Teryl @ Work

National Payroll Week has focused +Accsys (Pty) Ltd   on all things payroll. I sat down to talk to Cathie Webb, our Chief Operations Officer, who is a director of South African Payroll Association (SAPA), as well as on the executive of the Payroll Author’s Group (PAG). Having published articles and blogs on the Employment Tax Incentive (ETI) bill last year, I thought it would be a good idea to discuss this with Cathie. She confirms that, in late 2013 when the Minister of Finance approved the ETI Bill, it was designed to encourage business to employ youth, and to supplement the pool of employable and skilled workers available in South Africa. Cathie says “The ETI allows business to reduce their PAYE burden according to a formula which incentivises employment of people earning under R6000 per month.  According to SARS, in the first month of implementation, 56 000 new jobs were created*”. “As this number may include interns, who would have formed pa...

While there has not been agreement from all parties on the Employment Tax Incentive (ETI) Bill, and the roll out, it was formally published on 4th November, 2013.  With the January go live date, there are still some issues that need to be finalised, but simply put, the concept is as follows: The incentive runs from January 1st, 2014 to December 31st, 2016 The employee must be between 18 and 29 years old on the last day of the relevant month The employee must earn a wage of less than R6 001 per month The incentive can only be claimed in the months when the remuneration is under R6 001  The employee must have been engaged after October 1st, 2013 The employer must be eligible by being  Registered for PAYE In good standing with SARS Not local, provincial or national government Limited to South African citizens and valid asylum seekers, the main driver is for youth employment, however, the incentive also applies to employment in Special Economic Zones (SEZ) ...