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How to declare and pay your SDL to SARS correctly

by , 14 October 2013
If you have one or more employees, you must register for the Skills Development Levy (SDL). If you don't, you'll face interest and penalties from SARS. Don't take that risk. Here's how to declare and pay your SDL to SARS.

The SDL is a company contribution that funds education and training through the Sector Education and Training Authorities (SETAs).

This is how you need to declare and pay SDL to SARS:

You must declare your SDL to SARS on the monthly return for employees' tax (EMP201). This reduces paperwork and the administrative burden. It also means the same terms and conditions apply for submission and payment dates, says the Practical Tax Loose Leaf Service.

The payment for SDL will happen at the same time you pay your Pay As You Earn (PAYE) and Unemployment Insurance Fund (UIF)

You must add all three amounts together and pay SARS one lump sum per month. SARS will know how to allocate your payment between PAYE, UIF and SDL based on the EMP201 return you file.

If you handle SDL incorrectly, you'll not only face interest and penalties on underpayment, you'll also expose your business to a full employees' tax audit from SARS.

Make sure you avoid this by correctly declaring and paying your SDL.



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