Is the employee a natural person?
Companies, close corporations, trusts, labour brokers and personal services companies don't qualify.
Is the employee a South African citizen?
Or is the employee in possession of a valid asylum-seeking permit?
Is the employee older than 18 years, but younger than 29 years at the end of the month which you're claiming the ETI?
If the employee is turning 29 during the month, then he'll no longer qualify.
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
Is the employee an UNCONNECTED person with regard to your business?
In other words, is the employee, for example, a family member irrespective of whether the relation is direct or indirect?
Is the employee something other than a domestic worker?
You see, domestic workers are specifically excluded from qualifying here.
This includes maids, gardeners, household drivers, au pairs and caretakers.
Is the employee employed for the first time after the 1st
of October 2013?
The employee MUST be a first-time employee.
This means that you must NEVER had employed the person, NOT EVEN as a casual employee!
If, for example, the employee was employed 5 years ago, and you re-employ her, then she won't qualify.
If you can answer 'yes' to all of these questions, including the other 2 questions… then the employee will qualify for the Employment Tax Incentive.
*To find out what the other 2 questions are, simply page over to chapter E 06 in your Practical Tax Loose Leaf Service handbook, otherwise click here to order yours today.