Registering for the Skills Development Levy (SDL)

What Is SDL?

SDL provides funding for training and development programs for its employees. Employers contribute 1% of their total payroll each month, which goes to the national skills fund and specific sector education and training authorities (SETAs).

When to Register

• If your annual payroll exceeds R500,000, you are required to register and pay SDL.
• Public benefit organisations and certain associations may be exempt.

Steps to Register

1. Check Eligibility:
   • Calculate your total payroll for the current year.
2. Register Alongside PAYE:
   • Use SARS eFiling to register for PAYE, UIF and SDL simultaneously by completing the EMP101 form.
   • If you are already registered for PAYE/UIF, add SDL registration via the “Add Tax Types” option.
3. Monthly Contributions:
   • Calculate 1% of your taxable payroll.
   • Declare and pay SDL on your monthly EMP201 return.
4. Annual Returns:
   • Include SDL in your EMP501 annual reconciliation.
   • Keep payroll records and proof of training expenditure.

Benefits

• Companies can claim back a portion of their SDL contributions through SETA grants and rebates for approved training programs.
• Investing in staff training can improve productivity and competitiveness.