Most companies have employees. And when you have employees, you have payroll obligations. That includes PAYE, UIF and SDL deductions.
Most employers know that the taxes deducted are not theirs to keep. So no big deal, right?
Not so fast…
What if you could qualify to make use of ETI (Employment Tax Incentive)? This could mean large savings on your monthly PAYE payments without compromising your employees’ tax obligations at all.
ETI is a tool the government introduced to encourage business owners to hire young, bright, previously disadvantaged individuals that provide the business owner with a cash flow benefit. It also allows them to use those savings to hire more employees in the future. Its essentially a job creation scheme when properly implemented.
If you have employees that earn above R6000 per month they most likely pay some amount of PAYE. If most of your employees earn less than that, are between the ages of 18 and 29, and are not connected to you, as the owner, you could potentially save a lot of money. We have seen instances where the ETI claims on a month to month basis completely removed the PAYE liability altogether.
To find out if you can utilize ETI, call us on 078 457 1188 or e-mail us here. Someone will get in contact with you straight away.