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Have you claimed this incentive yet? You only have until 31 December 2016 to do so

by , 28 November 2016
Have you claimed this incentive yet? You only have until 31 December 2016 to do soDo you have employees between the ages of 18 and 29 years old? Do they earn less than R6 000 per month?

You can benefit from the Employment Tax Incentive.

This incentive is only available until 31 December 2016. So if you don't act now and claim these incentive amounts from PAYE as at 31 December 2016 you might end up losing them!

Read on to see how you can claim from this incentive.

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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  

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How to claim at least R39 000 through the Employment Tax Incentive Act


It's really easy. You claim the incentive by decreasing the amount of PAYE you have to pay to SARS for each of your qualifying employees.
 
You must be registered for Employee's Tax with SARS and make sure your tax affairs are in order to qualify. If not, SARS will disallow your claims.
 
Fill in the Employment Tax Incentive (ETI) field on your employer's monthly EMP201 when you submit it to SARS.

Now let's take a look at how you determine the amount you must deduct from PAYE.


How to make yourself invisible to SARS

The key to reducing how much tax you pay is staying off SARS' radar.

SARS has conducted R1.8 million audits. They've added 100s of new tax collectors and auditors to their payroll and each one has his own collection targets to meet.

This means two things:
  1. If you're not compliant, your chances of an audit this year have just doubled, and
  2. You will pay more in penalties.

But there are 139 perfectly legal ways for you to make yourself invisible to SARS. Here's how…

 

Five steps you must follow to determine the amount you must deduct from PAYE
 
Step #1 - Identify all your qualifying employees for the relevant month (see the side bar for a handy checklist).

Step #2 - Work out the right employment period for each employee (either the 1st 12 months or the 2nd 12 months). See the table below to find out which amounts to use.

Step #3 - Calculate each employee's monthly remuneration.

Step #4 - Calculate the total incentive you can claim for each of your qualifying employees.

Step #5 - Add up the total amount you can claim for all your employees. 

Here are two examples you can use to calculate the incentive...


Finance and Payroll managers!


In just three hours you'll know all the answers like:


  • What is the Employment Tax Incentive Act and how can I benefit?
  • Which employers qualify for the incentive and which employees should I employ to maximise my claim?
  • What are the anti-avoidance provisions that I must know?
  • How do I avoid being disqualified from receiving the employment tax incentive?
  • How do I calculate the amount of my employment tax incentive?
  • How do I claim my employment tax incentive?
  • When won't the employment tax incentive be available to me anymore?
  • How will the roll-over amounts and reimbursements affect my company?
  • How do the various Tax Acts all work together?
  • Are there penalties and how do I manage business risks associated with my claim?
  • What are the key business items I need to make on recruitment, policies, risk management to maximise the benefit?

Find the answer to these and many other questions about the Employment Tax Incentive Act in your copy of the Employment Tax Incentive Act DVD

Here's how to calculate the incentive



Let's look at two examples.
 
Example 1

 
You have 5 employees who earn the following:
Employee 1 – R2 000
Employee 2 – R3 500
Employee 3 – R4 500
Employee 4 – R5 000
Employee 5 – R6 500
 
Here's what you can claim:




That's almost R39 000 a year you can claim (R3 250 x 12 months).
 
Example 2
 
You hire 5 new employees and they earn the following monthly salaries:
 
Employee 1 – R2 000
Employee 2 – R3 500
Employee 3 – R4 500
Employee 4 – R5 000
Employee 5 – R6 500
 
They started working for you on 17 March 2014 and you give them a portion of their full month's salary because they only start half way through.
 
March has 20 working days and your new employees only work 10 of these. You must adjust their pay accordingly.
 
Employee 1 – R2 000 X 10/20=R1 000
Employee 2 – R3 500 X 10/20=R1 750
Employee 3 – R4 500 X 10/20=R2 250
Employee 4 – R5 000 X10/20=R2 500
Employee 5 – Does not qualify because he earns more than R6 000 per month


Here's what you can claim:



This sounds like a great incentive but you need to be aware of the penalties you can face.
 
But, watch out for the penalties. The Employment Tax Incentive Act DVD will show you what penalties you can expect.

Because the deadline is just around the corner, and we don't want you to miss out on the savings you can get from this incentive, we are offering you a 50% discount on the Employment Tax Incentive Act DVD. Click here to claim your copy.



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