Here are a few reasons why South African companies should register with their SETA. The skills development levy (SDL) is a percentage of a company's payroll that is paid to the South African government to fund skills development initiatives. The SDL is currently set at 1% of a company's payroll.
The SDL is a statutory requirement for all companies in South Africa that have an annual payroll of more than R500,000. Companies that do not pay the SDL may be subject to penalties.
Companies with an annual payroll of less than R500,000 are not required to pay the skills development levy (SDL). However, they can still register with a SETA. There are a few benefits to registering with a SETA even if you are not required to pay the SDL. There are benefits to registering with a SETA even if you are not required to pay the SDL. Here are some of the things that the SDL funds:
Skills development programs: The SDL funds a variety of skills development programs, including learnerships, internships, and training programs for employees.
Research and development: The SDL also funds research and development initiatives that are aimed at improving skills development in South Africa.
Administration costs: The SDL also funds the administration costs of SETAs, which are responsible for administering the SDL and for managing skills development initiatives.
Access to training: SETAs offer a variety of training programs to registered companies, even if they are not required to pay the SDL. This training can help companies to improve their skills levels, to comply with BBBEE, and to become more competitive.
Access to government contracts: Some government contracts are reserved for companies that are registered with SETAs. This means that by registering with a SETA, companies can increase their chances of winning government contracts. Government contracts can be a valuable source of revenue for companies, and they can also help companies to gain exposure to new markets.
Increased brand reputation: Being registered with a SETA can improve a company's brand reputation. This is because it shows that the company is committed to BBBEE and to skills development. A good brand reputation can help companies to attract customers, investors, and employees.
If you are a South African company with an annual payroll of less than R500,000, you should consider registering with your SETA. This can help you to access training, government contracts, and other resources that can help you to grow your business and to improve your competitive advantage.
Here are the steps on how to register with a SETA:
Identify the relevant SETA: The first step is to identify the relevant SETA. This can be done by visiting the Department of Trade, Industry, and Competition (DTIC) website. The DTIC website has a list of all the SETAs in South Africa, along with their contact information.
Contact the SETA: Once you have identified the relevant SETA, you need to contact them to request an application form. The application form can be downloaded from the SETA's website or requested by email or post.
Complete the application form: The application form must be completed in full and must be accompanied by all the required supporting documentation. The supporting documentation will vary depending on the SETA, but it typically includes the company's registration number, its annual payroll, and its BBBEE status.
Submit the application form: The completed application form and supporting documentation must be submitted to the SETA. The SETA will then review the application and make a decision on whether to approve the registration.
The registration process for SETAs can be lengthy, so it is important to start the process early. The SETA will need time to review the application and to make a decision. If the application is approved, the company will be registered with the SETA. Should you require help or guidance our Compliance Hub Consulting Skills Development Facilitators will be happy to help