Government has announced that the Employment Tax Incentive Act will take effect in January next year.
The employment tax incentive bill is aimed at encouraging private employers, through tax incentives, to create job opportunities for young people aged from 18 to 29
In its statement, National Treasury says 'government recognises that no one tool or incentive will be a panacea to solve our unemployment problem; however, the tax incentive has the potential to make a real contribution towards the creation of new and additional jobs.'
Here are the implications of the Employment Tax Incentive Bill
We reported that the employment tax incentive bill will apply 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
National Treasury also announced that in early 2014 SARS will publish on its website (www.sars.gov.za) documentation that'll provide further details to assist you in both understanding how the employment tax incentive will work and how you can claim the incentive in practice.
'People can contact SARS and will be guided as to what they need to do on their monthly payroll submissions. Basically, if you employ young people within designated age groups you will qualify for tax benefits,' said SARS' Adrian Lackay in an Eye Witness News report.
As always, we'll keep you updated on the employment tax incentive bill so you can comply if you qualify.
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