In order for an education and training provider to be accredited by a SETA ETQA, it is necessary to determine whether or not the provider offers programmes that fall within primary focus of the SETA ETQA. The ETQA Regulations state that an ETQA must have “a primary focus for its quality assurance activities based on its association with identified sector and the identified mission of the sector” This primary focus determine what learning the ETQA will quality assure and monitor. This section provides you with critical information on what the scope of the LGSETA and then details the primary focus of the LGSETA ETQA. The primary focus determin which education and training providers should apply for accreditation at this SETA.
These questions and answers provide information about employers’ obligations in terms of the Skills Development Act, 1998, and the Skills Development Levies Act, 1999; and explain what the levy grant system is all about.
The short supply of skilled staff is a serious obstacle to the competitiveness of industry in South Africa. The levy grant scheme aims to expand the knowledge and competencies of the labour force resulting in improvements in employability and productivity. This will be achieved through new approaches to planning for training, learning programmes, incentives and an improved employment service. If you participate fully in the scheme you will reap the benefits of a better skilled and more productive workforce.
The payment towards this levy grant scheme is legislated in terms of the Skills Development Levies Act. The intention is to stimulate skills development by enabling employers to reclaim some expenditure on skills development initiatives.
Every employer in South Africa who: Is registered with SARS (South African Revenue Services) for PAYE OR Has an annual payroll in excess of R250 000.
Every employer who is liable to pay the levy must register for the payment of the levy with SARS by completing a registration form (form SDL 101 available from all SARS offices). In order to register, you (the employer) must:
SETA stands for Sector Education and Training Authority. Up to 27 SETAs are to be established during March 2000 and will cover all sectors in South Africa, including government. The members of a SETA include employers, trade unions, government departments and bargaining councils where relevant, from each industrial sector.
SARS will provide you in January 2000 with a list of proposed SETAs and their scope of coverage. You will be required to make a choice from the list of SETAs of the SETA that is most representative of your core business.
Your SETA, once established, will send you all the information on the scheme including the requirements and timetable for action by you. You will be supplied with contact details of employees of the SETA who are available to help you maximise the benefits of the scheme.
If you have not heard anything by 1 October 2000 contact the Executive Officer: National Skills Authority (NSA) at the Department of Labour, Laboria House, 215 Schoeman Street, Pretoria (Private Bag X117, Pretoria, 0001).
Yes. The exemptions are applicable if certain provisions are met. Application for such exemptions are contained in the SDL 101 form, issued by the Commissioner of SARS, who will ultimately adjudicate whether you qualify for exemption or not.
Levies are payable to the South African Revenue Service, which acts as a collecting agency for the Department of Labour and SETAs.
Each month SARS will provide all registered employers with a "Return for remittance" form (SDL 201), which enables you to calculate the amount payable and effect payment.
The amount payable will be calculated as follows:
The levy must be paid over to SARS (after registration), not later than SEVEN days after the end of the month in respect of which the levy is payable, under cover of a SDL 201 return form. The first levy amount is therefore payable on or before 7 May 2000.
Yes. Interest is payable at the PRESCRIBED RATE (Income Tax Purposes) on late payments. A penalty of 10 PERCENT will be levied on the unpaid amount.
The levies paid to SARS will be deposited into a special fund from where 80% of it will be distributed to the relevant SETAs as indicated on the registration forms, and the balance (20%) will be paid into the National Skills Fund. SETAs will in turn pay levy-grants to qualifying employers, while the National Skills Fund will fund skills development projects not within the scope of SETAs.
The levy still has to be paid but you may be eligible for a grant.
In the first year of the levy grant scheme you can recover in grants a minimum of 50% of the levy you paid on condition that you meet all the requirements for the different grants. The details of these requirements will be issued to you in April 2000 by your SETA.
The Department of Labour and the SARS have drafted a SDL 10 guideline containing comprehensive details in this regard. This guide will be forwarded to all registered employers.
Any SARS office, Department of Labour Head Office and Provincial Offices.