SARS - Employment Tax Incentive (PAYE Relief)

FUND DETAILS

Name of the fund

Fund administered by

SARS

Type of relief/support

Employee Tax Subsidy

Total size of the fund

Not stipulated

Who does the fund target?

All businesses compliant with UIF Act

Sector target

All sectors

Minimum amount you can apply for

Not stipulated

Maximum amount you can apply for

R1750 per qualifying employee in the first 12 months (normal ETI plus R750).
R1250 per qualifying employee in the second 12 months (normal ETI plus R750).
R750 for other employees who fall within a salary band of R2000 to R6500 and do not qualify per above or are have exhausted their 24 month qualifying cycle.

In order to minimise the loss of jobs during this critical period, Government proposes expanding the ETI programme for a limited period of four months, beginning 1 April 2020 and ending on 31 July 2020 as follows:

Increasing the maximum amount of ETI claimable during this four month period for employees eligible to R1750 in the first qualifying twelve months and to R1250 in the second twelve qualifying months.

It is recommended that business owners seek the guidance of their accountant or a tax professional in order to submit a correct an accurate application for the above relief.

RELIEF CRITERIA FOR THE SARS - EMPLOYMENT TAX INCENTIVE (PAYE RELIEF):

A taxpayer who is conducting a trade with a gross income of R50 million or less for the year of assessment the period payment is being made for.
The gross income must not include more than 10% of income derived from interest, dividends, foreign dividends, rental from letting fixed property and any remuneration received from an employer.
The taxpayer must be fully tax compliant. That is to say, returns across tax types must have been filed and tax debts paid, or arrangements made with SARS regarding any outstanding tax debts. It is important for you to ensure you are compliant for registration, filing and payment of all taxes that you are liable for.
An additional requirement for PAYE and ETI, is that employers must have been registered as an employer with SARS by1 March 2020 to be able to qualify for this tax relief.
The employee/s is/are between the ages of 18 and 29
The employee has a monthly remuneration of less than R6500 per month.

HOW TO APPLY FOR THE SARS - EMPLOYMENT TAX INCENTIVE (PAYE RELIEF):

www.treasury.gov.za | www.sars.gov.za.

DOCUMENTATION TO BE PROVIDED FOR THE SARS - EMPLOYMENT TAX INCENTIVE (PAYE RELIEF):

Letter of authority, on an official company letterhead granting permission to an individual specified to lodge a claim on behalf of the company.
MOA (completion of the agreement between UIF, Bargaining Council and employer).
Prescribed template that will require critical information from the employer.
Evidence/payroll as proof of last three months employee(s) salary(ies).
Confirmation of bank account details in the form of certified latest bank statement.

ADDITIONAL INFORMATION FOR THE SARS - EMPLOYMENT TAX INCENTIVE (PAYE RELIEF):

0800 00 7277

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