According to a report on The HR Portal, the Employee Tax Incentive Bill is one of many programmes that falls under the umbrella of government's youth employment strategy.
Essentially, it 'proposes a youth wage subsidy aimed at encouraging employers, through tax incentives, to create job opportunities for young people,' explains the site.
Sounds great, and, on the surface, it is. But many leading experts are worried it'll lead to employment bias as the tax incentive is only available if you employ people aged 18 to 29 years old.
After all, as an employer, you'll be able to deduct the incentive amount for which you qualify from the employees' tax you'd normally have to pay SARS, adds Fin24.
Will your new employee qualify for this tax incentive?
Reports suggest that qualification is two-fold. First, your company must qualify and then so must your employee.
Do you qualify under the Employee Tax Incentive Bill?
As accsys.co.za explains:
Employers who are registered to withhold and pay employees tax qualify for this tax incentive as long as they're not:
In addition, your employee only qualifies if:
Stay tuned. As more information about the working of the Employee Tax Incentive Bill comes to light, we'll be sure to bring it to you.