Skills Development Levy - When to pay and how much

[J7J]

Hi,

When must an employer start paying SDL and what is included in the remuneration that the 1% is calculated on?

Thanks!

[Dave A]

You must register for SDL when your annual payroll exceeds R500 000 per annum.

The 1% is calculated on taxable remuneration. Tax deductible items such as pension fund contributions would need to be deducted from the total remuneration in arriving at the taxable remuneration figure.

[J7J]

Thank you, Dave.

If I would like to manually calculate SDL, how would I include the following items:

1) Company Car Fringe Benefit
2) Medical Aid Fringe Benefit
3) Use of Motor Vehicle Fringe Benefits

Would these be included at 100% of the determined value?

[Mike C]

You must register for SDL when your annual payroll exceeds R500 000 per annum.

And when it drops below that, do you just stop paying the SDL amount?

[Dave A]

If I would like to manually calculate SDL, how would I include the following items:

1) Company Car Fringe Benefit
2) Medical Aid Fringe Benefit
3) Use of Motor Vehicle Fringe Benefits

Would these be included at 100% of the determined value?

Given the new dispensation on medical aid benefits, I don't know on that one. But for the remainder, yes. Ultimately my understanding is you use the same remuneration value used to calculate the PAYE contribution. It certainly was enough to get me through unscathed for a payroll taxes audit by SARS a couple of years ago.

And when it drops below that, do you just stop paying the SDL amount?

I don't know - hopefully someone else here will.