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In an attempt to reduce the high rate of unemployment amongst young people Government proposed a Wage Subsidy in the 2010 Budget, followed by discussion documents, more Budget proposals, a change of name to the Youth Subsidy, then Nedlac, and even more discussions. Finally, the subsidy has been kick-started back into life with the issue of the draft Employment Tax Incentive Bill (ETI) on 20th September 2013.

What does this mean for your payroll?

The proposed employment tax incentive will encourage employers to hire young people by reducing the amount of PAYE payable to SARS, thereby reducing the cost of employment to the employer while leaving the employee's earnings unaffected.

When will this take effect?

It is proposed to take effect on January 2014 but the proposed date seems to be optimistic, and amongst other comments, the Payroll Authors Group of South Africa has requested that the date is postponed.

Sage VIP Payroll & HR is at the forefront of implementing this change in our industry leading products. Regardless of when this legislation is finalised, as a Sage VIP client you can have peace of mind knowing that your payroll will be ready.

We will notify you when the legislation is finalised, the updated software is ready to be released and how to implement the changes on your payroll.


Click here to read more about the employment tax incentive.

If you have any questions, please contact

Sage VIP Payroll & HR
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