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What does the new Employee Tax Incentive Bill mean for your business?
Unemployment is a big problem in South Africa. So it's no wonder that government has finally stepped in to reverse the high levels that affect the youth. How? By making sure its new Employee Tax Incentive Bill comes into effect. And it will, the minute 2014 ushers in. Here's what you need to know [read more...]Research finds that absenteeism is the reason South Africa's losing its competitive edge
New research has found that South Africa's losing its competitive edge. And it's all thanks to absenteeism. That's just the tip of the tip of the iceberg. There are other worrying trends when it comes to sick leave abuse in the workplace. Here are the details of the study... [read more...]New B-BBEE codes unveiled! Find out what this means for your business...
Trade and Industry Minister Rob Davies has unveiled the new Broad-Based Black Economic Empowerment (B-BBEE) codes of good practice. Davies announced the new codes yesterday at the B-BBEE summit in Midrand. Reports suggest the codes will be published in the Government Gazette on October 11. Read on [read more...]by FSP Business, 12 December 2013 |
As mentioned, the Employment Tax Incentive Bill has been approved by the National Assembly.
Government says the Bill is aimed at reversing high levels of youth unemployment.
'The Bill proposes a youth wage subsidy aimed at encouraging employers, through tax incentives, to create job opportunities for young people aged from 18 to 29.'
SABC reports that the Bill could see a tax break of around R900 for employers for every person hired at R2000 per month for 24 months.
The big question is: Does the Bill apply to your company?
The Employment Tax Incentive Bill applies to you if you meet these requirements
According to the , the employment tax incentive is not available to all employers.
The Bill proposes that the employment tax incentive apply only to employers that are registered with SARS for Pay As You Earn (PAYE) purposes.
This means if you have a legal obligation to withhold and pay tax on behalf of your employees, through the PAYE system, you'll be eligible for the tax incentive.
The Institute explains that due to the fact that the incentive is aimed at private sector employers, public entities aren't eligible for the employment tax incentive, unless specifically designated by the Minister of Finance, by way of notice in the Government Gazette.
The employment tax incentive will also apply within Special Economic Zones (SEZs) and designated industries where the age restrictions will not apply.
The employment tax incentive is further limited to an eligible employer hiring a 'qualifying employee'.
Employment Tax Incentive Bill: Who are qualifying employees?
. This means a number of criteria must be met first:
That's not all.
Government plans to introduce the tax incentive in January next year.
Knowing whether or not the Employment Tax Incentive Bill applies to you will help ensure you comply by taking on more young people in the age group 19 to 29 years.
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i work for Health department as an admin clerk, i am currently on level 4, but i just got some info that one clerk has been placed on level 6 through submission process, can i file a grievance so that i can also be ... [see the answer]