Employment Tax Incentive (The Youth Employment Subsidy) questions

**Christel** · 11-Feb-14, 12:51 PM

I found a nice document for those who want to check out the EMP501 process with the ETI changes updated....
http://www.sars.gov.za/AllDocs/Docum...12%201%203.pdf

**Christel** · 13-Feb-14, 08:51 PM

Ok, so we had the webinar hosted by SAIT today... and wait for it...... it crashed after 20 minutes... EISH. They will either have to re-schedule or give us a copy to download. A few things that we did clear out was that the incentive will not be treated as income, but rather be accounted for in the salary section on your accounting program, i.e. 4000 codes in Pastel. Basically like you would enter the diesel rebates from SARS, you would open an ETI account and post the incentives there so that in the end your salaries does not get affected, and all rebates can telly up to balance to your emp201 returns.

**Dave A** · 13-Feb-14, 09:22 PM

Originally Posted by Christel

A few things that we did clear out was that the incentive will not be treated as income, but rather be accounted for in the salary section on your accounting program, i.e. 4000 codes in Pastel. Basically like you would enter the diesel rebates from SARS, you would open an ETI account and post the incentives there so that in the end your salaries does not get affected, and all rebates can telly up to balance to your emp201 returns.

Any chance that could be translated into non-Pastel speak?

Debit the PAYE Liability account.
Credit a Salary Expense subaccount named ETI.

Does that sound right?

**KimH** · 14-Feb-14, 06:17 AM

Christel - didn't that chat box drive you nuts yesterday.... my goodness - I never realized what a bunch of complainers people in our field are lol!!

Dave - that sounds right. In my case, I break the employees tax liability accounts in the balance sheet down (paye / uif & sdl) each have their own code, so I would just add the new ETI account for clients that qualify.

As a side note - we have been tentatively informed that the webinar will take place again next Thursday, but I am sure Christel will provide updates as SAIT releases them.

**Christel** · 14-Feb-14, 07:56 AM

Hi KimH, it was actually an "eye-opener". Flip I've never seen such a bunch of complainers. We actually had a good laugh about it. And I'm sure Lucky from SARS was relieved he did not have to answer all those questions!!

Dave, I normally load my emp201's as a supplier invoice on the last day of the specific amount. Debit the PAYE per employee to the specific employee's salary account (the aim is to have the gross amount in this account at month end), then credit the ETI account, debit the 1% employee UIF contribution to his specific salary account, debit the 1% company UIF to the Company Contribution Account, debit the SDL to the Company Contribution Account. This should balance to your payment on the emp201.

**Mike C** · 10-Mar-14, 08:16 AM

I have just updated my payroll and had to enter an ETI (Standard Industry Classification Code) for the company as well as each employee. Can anyone tell me what this is all about?

**Dave A** · 10-Mar-14, 07:50 PM

You can try this tool at Stats SA.

If the company is registered for SDL, there should be a SIC code on that registration.

**Christel** · 11-Mar-14, 07:47 AM

For anybody that is interested in this topic, there is a YOUTUBE session on it: http://youtu.be/0WBhVEHfOZc

I'm sure most of your questions will be covered...

**Dave A** · 12-Mar-14, 03:25 PM

Following on with SIC codes, scratching around I get the feeling this might be a bit of a minefield.

Stats SA seems to have the responsibility for creating and allocating SIC codes, but then there's also some indication that CIPC also has a hand in this.

Then when I check the SETA lists... Well, things don't tie up as neatly as one might expect.

I've attached the SETA list of SIC codes for everyone's convenience.
(Although I'm a little concerned this might just add to the confusion).

**Mike C** · 13-Mar-14, 07:07 AM

I get the feeling this might be a bit of a minefield.

I must admit that I am rather confused. Who "allocates" the SETA code ... or perhaps it is better to ask ... is this code officially registered against a business? Can you change the SETA code without going through official channels, or is it merely for statistical purposes.

I have looked at our CK documents and don't see it listed anywhere there, and can't find any registration of SDL so can't link any SIC codes to that.

Furthermore Pastel Payroll has an extensive list of SIC codes, but not as extensive as the tool at stats SA. So I can't get an exact match.

Still more confusing is the fact that you can give individuals in the company different SIC codes.