20 August 2010
IMPACT OF NEW SARS PROCEDURES ON SKILLS DEVELOPMENT LEVY AND GRANT PAYMENTS.
CETA would like to bring to your attention the new procedures implemented by SARS which could have an impact on your grant payments.
As of the 20th of March 2010 SARS has changed the EMP 201 forms. In terms of the new EMP201 process:
- Each payment is "linked" to an EMP 201 declaration by means of a payment reference number or "PRN"
- Only one payment is now required (using the PRN reference) as opposed to the three separate payments in the past
- The EMP 201 declaration provides the tax allocation between PAYE, SDL, and UIF
- Payments are allocated to the Employer's PAYE, UIF and SDL accounts only when the payment has been correctly matched to an EMP201 declaration (thereby preventing errors due to incorrect payment referencing)
- Payments that are allocated to SDL accounts are transferred to the Seta only once the payment has been correctly matched to the EMP 201 declaration
SDL contributions will not be allocated to the Seta by SARS for the following reasons:
- If employers have outstanding EMP 201 declarations
- If an Incorrect "PRN" is specified
- If the EMP 201 does not match the payment
It is important for employers to note that if you have queries with PAYE or UIF your SDL levies will still be withheld until all the queries has been resolved. Once the information is corrected, payments will be allocated and made available for transfer to the respective Seta. The impact of the above process is that employers will only receive grants payments based on levies received by the Seta.
Employers are therefore encouraged to regularly review levy contribution on the CETA SMS system to ensure that the correct SDL levies have been received by us. If there are errors, we suggest that you follow this matter up with SARS urgently as it will affect your grant payouts.