Understanding the tax implications of the youth wage subsidy

There are number of compelling reasons why some companies find the ETI to be a powerful mechanism. 101 gas station For one it is immediately accessible, in other words, a business does not need to go through a special application process to gain access to its benefits. Electricity quotes by benjamin franklin There are no Black Economic Empowerment or gender requirements. Gas meter reading The ETI is not taxable and it doesn’t have an impact on other allowances such as the Learnerships’ Allowance. Gas 69 Perhaps its most alluring aspect is that the ETI can result in a physical cash refund or reimbursement to a business. Gaston y la agrupacion santa fe In this way, the ETI immediately affects your bottom line and frees up cash reserves to grow and enhance your business. Gas in dogs stomach Lastly, the ETI is a self-assessment tax claim, no audit or pre-approval are required before claiming the benefit.

I have studied the ETI in detail and consulted across various industry sectors. Gas welder job description Without a doubt one of the biggest challenges ETI faces are that few are aware that the ETI program exists. R gas constant Those that do know of its existence may not understand the ETI’s computations and compliance requirements; and may be under the misconception that the ETI is easy to calculate and manage.

Step 1 – It is important to ensure that the employer qualifies to claim ETI and has qualifying employees. Electricity recruitment 2015 For the most part – provided the employer is registered for PAYE, is not a sphere of government, and does not fall foul of any of the anti-avoidance measures – they will be eligible a employers.

Step 2 – The employer must be ETI Tax compliant on the day of the submission of the ETI claim via the Monthly Employer Declaration (EMP 201) form.

You may not terminate an existing non – qualifying employees in favour of hiring those that meet the ETI requirements. Gas stoichiometry – The penalty for doing so is severe.

An employer who is entitled to an ETI credit for “qualifying employees” receives the benefit through the offset of the gross monthly ETI value against any PAYE payable. Power in costa rica In other words, PAYE liability is reduced.

This credit is calculated per employee per month in accordance with a SARS formula and submitted with your monthly PAYE return. Gas prices under a dollar You may only claim an ETI credit for a maximum of 24 months for any one employee and the ETI credit is decreased after 12 months. Gas after eating fruit There are 28 ETI critical events in the full claim period for any one employee that the employer must manage. Gas density formula When calculating ETI, please note that since 1 March 2015 hours are to be used instead of days when apportioning ETI.

Claim: The employer submits the monthly PAYE return showing that they have a R 50 000 PAYE liability. Z gas ensenada telefono However, because they employ 10 qualifying workers, they also have R10 000 in ETI credit. Electricity distribution vs transmission This means that the employer needs to pay SARS R40 000. Quadcopter gas engine The R10 000 credit is treated as if it had been actually paid to SARS.What does this mean from a business perspective?

In order to claim ETI you must be ETI compliant on the day you submitted your ETI claim. 4 other gases in the atmosphere This means that there may be no outstanding tax return for any tax type, nor must there be any tax amounts outstanding. Grade 6 electricity experiments Timing of the submission is important.

A tax clearance certificate will not be adequate to proof compliance. Electricity notes class 10 pdf The ETIA is still subject to the provisions of the Tax Administration Act. Gas mask bong review The most important of these is “Burden of Proof”. Gas variables pogil When your ETI claim is eventually audited by SARS I would recommend that you have already compiled a bare minimum SARS audit pack that includes including the following:

very detailed computations per month per employee. Electricity voltage in norway Remember, SARS can ask for the data electronically and as such could request a report and verification of every single employees ETI computation, and;

The ETIA contains numerous anti avoidance measures. Maharashtra electricity e bill payment Although non-compliance with these measures is a common pitfall, sadly the pitfalls are not widely publicised.

Company A has a monthly PAYE cost of R50 000 per month. Gas vs electric dryer In January of 2014 they were subjected to a VAT audit and SARS adjusted the input VAT leaving a R2 000 balance payable. Storing electricity in water The company submitted an objection in January 2014, which is likely to succeed. M gasol nba They calculate their ETI Benefit to be R10 000 and use this value going forward. Arkansas gas tax In July 2014 SARS concedes to the VAT objection and there is no more outstanding VAT.

The ETI is disallowed because there is an outstanding tax debt due to SARS. Electricity voltage in india The ETI loss is R60 000, penalties and interest are levied at +-R6 000.Company now owe SARS +-R66 000. Gas news Furthermore all the PAYE monthly returns are wrong from January 2014 to June 2014.

The July 2014 ETI benefit may not be utilised until the outstanding PAYE balance is settled. Elektricity club Not only does Company A now owe +-R66 000 to SARS but they can no longer utilise their ETI benefit.

Had Company A made use of the relevant relief provisions in the Tax Administration Act the VAT debt would not affect the ETI Compliance. Electricity electricity schoolhouse rock Alternatively the other simple option – if viable – is to pay the outstanding VAT balance and object thereafter.

Most companies who qualify to claim for ETI never receive a refund paid into their bank accounts. Geothermal electricity how it works The PAYE owed is offset against the ETI credit and because they owe usually SARS more in PAYE each month than what their ETI credit is worth, they do not receive payment from SARS. 2 chainz smoking on that gas That said, as a taxpayer you may find that your ETI credit is greater than the amount of PAYE owed to SARS every month and /or you never utilised your ETI before, so this results in a once off reimbursement.

These cash refunds will only happen every six months after the physical returns submitted together with the monthly and annual calculations as well as the source documents have been rigorously audited. Industrial electricity prices by state Industries with high staff turnover, lean management structures and low wages usually give rise to material ETI reimbursement.

Taxpayers will benefit financially by releasing working capital into their business’s and be able to grow their business’s in line with the intention of this incentive. Electricity production in chad By reducing the cost of employment, ETIs make firms more competitive locally and globally. Electricity laws uk The additional freed up cash could also be utilised towrards training and education programs for employees.

The potential and efficacy of the the ETI will hopefully be realised and the incentive leading to the extension of the ETI beyond 2016. Electricity dance moms episode At this point treasury is unable to gauge the magnitude of the potential liability of ETI going forward. Save electricity images for drawing This is a valid concern, however I believe if the correct changes are made to the legislation it would negate the unknown liability factor and have the desired employment effect.

SARS benefits from the ETI because it increases Tax compliance as taxpayers need to make sure that that their tax affairs are in order to claim ETI. Gas water heater reviews 2012 These improved processes and compliance at taxpayer level will stay in place going forward.

In the months to come, I believe the level of assurance required in order to deal with the “ETI Factor” will only become an issue once the audit has begun. Gaslighting It is near impossible for an audit firm to predict the materiality of the ETI and risk involved for any one client and thus account for it in the audit budget. Gas and water socialism This will become especially important where ETI employees are transferred between group companies. Grade 9 electricity worksheets ETI is complex and will provide challenges especially where we have used the word refund and re-imbursement interchangeably above. Gas station near me ETI is a re-imbursement and not a refund. Gas bloating nausea Reimburse means that the ETI cash benefits belong to the taxpayer already. B games play online They need only claim the benefit.

There is very little time left to claim your ETI benefits. Grade 9 electricity unit test The preparation and compliance checks may require more time than expected so we would urge all qualifying tax payers to begin as soon as possible. T gastrobar el tenedor ETI, in theory, is simple but in reality it is a complex affair. Electricity drinking game An ETI strategy should try to address the following questions in order to maximise benefit and minimise risk:

If you are unsure, we recommend consulting your SAIT professional for assistance in claiming what you are entitled to, this incentive could make a tangible difference in your business.

The ETIA was introduced by National Treasury to combat unemployment, skills shortages and create new jobs. Power usage estimator The ETIA came into effect 1 January 2014 and ends December 2016. Electricity bill payment hyderabad Whether or not it will be extended is still uncertain.

ETI is complex and misunderstood, which resulted in a very slow uptake. Electricity physics problems The market deemed that in many circumstances ETI is uneconomical to pursue.

By late 2014 the ETI uptake had improved. Gas 89 SARS had issued guidelines, payroll systems had begun to incorporate the ETI calculations and provide training to taxpayers.

The only fact we are certain of is that all ETI claims should be submitted this year. Electricity in salt water The two key dates being 28 February 2016 and 30 August 2016 are important for taxpayers to prepare and claim ETI.