2016.  ETI claimed for anyone entity may not exceed R20 million rand for any one tax year. These changes will have a material impact on historic and future ETI claims. We are working together with our existing clients to maximise their ETI benefits in terms of these changes. Contact us for ETI Youth Wage Subsidy  ...
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(ETI) would be renewed next year, Finance Minister Pravin Gordhan promised At a Johannesburg Chamber of Commerce and Industry breakfast event, the chief financial officer of Servest, Peter Walsh, asked Gordhan for clarity on the subsidy, saying that his company had claimed it for 17 000 employees since it was implemented at the beginning of 2014. Gordhan replied by saying that the ETI would be extended, but that its effects were being studied with a view to possibly changing how it works. The ETI provides a subsidy of up to R1 000 a month to employers of people aged between 18 and 29 earning less than R6 000 in their first formal jobs. This falls to R500 in their second year on the job and falls away in the third. It effectively introduces a two-tier labour market that makes young workers cheaper without actually reducing their wages. Read the full article here: http://city-press.news24.com/Business/gordhan-youth-wage-subsidy-will-continue-20160729...
Tagged in: ETI Youth Wage Subsidy
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Understanding the Tax Implications of the Youth Wage Subsidy - Engineering News Altough the controversial Youth Wage Subsidy, made possible through the Employment Incentive Act has been with us for a while, many businesses don’t realise that they should be receiving monetary benefits from it. With its extension beyond 2016 in doubt, businesses have limited time to apply for an ETI reimbursement. The Youth Wage Subsidy, which came into being through the Employment Incentive Act No 26 of 2013, allows employees to claim a deduction on the amount of PAYE they have to give to SARS based on the number and salary of qualifying employees, provided that certain conditions are met. Since its inception in January 2014, the Employment Tax Incentive been both fiercely criticised and praised. It will no doubt again draw the political spotlight towards it before it ether comes to an end in December 2016 or is extended. Read more: Understanding the Tax Implications of the Youth Wage Subsidy - Engineering...
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Posted by on in ETI News
Who Qualifies For the ETI? Although the ETI provides potential benefits there are a number of criteria that the employer must meet.  Step 1 - It is important to ensure that the employer qualifies to claim ETI and has qualifying employees. For the most part - provided the employer is registered for PAYE, is not a sphere of government, and does not fall foul of any of the anti-avoidance measures - they will be eligible an employer. Step 2 - The employer must be ETI Tax compliant on the day of the submission of the ETI claim via the Monthly Employer Declaration (EMP 201) form. Step 3 –The employer needs to claim the ETI deduction for "qualifying employees” – these are employees who meet the following criteria: they must be employed on or after 1 October 2013; the employee must have a green ID book or valid asylum seekers work permit; employees must be younger than...
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Posted by on in ETI News
Youth Wage Subsidy Tax Implications Although the controversial Youth Wage Subsidy, made possible through the Employment Incentive Act (EIA) has been with us for a while, many businesses don’t realise that they should be receiving monetary benefits from it. With its extension beyond 2016 in doubt, businesses have limited time to apply for an ETI reimbursement.  The Youth Wage Subsidy,which came into being through the Employment Incentive Act No 26 of 2013 (ETIA),allows employers to claim a deduction on the amount of PAYE they have to pay over to SARS based on the number and salary of qualifying employees, provided that certain conditions are met. Since its inception in January 2014, the Employment Tax Incentive (ETI) has been both fiercely criticised and praised. It will no doubt again draw the political spotlight before it either comes to an end in December 2016 or is extended. Read full article here: Understanding the Tax Implications of the Youth Wage...
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The Employment Tax Incentive & Learnership Allowance (tax incentive) review This survey aims to gather information on the effects of these programmes and users' experiences. The results of the survey will inform future tax policies. We ask questions about basic business characteristics, basic hiring and training practices in your organisation, and use of tax incentives. There is a separate section of questions for tax practitioners / payroll authors / incentive advisors. If you do not think that you are in a position to answer these questions, please share the link to this survey with a colleague who is better placed to respond. All information from the survey will remain anonymous and will not be used for tax administration purposes. Complete the Employment Tax Incentive & Learnership Allowance (tax incentive) survey here....
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Youth Wage Subsidy (ETI) - Article in Tax Talk The Youth Wage Subsidy,which came into being through the Employment Incentive Act No 26 of 2013 (ETIA), allows employers to claim a deduction on the amount of PAYE they have to pay over to SARS based on the number and salary of qualifying employees, provided that certain conditions are met. Since its inception in January 2014, the Employment Tax Incentive (ETI) has been both fiercely criticised and praised. It will no doubt again draw the political spotlight before it either comes to an end in December 2016 or is extended. Get your copy of Tax Talk and read the full article on Youth Wage Subsidy on page 38....
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Posted by on in ETI News
Employees Tax, Payroll and e@syfile

Continuous compliance with employees tax in practice is a daunting tax, posing many risks. 

This event will be a comprehensive and practical guide to complying with employees tax obligations. It will inter alia review critical changes to the relevant tax legislation in the past fiscal year – including changes to the tax treatment of retirement - empowering delegates with confidence to successfully file EMP201s and 501s. 

Tagged in: CPD EMP201 Employees Tax
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Employment Tax Incentive - Practical Workshop This workshop will be practical and includes an actual ETI re-imbursement case study. This session is ideal for corporates, Payroll Managers, HR Managers, Financial Managers, Accountants, Consultants and Auditors. It will be an intensive one day session helping you to claim your ETI benefits successfully. Your ETI strategy should include how far back can you claim, what to claim, how much to claim, when to claim and risk management . You will have the opportunity to interact directly with the speaker. Book your sear here. Limited space for the ETI Practical Workshop....
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Posted by on in ETI News
Advantages of tax incentives There are numerous advantages for tax incentives. Tax incentives are many times a government initiated program to assist businesses (small, medium or large corporations), to drive specific industries or sectors.  These incentives can be cash based where a company gets a cash injection or can be a subsidy, or some other form of benefit. Each tax incentive will have their own requirements, regulations, processes, and documents. Some advantages of tax incentives are: Additional funds for the business to improve cash flow Ability to compete in a wider or even international market Possible capital investment Investment in people Improved business operations Access to skills and additional development Interested in the employment tax incentive? Contact us today....
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Posted by on in ETI News

Here is a quick video on the Employment Tax Incentive Calculator. Your ETI calculation is key when claiming. It must be correct. We offer an ETI Health Check. This ETI health uses an advanced ETI calculator (software we developed) to calculate your ETI claim.  Interested in a ETI Health Check? Contact us today....
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ETI Audit – a health check on your ETI numbers

ETI is a self-managed tax incentive, the first of its kind in South Africa. Like PAYE you are responsible for ensuring the right figures are submitted. 

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Amendment of section 4 of Act 26 of 2013, as amended by section 113 of Act 43 of 2014 141. (1) Section 4 of the Employment Tax Incentive Act, 2013, is hereby amended by the substitution in subsection (1)(b) for subparagraph (i) of the following subparagraph: ‘‘(i) where the employee is employed for [more than] at least 160 hours in a month, the amount of R2 000 in respect of a month; or’’. (2) Subsection (1) comes into operation on 1 January 2016. Amendment of section 10 of Act 26 of 2013, as amended by section 118 of Act 43 of 2014 142. (1) Section 10 of the Employment Tax Incentive Act, 2013, is hereby amended by the substitution in subsection (4) for paragraphs (a) and (b) of the following paragraphs: ‘‘(a) has failed to submit any return contemplated in section [8(1)(a)] 8(a); or (b) has any tax debt contemplated in section [8(1)(b)] 8(b).’’. (2) Subsection (1) is deemed to have come into operation on 1 January 2014. REPUBLIC OF SOUTH AFRICA EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT...
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Making a difference

The reason we help companies claim ETI is because we want to create opportunities for youth to find employment. If we can employ the youth, over 40% of whom are unemployed, we will make a significant difference in improving their lives and the state of the economy. Read more about ETI

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