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Employment Tax Incentive ETI 2017

So, can Employment Tax Incentive ETI still be claimed after 31 December 2016 and is it still valid in 2017? We have been following up with SARS to ensure we are up to date on this matter at all times. We have been advised that the review process is still in progress. Thus, Employment Tax Incentive ETI is still valid and should be applied in 2017 until further notice.

Employment Tax Incentive (ETI) was implemented with effect from 1 January 2014. Companies have been able to claim ETI for all of their qualifying employees. There have been many questions and uncertainties from various Employers, whereby some don’t completely understand how it gets calculated and this led to certain employers feeling anxious about the effect it might have on their Pay-As-You-Earn (PAYE) and their annual returns in the near future.

To add to this uncertainty, the incentive’s effectiveness was to be reviewed to determine whether to incentive (scheduled to end of 31 December 2016) will continue or not. The Employment Tax Incentive Act, Act No. 26 of 2013 also mentions that the incentive ends on 31 December 2016 – “an employer may not receive the employment tax incentive from 1 January 2017”.

Below is a short summary focusing on the main aspects of ETI followed by the calculations :

Should you have any further questions regarding the above, please feel free to contact us on 021 447 9565 or send us a email on payrollsupport@e2e.co.za and we will give you a call to assist.

What is Employment Tax Incentive ETI:

  • In short, the Employment Tax Incentive (ETI) was implemented to encourage employers to employ “young workers”.

Some of the benefits include :

  • Improving the skills and experience of young South Africans whilst also improving the high unemployment rate in our country.
  • Reducing the employers PAYE amount due to SARS on a monthly basis, with the incentive allowing the employer to reduce the Total Gross PAYE on their EMP201 with the combined ETI total calculated for all qualifying employees.
  • Employers can claim the incentive for all qualifying employees for a 24 month period.
  • Employees’ wages unaffected while the employer can reduce the companies PAYE liability.

Qualifying Employees :

  • Employee has a valid SA ID, Asylum Seeker permit or ID in terms of Refugee Act
  • 18 – 29 years old
  • NOT a domestic worker
  • Employee is not a Connected Person to Employer
  • “A connected person or relative means your spouse or anybody related to you or your spouse by blood in the third degree (e.g. great great grandfather etc.), and any spouse of these persons.”
  • Employed ON or AFTER 1 October 2013
  • Paid a wage of at least R2000 and not more than R6000
  • Where employee was employed for 160 hours in a month

Qualifying Employers :

  • Registered for Employees Tax (PAYE)
  • Is not a municipal entity
  • Is not in national, provincial or local government sphere
  • Not a public entity listed in Schedule 2 or 3 of the Public Finance Management Act
  • Not disqualified by the Minister of Finance due to the displacement of an employee or by not meeting the conditions as may be prescribed by the Minister by regulation.

Employment Tax Incentive ETI Calculations :

Some Employers might have experienced certain ETI errors when submitting their Employer Reconciliation Declaration (EMP501) due to certain validation rules.

It is crucial to ensure that your ETI has been setup correctly on your Payroll software, and that the calculations are accurate and correct. For more information regarding the setup on your Payroll please contact us on the details provided.

Below is a summary on how ETI is calculated based on the different formulas :

  • For the first twelve months of employment :

 

Remuneration Tax % RebateTax Rebate Amount
R0 – R200050%R 0 – R999.9
R2001 – R4000FixedR1000
R4001 – R6000Formula X = A –(B x (C-D)) X = tax rebate A = R1000 B = 0,5 C = Monthly Remuneration D = R4000R 0 – R999.9
  • For the For the second twelve months of employment :

 

RemunerationTax % RebateTax Rebate Amount
R0 – R200025%R 0 – R499.9
R2001 – R4000FixedR500
R4001 – R6000Formula X = A –(B x (C-D)) X = tax rebate A = R500 B = 0,25 C = Monthly Remuneration D = R4000R 0 – R499.9

We would like to ensure all of our clients that we will continuously monitor and provide updates with regards to the review process and possible “cut-off” date in which you are able to still claim ETI.

Regards

Anton

SARS E@syfile Download

For your convenience and courtesy of SARS we have the latest SARS E@syfile download available from the links below.  The SARS compliance environment is ever changing.  You have no choice but to stay current by applying the latest knowledge and most of all by ensuring that you have the latest software.

We audit and consult in Payroll and SARS Compliance instances.  For assistance with the SARS E@syfile Download Log a support request and we’ll contact you: Click Here

 

SARS E@syfile Download

Courtesy of SARS we have the latest SARS E@syfile download available here:

Download from our site:  Click HERE

If you have any problems with the above link then access the latest version of the SARS E@syfile Download directly from the SARS Website.

Go directly to the SARS E@syfile Download:  Click HERE

E@syFile™ Employer can be downloaded onto your desktop and all work can be done offline. You only go online when you are ready to submit returns or reconciliations and tax certificates to SARS or manage agent appointments (AA88) via eFiling.  Alternatively use the software to prepare a disc and submit your reconciliation declaration manually to a SARS branch. Include manual signed copies of the EMP501 and, where applicable, an EMP601 and EMP701.

Take note that you must backup your current PAYE information on your PC prior to installing this version as the installation may delete your current information.   Furthermore, any beta test version downloaded must be uninstalled prior to installing this version of e@syFile™ Employer.

Included are step-by-step guides to help you complete your PAYE reconciliation declaration (EMP501) and Monthly Employer Declaration (EMP201), as well as manage Agent Appointments (AA88) and get to grips with e@syFile™ Employer.

Remember, for time-saving and hassle-free submissions electronic filing is just a click away.

e@syFile™ Employer allows employers and/or payroll administrators  to :

  • Complete, submit and revise (if necessary) the Monthly Employer Declaration (EMP201)
  • Complete, submit and revise the Employer Reconciliation Declaration (EMP501)
    • The importing of tax certificates and the capturing the EMP501 can be done offline. You only go online when you are ready to submit to SARS.
  • Manage the Employer Account
  • Manage Third Party Appointments (AA88s)
  • Register employees using the Income Tax Registration (ITREG) function.

Top Tip: The latest Release Notes tells you about the changes which have been made in the software.

What’s new in E@syFile™ Employer?

Important SARS Submission Deadlines For 2015

With so many deadlines and projects running we at End 2 End Business Solutions find it vital to remind you of some important SARS Deadlines for the remainder of the year.

One of the most important being the Employer Annual Reconciliation Deadline.

This is for ALL employers to have their EMP501 Declarations which is also the submission of the Employees’ Tax Certificates.

The deadline for these submissions is 29 May 2015.

 

SARS EMP501 Graphic - Reconciliation

SARS EMP501 Graphic – Reconciliation

 

Important SARS Submission Deadlines For 2015

 25-05-2015 – Submission and Payment of VAT201 – Manual Registered Vendors
 29-05-2015 – Employer Annual Reconciliation ends
 29-05-2015 – Submission and Payment of VAT201 – Registered VAT eFilers
 05-06-2015 – Submission and Payment of EMP201
 25-06-2015 – Submission and Payment of VAT201 – Manual Registered Vendors
 30-06-2015 – Submission and Payment of VAT201 – Registered VAT eFilers
 01-07-2015 – Start of Tax Season for Individuals and Trusts
 07-07-2015 – Submission and Payment of EMP201
 24-07-2015 – Submission and Payment of VAT201 – Manual Registered Vendors
 31-07-2015 – Submission and Payment of VAT201 – Registered VAT eFilers
 07-08-2015 – Submission and Payment of EMP201
 25-08-2015 – Submission and Payment of VAT201 – Manual Registered Vendors
 31-08-2015 – Submission and Payment of VAT201 – Registered VAT eFilers
 31-08-2015 – Submission and Payment of Provisional Tax
 01-09-2015 – Employer Interim Reconciliation starts
 07-09-2015 – Submission and Payment of EMP201
 25-09-2015 – Submission and Payment of VAT201 – Manual Registered Vendors
 30-09-2015 – Submission and Payment of VAT201 – Registered VAT eFilers
 07-10-2015 – Submission and Payment of EMP201
 23-10-2015 – Submission and Payment of VAT201 – Manual Registered Vendors
 30-10-2015 – Employer Interim Reconciliation ends
 30-10-2015 – Submission and Payment of VAT201 – Registered VAT eFilers
 06-11-2015 – Submission and Payment of EMP201
 25-11-2015 – Submission and Payment of VAT201 – Manual Registered Vendors
 30-11-2015 – Submission and Payment of VAT201 – Registered VAT eFilers
 07-12-2015 – Submission and Payment of EMP201
 10-12-2015 – End of 16 Days of Activism against abuse
 24-12-2015 – Submission and Payment of VAT201 – Manual Registered Vendors
 31-12-2015 – Submission and Payment of VAT201 – Registered VAT eFilers

 

Please let us know if you need any assistance with your Tax Year End EMP501 and Tax Certificate Submissions.

E-mail: francois@e2e.co.za

The Most Important 2015 Event On Your Payroll Calendar

Annual Payroll Tax Seminar The stage is set for the much anticipated 2015 Budget changes. As always the Annual Payroll Tax Seminar promises to be interesting and informative.

The final changes to the legislation that are effective from March 2015 will be discussed in detail in the seminar, along with the 2015 Budget proposals and a glimpse into what the future holds for payroll matters.

Some topics that will be included:

– Retirement Reforms – where are we now and where are we going?
– PAYE law changes – residential accommodation, company cars, restraint of trade, Income Protection schemes.
– Labour Law changes – overview of the Employment Equity changes
– PAYE Administration – tax certificates and related issues.
– Employment Tax Incentive – calculation changes and refunds.
– The 2015 Budget proposals – this should be interesting….
– AA88 Penalty Notices – changes that employers must comply with.
– Future prospects

Book your seat now and let payroll expert Rob Cooper explain the legislation in layman’s terms to ensure you are ready for the new tax year.

Duration:
Registrations: 08h30 – 09h00
Seminar: 09h00 – 12h30

Investment per delegate:
Price: R2, 217 Incl. VAT

Dates, venues & areas

  • 02 March Sage Conferencing, Woodmead
  • 03 March Silverstar Casino, Muldersdrift
  • 04 March Emperors Palace, East Rand
  • 05 March Sage Conferencing, Woodmead
  • 06 March Centurion Lake Hotel, Centurion
  • 09 March Gateway Hotel, Durban
  • 10 March Hemingsway Casino Hotel, E.L
  • 11 March N.M. Metropolitan University, P.E
  • 12 March Sanlam Head Office, Cape Town
  • 13 March Crystal Towers Hotel, Cape Town
  • 16 March CSIR, Pretoria
  • 17 March Silverstar Casino, Muldersdrift
  • 18 March Emperors Palace, East Rand
  • 19 March Quest Conference Estate, Vanderbijlpark
  • 20 March Windmill Casino, Bloemfontein
  • 23 March Sage Conferencing, Woodmead
  • 26 March Meropa Casino, Polokwane
  • 27 March Emnotweni Sun Hotel, Nelspruit
  • 30 March Gateway Hotel, Durban
  • 31 March Sanlam Head Office, Cape Town
  • 01 April Sage Conferencing, Woodmead

Booking Details
To book please send an email containing the Name(s) or the Delegate(s) attending, The Date Attending as well as the Company name, Serial Number and Telephone Number to customercare@e2e.co.za.

Payment: Deposit/ Transfer

Simply email customercare@e2e.co.za to book and we’ll do the rest!


 

 

Terms and Conditions: Seats are allocated on a first-come-first-served basis. Attendee substitutions must be made at least 2 working day prior to the seminar commencement date. Cancellations – strictly NO cancellations accepted. Signing of this form, faxed or emailed, will be regarded as a confirmed booking. Note that irrespective of attendance, full fees will be payable Reschedules are only accepted upon written notification at least 2 working days prior to the seminar commencement date failing which a R150 fee will be levied. Sage Pastel Seminars reserves the right to cancel any seminar should there be an insufficient number of delegates booked for that event.

How to Register Employees for Income Tax in 5 Easy Steps

Income Tax Numbers have become as important as ID or passport numbers in your Sage Pastel Payroll. When hiring a new employee, whether foreign or local, independent contractor or freelancer, permanent or temporary, PAYE Employee or below the income tax threshold – if you pay them, they need to be registered in your Sage Pastel Payroll.

While it is likely that an employee will already be registered for income tax from their previous employer’s EMP501/IRP5/IT3(a)submission, when this is not the case, the responsibility falls on the employer to register the employee for income tax with SARS.

Fortunately, SARS e-filing assists in bulk registering all employees not previously registered for income tax numbers. You can now register employees online using your company SARS e-filing profile.

How to register employees using SARS e-filing:

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If you get the message “Individual Already Registered” when trying to register or in the case of an employee not knowing their income tax number, the employee should simply phone the SARS call centre on 0800 00 7277 who, upon verification of personal particulars on record, will then furnish the individual with their income tax number.

It is important to note that the employer cannot phone SARS and request any Employees’ Income Tax number.

I hope this serves both as advice to all employers to get their employees registered and also as an aid in doing so!

Remember, for any advice or Sage Pastel Payroll queries, simply contact Francois for immediate support.

francois@e2e.co.za