WeeklySA_AdminHow does SETAS work?
• The purpose of the SETAs is to improve and develop skills within its sector, to identify skills development needs to ensure that national standards are maintained.
• The primary aim is to encourage employers to use the workplace as an active learning environment , acquire new skills and provide new entrants to the market place.
• SETAs work on a levy grant system, which means companies must be registered for and pay their Skills Development Levy to the South African Receiver of Revenues.
• Then SARS will allocate this money via the Department of Labour to each of the SETAs according to the SETA that each specific company has registered with.
• SETAs oversee learnership and ensure that they offer qualifications while getting on the job experience.
How do companies benefit?
• By complying with certain legal procedural requirements employers may claim up to 70% of the Skills Development Levy back from their SETA.
• The benefits of paying SDL which includes 20% of the employers levy can be claimed back in a mandatory grant.
• The employer can register once for different tax types using client information system Tip Top: where an employer expects that the total salaries will be more that R500 000 over the next 12 months that the employer becomes liable to pay LDS.
• Skills Development Act of 1999 serves to fund the skills Development initiatives in the country.
How is this achieved?
• The company must register and coach its skills development facilitator who will on its behalf.
• The company must conduct its skills audit and develop a work skills plan.
• The facilitator will assist in identifying the correct OFO ( please give the full name) codes for different jobs titles as required by the SETA.
What are the benefits of Skills development levy?
• If your company promote training and learning in the workplace ant pays SLD every month you are entitled to the following benefits:
• Skills development grant
• Substantial tax allowances when you implement learnership in your company.
What are the requirements?
• Each SETA has a levy paying company
• A company must be registered and have a tax certificate and CIPRO document.
• Skills levy fund must be paid monthly depending on the companies annual return
• SETAS were structured to develop skills in the workplace, in other words your company must be a learning environment for your employees.
• A company must complete a workplace skills plan (WSP) and an Annual Training Report (ART).
• WSP should be submitted to the employers relevant SETA and ten start training your employees in order to claim the grant.
• ART must be submitted to the employers relevant SETA as proof that the training mentioned was done alongside all relevant documents, money spent on training e.g., invoiced and registered of attendance.
What is a learnership
• A Learnership combines learning with classroom learning so that the learner is able to put into practice on the job what has been learned in the classroom.
• It is workplace learning
• Observing and learning
• Receiving coaching and mentoring
• Understanding the job
• Practicing new skills
• Gathering evidence and being assessed
• When learnership is complete, the learner receives a national qualification
• The respective SETA will be responsible for verification on registration and results before the learner can be deemed qualified.
