Category: SARS | Developement Employers Learning Liable At R500 000 SDL 1%
UNDERSTANDING THE SKILLS DEVELOPMENT LEVY (SDL)
The Skills Development Levy (SDL) is a mandatory payroll-based levy imposed on employers to promote learning and development in the workforce. Governed by the Skills Development Act, this levy funds education and training initiatives through the Sector Education and Training Authorities (SETAs).
WHO MUST PAY THE SDL?
Employers are required to contribute to SDL if they:
- Have an annual payroll exceeding R500,000.00
- Are registered with SARS for PAYE
- Operate within South Africa
CALCULATING THE SDL CONTRIBUTION
The levy is calculated as 1% of the total monthly payroll, including salaries, wages, bonuses, and other taxable benefits.
BENEFITS OF SDL CONTRIBUTIONS
- Access to training grants from SETAs
- Improved workforce skills and productivity
- Potential tax deductions
COMPLIANCE AND PENALTIES
Non-compliance with SDL payment deadlines can result in penalties and interest imposed by SARS.
DISCLAIMER
Nothing in this article and/or post should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure accuracy, Tax A Sured (Pty) Ltd does not accept any responsibility for consequences of decisions taken based on this article and/or post. It remains your own responsibility to consult the relevant primary resources when taking a decision.
