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 big question is: Does the Bill apply to your company?
The Employment Tax Incentive Bill applies to you if you meet these requirements
The Bill proposes that the employment tax incentive apply only to employers that are registered with SARS for Pay As You Earn (PAYE) purposes.
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?
Only certain employees will qualify. 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.
Enjoyed this article? Subscribe to receive these free articles in your inbox daily.