2. PRESENTATION TO JOINT CHAMBER INDUCTION – 09 February 2017
SKILLS DEVELOPMENT LEVIES ACT, PRESENTED BY: FARHAD MOTALA

3. OUTLINE OF PRESENTATION - SDLA
Administration, imposition and recovery of Skills Levy
Recovery of levy by SETA
General Provisions

4. Administration of the SDLA
Administration of Act – Director-General (DG)
Commissioner (SARS) – Administer the collection of levy payable
DG may delegate any part of administration to CEO of a SETA in writing
DG may at any time withdraw delegation in writing

5. Imposition of the Skills Levy
Every Employer must pay a skills development levy from
1 April 2000 at a rate of 0.5% of total remuneration
1 April 2001 at a rate of 1% of total remuneration
Total Remuneration defined in Income tax act
Exemptions – Pensions, annuity allowance, retirement allowance, Unemployed Learner on contract of employment
The Minister may by notice in Government Gazette impose a skills development levy on municipalities
Minister may determine higher rate in consultation with minister of finance and publish in gazette

6. EXEMPTIONS AND REGISTRATION
Public Service employer
Employer below levy threshold – > R500,000 total remuneration over 12 month period
Religious, charitable organisations and funds in terms of Section 10 of income tax act
National or public entity were more than 80% of expenditure received from voted funds
Employer must apply to commissioner for registration and indicate jurisdiction of applicable SETA
If > 1 jurisdiction – employer selects SETA based on composition of workforce / amount payable to different SETAS and training needs of employees

7. Payment of Levy
Employers pay over levy to SARS – monthly EMP 201 return
Refunds must be effected by SARS commissioner
Commissioner SARS / DG allocates to SETAS
2 months lag from employers paying to receipt of levies by SETA

8. Distribution of Levies
20% of levy Interest and Penalties – National Skills Fund (NSF)
80% of levy, Interest and Penalties – SETA
S14 of Skills Development Act Distribution by SETA:
– 20% (Mandatory Grant)
– 49.5% (Discretionary Grant)
– 10% (Administration)
– 0.5% (QCTO)

9. Recovery of levies by SETA
SETA may recover levy from employer – instituting action in magistrates court.
DG may appoint inspector to assist SETA and ensure compliance with SDLA
Inspector may enter premises with consent or warrant
Employer has duty to respond to all requests of inspector
Section 68 to 73 of BCEA applies to – Monitoring, enforcement and legal proceedings due to Non compliance

10. General provisions - Offences
Failure of employer to register with SARS
Failure to pay Levy
Furnishing of false information
Failure to submit, disclose, respond or give evidence
Obstructs any official carrying out duties in terms of the Act

11. THANK YOU