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
- Check Eligibility:
- Calculate your total payroll for the current year.
- 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.
- Monthly Contributions:
- Calculate 1% of your taxable payroll.
- Declare and pay SDL on your monthly EMP201 return.
- 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.