Where any one of the Employer’s Employees are liable for normal tax AND there are reasonable grounds for believing that the total amount paid / payable by the Employer to all its Employees during the following 12 month period will NOT exceed R500 000, such Employer will be obliged to register for Employees’ Tax (PAYE) and UIF purpose with SARS. If it is anticipated that the total amount paid / payable will exceed R500 000, the employer will be obligated to register for SDL.
Registration takes place when submitting the application to SARS unless there is a review on the application.
What is Unemployment Insurance Fund
The UIF has been established in order to provide short term relief to workers when they become unemployed or are unable to work because of illness, maternity or adoption leave and also to provide relief to the dependents of a deceased contributor in terms of the UI Act.
The UIF provides five types of benefits:
- Unemployment benefits;
- Illness benefits;
- Maternity benefits;
- Adoption benefits;
- Dependents’ benefits.
What is Skills Development Levy
- The Skill Development Levy Act ( the SDL Act), established a compulsory levy scheme for the purpose of funding education and training as envisaged in the Skills Development Act, No. 97 of 1998. The SDL Act came into operation on 1 September 1999 and the levy became payable with effect from 1 April 2000 and is payable by employers on a monthly basis.
- The Minister of Higher Education and Training in conjunction with the various Sector Education and Training Authorities (SETAs) is responsible for the administration of the Skills Development Act No. 97 of 1998. Any enquiries regarding the levy grant scheme must therefore be referred to the relevant SETA or the Minister of Higher Education and Training.
- The Commissioner for the South African Revenue Service (SARS) is responsible for administrating the SDL Act in so far as it relates to the collection and the payment of such levy by employers to the Commissioner