Cash in on unskilled workers
SARS give cash-back incentives to businesses employing inexperienced individuals.
BUSINESSES paying between R2 000 and R6 000 salaries to young, untrained staff members can claim up to half the money back from the South African Revenue Services (SARS).
But these employees must be between 18 and 29 years of age, be in possession of a South African ID, not be a relative or be connected to the employer and commenced work after 1 October last year.
This was all explained by SARS Educational Tax Consultant Martin Naidoo at a manufacturing and engineering seminar hosted by Business Partners in Richards Bay on Tuesday.
The Employment Tax Incentive Bill, otherwise known as the youth wage subsidy Bill, was signed into law in December to provide more work experience to school leavers and youth members.
It is not, however, applicable to domestic workers, government employees or employees at parastatals.
‘The bill is aimed at employers in the private sector only,’ said Naidoo.
‘There are effectively six different calculations depending on the applicable employment period and monthly remuneration of the qualifying employee.
‘And the incentive is available for a maximum 24-month period per employee.’
Foul play penalty
Naidoo warned business representatives that SARS will not tolerate unfair dismissals to cash in on the incentive.
‘If we pick up that you have retrenched staff to make way for qualifying candidates, SARS can penalise you with up to R30 000 per employee. So best not to try and cheat the system.’
He added that businesses with outstanding tax will not be refunded until their bill with SARS is in the clear.
‘We want to force all businesses to be compliant, so if you do not have a zero balance, it is unlikely SARS will refund you until you are back on a compliance level.
‘The possible exception to this rule would be if you have worked out a debt payment agreement with SARS.’
