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Subscribe to this list via RSS Blog posts tagged in ETI

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
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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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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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
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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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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Retail Association - ETI (employment tax incentive) conference 2014

From the presentation:

Youth unemployment is extremely high by international standards. 2.4 million under the age of 30 are unemployed.

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Posted by on in ETI News

The draft bill on employment tax incentive:

The Draft Employment Tax Incentive Bill gives effect to the announcement by the President in his 2010 State of the Nation Address, and the 2010 Budget, that government will table proposals to subsidise the cost of hiring younger workers. The draft bill also gives effect to the 2013 Budget.

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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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