How does skills development levy work

You can register once for all different tax types using the client information system. Top Tip: Where an employer expects that the total salaries will be more than R over the next 12 months, that employer becomes liable to pay SDL. If an employer becomes liable, they need to register for SDL. The levies are distributed via SETA. Businesses and Employers. Tax Practitioners. Customs and Excise. Skills Development Levy. What is SDL? The funds are to be used to develop and improve skills of employees.

Who must pay SDL? However, there are a few exceptions made for certain employees, such as interns or students concurrently enrolled in a local university and are employed in that university under an approved training programme.

As a starting point, the SDL is payable at a rate of 0. After tabulating the SDL payable for each employee, add up the total amount of SDL payable for your company and round this figure down to the nearest dollar. If convicted, the employer will be liable to a penalty equal to the amount of the SDL due and unpaid. If you have difficulties making payment, you can request to pay through instalment payments. The register should contain the following details:.

Having properly updated payment records are necessary not only to ensure that the monthly SDL payments are correct, but also because officers from SSG may also conduct audits on SDL payments.

Apart from the SDL, there are also other compulsory contributions or payments that employers have to make. The following sections will briefly detail these compulsory payments.

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