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Chapter 14
Related Sections
1
INTRODUCTION
2
Categories of SMMEs
3
TYPES OF BUSINESSES
4
Sole trader or sole proprietor (Owner)
5
Partnership
6
Close Corporation (CC)
7
Company
8
Co-operatives
9
REGISTRATIONS AS A NEW EMPLOYER
10
Summary of the statutory registrations required for employers
11
Employee’s tax – PAYE
12
Unemployment benefits (UIF)
13
Skills Development Fund and Levy
14
Compensation for Occupational Injuries and Diseases (COIDA)
15
Occupational Health and Safety
16
Formalising the employment relationship with employees
17
INCOME TAX
18
Provisional tax
19
How to register as a taxpayer
20
What happens if you do not pay tax or pay late?
21
SARS eFiling
22
VALUE-ADDED TAX (VAT)
23
VAT vendors
24
Who should register as a VAT vendor?
25
How do you register for VAT?
26
How does VAT work?
27
BUSINESS LICENCES
28
What types of business need a licence?
29
How to get a business licence
30
Does the business licence have to be renewed?
31
What happens if a person sells food and does not get a business licence?
32
Informal trading and hawking
33
EXPORTING AND IMPORTING
34
Permits for exporting and importing
35
Goods that are subject to export and import controls
36
Registering as an exporter and importer
37
ADMINISTRATION SKILLS FOR SMALL BUSINESSES
38
Bookkeeping
39
Payroll and personnel records
40
Other important records
41
Filing
42
Filling in forms
43
SUPPORT FOR SMMEs
44
The Small Enterprise Development Finance Agency (SEDFA)
45
Thusong Service Centres
46
National Small Business Advisory Body
47
PROBLEMS
48
Problem 1: What type of business to start
49
Problem 2: Starting a business which needs a business licence
50
Problem 3: Is being a VAT vendor worth it?
51
Problem 4: Drawing up a business plan
52
MODEL LETTER
53
Model letter of appointment
54
CHECKLISTS
55
Checklist: When starting a business
56
Checklist: Business Licence Types

Skills Development Fund and Levy

The Skills Development Levy (SDL) is an amount of money that employers have to pay to SARS for skills development of employees.

WHO DOES THE SDL APPLY TO?

The Skills Development Levies Act applies to all employers except:

  • The public service
  • Religious or charity organisations
  • Public entities that get more than 80% of their money from parliament
  • Employers –
    • whose total pay to all its employees is less than R500 000 per year; and
    • who do not have to register the employees with SARS for tax purposes (PAYE)

REGISTERING WITH SARS

Employers who are required to pay a skills development levy must register with SARS.

PAYING THE SDL

Employers must pay a levy of 1% of the total amount paid in salaries to employees (including overtime, leave pay, bonuses, commissions and lump sum payments) every month. The levy may not be deducted from the employees’ pay. The levy must be paid by the 7th day of each month.

DISTRIBUTING THE SDL FUNDS

SARS pays 80% of the total levy money paid by employers over to the Sector Education and Training Authorities (SETAs). When employers register, they must tell SARS which (SETA) they belong to. Employers who fall under more than one SETA must consider the following when deciding which one is best for their workplace:

  • Composition of their workforce
  • Pay of the different employees
  • Training needs of the different employees.

Employers can claim back from the SDL up to 70% of the levy, provided they can

prove that they have undertaken training for their staff. SARS will supply the correct forms to fill in (SDL201 return form).

The Skills Development Fund gets 20% of the money, which is used for special training.

Payments of employees’ tax, SDL and UIF contributions must be paid together into the SARS account and must be reflected correctly and separately on the EMP 201 form in order to ensure that payments are correctly allocated.

For more information on the Skills Development Fund and Levy and how to register, view the following website: www.labour.gov.za and click on ‘Skills Development Levy’. (See Skills Development Act)