Employment Tax Incentive

SARS has implemented this incentive as from 1 January 2014 to encourage employers to hire younger, less experienced employees.  If you meet the requirements, a tax incentive of R1000 per month per employee can be claimed by you as the employer.  The claim is deducted from the monthly PAYE payable to SARS and you immediately gain from this cash flow benefit.

Other requirements include that the employer must be registered for PAYE, the employee has a SA Identity document and must be between the ages of 18-29.  The following are excluded from this incentive; for instance domestic workers, connected persons to the employer and independent contractors cannot gain from this.
This incentive is only applicable to employees who have started working on or after 1 October 2013.
Penalties are charged if older employees are fired so that younger employees are hired who qualify for this incentive.  There are also certain requirements regarding a minimum and maximum wage.

If you would like more information or would like to know if your business qualifies for this incentive then you need to contact us or make an appointment with Sonja or one of the Team Leaders.