Background

The Skills Development Levies Act (No 9 of 1999) (SDLA) established a compulsory levy scheme for the purpose of funding education and training as envisaged in the Skills Development Act (No 97 of 1998) (SDA). The levy became payable with effect from 1 April 2000. The Department of Higher Education and Training (DHET) in conjunction with the various Setas, is responsible for administering the Act, while the South African Revenue Service (SARS) is responsible for the collection of levies.

How to register for the SDL

All liable organisations register for the SDL via the EMP101 form (application for registration) for which SARS issues an EMP103 form (notice of registration) on successful registration of the employer. If the firm already has an SDL number and the firm’s payroll is in excess of R500,000 per annum, the employer is to submit monthly returns via the EMP201 form. SARS issues an EMP213 as remittance advice. If the firm already has an SDL number and the firm’s payroll is less than R500,000 per annum, no information (a nil return) is submitted on the next EMP201 form. With e-filing, SARS greys out the SDL field. Should the employer become SDL paying subsequently, they must advise SARS of this (to free up the greyed area).

Amounts payable

The amount payable is calculated as 1% (one percent) of the total amount of remuneration paid to employees. Any prescribed exclusions that are not leviable are subtracted from the total remuneration

Skills Development Plan

Employers can claim 20% of total levy contributions annually through the submission of an approved Skills Development Plan (SDP). The SDP is submitted online and is due by latest 30 April of each year. Fasset uses SDP information to determine sector skills needs and revises its skills development strategy accordingly. Accuracy of data is therefore of the utmost importance.

Since no extensions can be granted for submission, employers are urged to collect and collate the required data as soon as possible. It should be noted that an approved SDP is a requirement for participation in any Fasset discretionary grants

Mandatory Grant

Criteria for Acceptance and Payment of the Mandatory Grant

The criteria for the acceptance and payment of the Mandatory Grant by Fasset are as follows:
Employer registered with Fasset.
SDL payments to SARS up to date.
SDP (based on regulated format as published in the Government Gazette) correctly completed and submitted in the format required by Fasset.
Deadline for submission is 30 April, or within 6 months of new employers registering for the SDL.
Authorized signatories have signed where required
Proof of the company’s banking details submitted (i.e. a cancelled cheque, bank statement or letter from the bank) in instances where such details have been changed
A new employer is one that has been operating for less than six months. In this case, we require an EMP 103 form from SARS as proof that the organisation is new. In an organisation were there are no employees we also accept a nil return

Grant Payment Schedule

Grant payments are made via a direct EFT into the organisation’s bank account. The reference on the bank statement is the Skills Development Levy number of the company.
Fasset receives levies 3 to 4 months in arrears and is only able to pay grants if accurate levy information has been received.
Mandatory Grant payments are scheduled as follows: February
May
August
November

For Fasset to pay grants, current banking details are required. An original stamped letter issued by the bank, or an original cancelled cheque, is required to process any changes in banking details.

Inter-Seta Transfer (IST)

An IST is the process of transferring a company from one Seta to another. 

The transfer may be done under any of the following circumstances:
The company has been incorrectly registered with a Seta as the main business activity does not match the industrial scope of the Seta
The main business of the enterprise has changed since the previous registration with SARS and now better suits the industrial scope of another Seta
The employer falls within the jurisdiction of more than one Seta, and the employer's application to transfer to the new Seta is motivated by:
the composition of the workforce,
the amount of remuneration paid or payable to the different categories of employees; and
the training needs of the different categories of employees
Should an organisation wish to move from another Seta to Fasset, an IST 01 form must be submitted to the Seta with which the organisation is currently registered. Should a company wish to move out of Fasset to another Seta the IST 01 form must be submitted to Fasset. The Seta must in turn approve the application and forward the signed application to the Department of Higher Education and Training (DHET). DHET then verifies the request and submits the form to the South African Revenue Services (SARS) who will process the change. Please note that this process could be time-consuming. If the application is declined by the relevant Seta, an organisation can dispute this with the Seta in question. If the transfer is still not effected, the matter can be escalated to DHET. Although the Seta facilitates this process, the Seta cannot be held responsible for changes not being made timeously. It is ultimately the responsibility of the organisation to ensure that they are registered with the correct Seta and to monitor the process and ensure the transfer is completed.      

Grant Payment Queries

Please contact the PQA Department (011) 476-8570 with any enquiries in this regard or consult the Download page for additional information

Banking Details