HR Pulse

4 Things you need to check on before you even start putting your WSP together...

The deadline for submitting your workplace skills plan (WSP) and annual training report (ATR) is fast approaching. But before you spend any time incorrectly drafting either of these documents, make sure that you’ve gone through these four steps.

Step 1: Double-check that your company is actually eligible to pay levies in the first place

If your company isn’t eligible to pay a skills development levy (SDL) – even though SARS may have exempted you – you won’t be able to claim any monies back as there wouldn’t be any levies for you to claim back from. 

How will I know if I am eligible to pay an SDL?

Your company will be eligible to pay an SDL if it:

• Is a registered company;
• Is paying SARS PAYE; and
• Has an annual turnover of R500 000 or more.

If you are indeed eligible, your company will receive an SDL number.

How do I apply for Seta funding if my company is exempt from paying SDL?

If your company turns over more than R500 000 annually, and SARS has exempted you from paying SDL, you may still submit a WSP and ATR to apply for discretionary funding for non-levy-paying companies. For example, the Health and Welfare Sector Education and Training Authority (HWSETA) accepts WSPs and ATRs from companies which are exempt from paying levies and allocates these companies a T-number instead of an SDL number.

Step 2: Check if you are up to date with your SDL payments

If you don’t keep up with your payments, the amount of money you will get back from your Seta will be affected. Remember that your mandatory grant has been reduced from 50% to 20% so if you contribute R20 000 – when you are supposed to have contributed R120 000 – you’ll only get R4 000 back instead of the R24 000 you were meant to receive.

How do I check if my company’s SDL contributions are up to date?

You can either:

• Ask your company’s finance department if you can see the EMP-201 they submitted to SARS (this is the form that companies use to pay SARS levies) in order to verify that all SDL contributions have been paid; or
• Contact your Seta to find out if your levies are up to date. NB: Because the Setas’ records are updated by the Department of Higher Education, they do not have the latest data – they are always a month behind.

Step 3: Check that you are in the right Seta

There are over 20 Setas in South Africa, each with their own requirements. So make sure that you adhere to the requirements of the correct Seta before you do a lot of work for nothing!

Here is a list of Setas with the contact details of the relevant people.

Step 4: Check that your company is using the correct SIC code

What is a SIC code?

A SIC code, or Standard Industrial Classification code, is an internationally accepted set of codes which are used to classify companies according to their economic activities.

Even though you might feel that it isn’t necessary to check your company’s SIC code, make sure that you do just in case – these have changed recently.

To double-check your company code, follow this link.

Author: Lia Marus is the editor of HR Pulse. She has a BA in French, Italian and Linguistics from UCT, an MA in translation from Wits and a Postgraduate Diploma in Management from the Wits Business School. She is currently studying towards her LLB through Unisa. Lia started her career off in corporate communications, where she worked as a sub-editor, researcher and marketing coordinator. She then heeded the call of the publishing world and went into the business-to-business publishing field. She worked as a sub-editor as well as a chief sub-editor. Before joining ITWeb, she managed an HR guidebook at a leading international publishing company.