Determining Your Skills Levy

To establish whether you are liable to pay a skills levy, determine what your annual employment is. Consider the following to establish the employment cost:

Include:

• Normal salary, wages, overtime pay, bonus, gratuity, commission, leave pay, etc.;
• Remuneration paid to employees who do not have to pay tax, i.e. their remuneration falls below the income tax threshold;
• Pensions and retirement allowances;
• 50 percent of travelling allowances;
• 50 percent of any allowances to holders of public office;
• Fringe benefits valued in terms of the Income Tax Act (in the Seventh Schedule).

Exclude:

• Lump sums from pension, provident and retirement annuity funds;
• Amounts payable to a learner in terms of a contract of employment (as defined in the Skills Development Act);
• Amounts paid to independent consultants or labour brokers;
• Reimburse allowances, e.g. entertainment/travel allowances;
• Amounts paid to non-executive directors of private companies.