Performing an Employment Tax Incentive (ETI) claim calculation for your qualifying employees may seem daunting to many, but it's pretty straightforward. And it becomes even easier with each passing month.
Here are 6 steps you can follow to easily calculate and submit your monthly ETI claim...
We assume that you're an employer who's not disqualified from claiming ETI, and that your current payroll month is 20 working days.
Step#1: Continued qualifications
You mustn't accept that if an employee qualifies in one month, she'll qualify in the next.
You must ensure that they qualify each and every single month for the ETI.
Step#2: ETI calculation
Use the employee records as well as the ETI claim tables
to accurately calculate the ETI claim of each qualifying employee.
If any staff work is less than one month, you must first determine which bracket on the table
they fall into, after which you must prorate their claim.
Step#3: Rollover amounts
The Employment Tax Incentive Act can help you:
· Legally claim a tax incentive when you hire temporary employees
· Claim a tax incentive on learnerships
· Manage the risks and penalties involved with the Employment Tax Incentive Act
Click here to find out how
After you have added up the ETI claim of all your qualifying employees, as calculated in Step 2, ensure that you add it to any rollover amount.
Step#4: Tax compliance
Ensure you are fully tax compliant. In other words, make sure you submit returns before the deadlines and that you've paid all outstanding tax etc.
Do your payroll calculations as you always have and calculate the total PAYE which you owe SARS.
Calculate how much of your ETI claim you can use against your monthly PAYE.
Remember that any excess ETI claim is rolled over into the next month.
Step#6: EMP201 return
Fill out the EMP201 form as you normally would, but make sure you also include your ETI claim amount in the correct section.
*To learn more on each of these points, what qualifies an employee for ETI and what the ETI Claim table amounts are, simply page over to chapter E 06
in your Practical Tax Loose Leaf Service
Alternatively, you can click here
to order your copy today.