Ever wonder what happens to the 1% skills levy you are paying over to SARS on a monthly basis and what you can claim back?
The mandatory grant is 20% of an employer’s 1% skills levy. The employer must reflect their skills needs in the WSP and ATRs. The SETA must allocate a mandatory grant to a levy-paying employer who makes an application by 30 April. Disbursements of mandatory grants are dependent on submission of WSPs and ATRs that are approved by the SETA in line with the criteria set and approved by the Board. Mandatory grants will be paid at least quarterly.
49.5% of the levy must be allocated to discretionary grants. The discretionary grant will consist of PIVOTAL and non-PIVOTAL programmes. A SETA is required to allocate 80% of its available discretionary grants within a financial year to PIVOTAL programmes that address scarce and critical skills in its sectors. These include Learnerships, Apprenticeships, Internships and Bursaries.
The SETAs are limited to 10% of the total levies paid by employers to use for administration costs and 0.5% is paid to the QCTO for quality assurance functions as contemplated in section 26H of the Act.
Workplace Skills Plan (WSP) and Annual Training Report (ATR) submissions are due in less than 6 weeks, closing on 30 APRIL 2018.
If you require assistance with skills audits, training needs analysis, OFO codes, training plan, training providers and learnerships, please contact me.
Author: Cindy Hendricks
*first written by CETA sector skills plan*