Your 1% Skills Levy: How to Get Your 20% Rebate and Unlock the 49.5% "Big Money"

If your company's annual payroll exceeds R500,000, you are required to pay a 1% Skills Development Levy (SDL) to SARS every month. Many business owners view this as just another tax. However, this 1% levy is a strategic investment vehicle, and you are entitled to get a significant portion of it back.

The SETA system is designed to give you this money back through two different "pots": Mandatory Grants and Discretionary Grants. Understanding the difference is critical to maximizing your financial return.

1. The Mandatory Grant: Your 20% Rebate

This is the simplest part of the system. Your SETA sets aside 20% of your total SDL contributions specifically for you. This is, quite literally, your money waiting to be reclaimed.

• What it is: A direct refund of 20% of your annual SDL payments.

  
  

• How to get it: You must submit your Workplace Skills Plan (WSP) and Annual Training Report (ATR) by the 30 April deadline. This submission is the only requirement to unlock your rebate.

  
  

• WPS Solution: We act as your Skills Development Facilitator (SDF) to guarantee your WSP/ATR is submitted correctly and on time, ensuring you automatically receive your 20% grant.

  
  

2. The Discretionary Grant: The 49.5% "Big Money"

This is the largest pool of money your SETA controls, funded by 49.5% of all levies collected. This fund is not an automatic rebate; it is a competitive fund for strategic training projects.

• What it is: A grant awarded by the SETA to companies that propose training projects aligned with national and sectoral skills priorities. The primary focus is on PIVOTAL programs, such as learnerships.

  
  

• How to get it: You must actively apply during specific "funding windows". The application process is complex, competitive, and requires a detailed project proposal.

  
  

• WPS Solution: This is our specialty. We leverage our expertise to design learnership programs that meet SETA priorities. We then manage the entire complex application process on your behalf, aiming to secure this discretionary funding to pay for the learners we place in your business.

  
  

The Smart Strategy

Don't settle for just the 20% rebate. White Paper Systems ensures you get your Mandatory Grant and provides the expertise to unlock the 49.5% Discretionary Grant fund. This allows you to host funded learners, achieve your B-BBEE goals, and transform a 1% "tax" into a powerful workforce strategy.

Contact White Paper Systems to maximize your full SETA funding potential. www.whitepaperconcepts.co.za