Claim your COVID-19 financial assistance from the ETI Scheme
Government has announced that it will utilise the Employment Tax Incentive (ETI) programme to offer companies assistance in paying workers who earn less than R6500 a month over the next four months. You will be able to claim from R750 per month per eligible employee to a maximum of R1750 per month per eligible employee. ETI has been extended to all employees earning under R6500 per month.
The Employment Tax Incentive (ETI) program was introduced in January 2014 to promote employment, particularly for young workers. The scheme announced by the government is intended to minimise job losses due to the impact of COVID-19 on companies and will apply to compliant businesses from 1 April 2020 to 31 July 2020.
WHO IS ELIGBLE?
If you are currently participating in your first year under the scheme, the maximum amount claimable as a PAYE reduction has increased from R1000 to R1750 for four months.
For all employers, the government has introduced a Skills development levy holiday: From 1 May 2020, there will be a four-month holiday for skills development levy contributions (1 per cent of total salaries) to assist all businesses with cash flow.
Companies employing individuals falling under this broadened category are entitled to a monthly PAYE liability reduction of R750. The expansions are for:
- Employees aged 18 to 29, for whom the full 24 months of regular ETI have already been claimed.
- Employees aged 30 to 65.
THE PAYMENT OF ETI REIMBURSEMENTS TO BE MADE MONTHLY INSTEAD OF TWICE A YEAR!
ATVANCE ACADEMY specialises in the successful application of corporate ETI principles and has continuously assisted clients in implementing sustainable and compliant solutions, balancing the maximisation of B-BBEE requirements while reducing the cost impact. Employers using our ETI-funded training system can claim the enhanced COVID-19 ETI funding benefit. The additional grant in terms of the ETI funding is also tax-exempt.
Don’t miss this opportunity to find out how ATVANCE ACADEMY can assist in your ETI claims during this difficult time. The added benefits of enhanced B-BBEE and the knowledge that you are training the workers of tomorrow make this a simple, effective and socially responsible choice for your company.
Below you will find more details on our solution and future partnership.
Yours in future-proofing South Africa,