SDL (SKILLS DEVELOPMENT LEVY)
SETA code changes

1. SDL PURPOSES – Refer to the SETA/SIC code annexure in the SARS Guide in respect of Skills Development Levies.
• The SETA/SIC codes are established (published in GG) by the Minister of Higher Education and Training. Certain SIC codes are classified under specific SETA’s and are chosen by the employer when registering with SARS as an employer for PAYE/SDL/UIF or SDL/UIF purposes.
• SARS accepts the codes chosen by the employer and will only change the SIC code if a SIC code belonging to a different SETA is chosen. The SETA/Sic codes under which an employer is registered, used to be printed on the –
o confirmation of registration (I trust that this is still happening),
o monthly EMP201 (I trust that this is still happening), and
o EMPSA (statement of account).
• Where an incorrect SETA/SIC code was chosen, there is an IST01 form which the employer must complete which can be sourced from the SETA or the Department of Higher Education and Training (DHET) and submit it to the current ‘incorrect’ SETA for approval. Once approved, the ‘incorrect’ SETA will send the approved IST01 to the DHET for verification. The DHET will direct a re4quest to SARS to change the SETA/SIC classification.
• I suggest that the same process is followed to correct the SIC code where the SETA code is correct but the SIC code is incorrect. Although the IST01 might not make provision for the SIC code change, I suggest that the employer complete the relevant SETA/SIC codes on this form as SARS do need some confirmation to confirm the correct SIC classification and who better than the SETA to do this.
http://www.sars.gov.za/AllDocs/OpsDocs/Guides/SDL-GEN-01-G01%20-%20Guide%20for%20Employers%20in%20respect%20of%20Skills%20Development%20Levy%20-%20External%20Guide.pdf

2. ETI PURPOSES – See SARS¬_PAYE_BRS – PAYE RECONCILIATION: codes 2083 Employer SIC7 Code & 3263 Employee SIC7 code.
• 2082 – Employer SIC7 Code – The Employer Standard Industry Classification Code
o Use the 5-digit sub-class
• 3263 – Employee SIC7 Code – The Standard Industry Classification Code in which the employees mainly work.
o Use the 5-digit sub-class
• These SIC codes are chosen by employers when creating the IRP5/IT3(a) cert’s and where incorrect codes were used, the cert’s should amended to correct these codes. As far as I know, these codes are only used for IRP/IT3(a) purposes to validate the ETI values/limitations on the cert’s and are not part of the employer record on the relevant SARS systems.
http://www.sars.gov.za/TaxTypes/PAYE/ETI/Pages/SIC-Codes.aspx

SDL Deregistration

Where the employer determines that his total remuneration paid to all employees will not exceed R500 000 for the following 12 months, the employer is exempt from paying SDL for the relevant periods. This means that the employer need to complete a 0.00 in the SDL field on the monthly EMP201 returns.
4. Exemptions.—The levy is not payable by—
(b) any employer where section 3 (1) (a) or (b) applies and during any month, there are reasonable grounds for believing that the total amount of remuneration, as determined in accordance with section 3 (4), paid or payable by that employer to all its employees during the following 12 month period will not exceed R500 000;

However, it is not recommended to deregister for SDL if the employer is not certain that the business will not exceed this limit for the following few years.
However, if the employer is sure that the threshold will not be reach in the coming years, the employer/representative can visit the SARS branch to request a deregistration of SDL.
According to the information available at SARS, the representative must visit the SARS branch, to request the deactivation of the payroll taxes.

The following can be found in paragraph 28.1 by using the link ; https://www.sars.gov.za/wp-content/uploads/Ops/Guides/GEN-REG-01-G04-How-to-Complete-the-Registration-Amendments-and-Verification-Form-RAV01-External-Guide.pdf

The following employers are also exempt from paying the SDL, any:
• Public service employer in the national or provincial sphere of Government.
• Public service employer in the national or provincial sphere of Government.
• National or provincial public entity if 80% or more of its expenditure is paid directly or indirectly from funds voted by Parliament

See eFiling screens below.

Click on the details on the right-hand side which will open the registration details for the payroll taxes.

Click on the deactivate block next to the SDL tax type.