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Here's how to calculate your ETI claims quickly and easily using the SARS tax tables

by , 02 December 2016
Here's how to calculate your ETI claims quickly and easily using the SARS tax tablesSo, after having ticked off a maze of conditions, it's now safe to say that your employee qualifies for the Employment Tax Incentive (ETI). You're now ready to start calculating it.

But how exactly do you do this? With all the formulas, percentages and amounts (which are all dependent on specific 'periods'), many employers may feel a little uncertain on how to calculate their monthly Employment Tax Incentive (ETI).

But there really isn't any need to feel this way!

Here's how to calculate your monthly ETI, quickly and with ease, using the relevant SARS tax tables...

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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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The amount you can claim for each qualifying employee is determined by how much remuneration you pay them. It's also determined by which 12-month period that emp loyee is in.

There are 2 periods, of 12 months each, in which you can claim ETI from qualifying employees. They are simply referred to as the First and Second periods.

The SARS tax tables, for ETI claims, are as follows…
 
 
First period (first 12 months of employment):

Monthly remuneration ETI claim amount
R0 – R2000 50% x monthly remuneration
R2001 – R4000 Fixed at R1000
R4001 – R6000 Use the following formula:
 
ETI claim amount = R1000 – (0.5 x (monthly remuneration – R4000)
 
In other words, take the monthly remuneration and subtract R4000 from it, then times it by 50%. Subtract that amount from R1000 and you'll have your ETI claim amount
 
 
Second period (second 12 months of employment):

Monthly remuneration ETI claim amount
R0 – R2000 25% x monthly remuneration
R2001 – R4000 Fixed at R500
R4001 – R6000 Use the following formula:
 
ETI claim amount = R500 – (0.25 x (monthly remuneration – R4000)
 
In other words, take the monthly remuneration and subtract R4000 from it, then times it by 25%. Subtract that amount from R500 and you'll have your ETI claim amount
 
 
 
*That is how to calculate your ETI claims using the SARS tax tables.

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