ALL FAQs

What do I do if an employee doesn't qualify each month?
In determining the first or the second 12 month period, only the months in which the employee qualifies are taken into account.

Can the Monthly Employer Declaration (EMP201) have a negative amount?
The Pay-As-You-Earn (PAYE) on the EMP201 may not result in a negative amount. Where the calculated Employment Tax Incentive (ETI) is more than the PAYE liability,

If an employee's monthly remuneration places the employee in the R2001 - R4000 range for ETI. If that same employee works overtime and as a result earns more than R4000. How will the ETI be calculated?
The calculation of ETI is determined per qualifying employee at the end of each month. This means that the incentive amount may not remain fixed per qualifying employee where the employee earns additional payments, such as overtime.

Do I need to tick the Employment Tax Incentive (ETI) field when completing a certificate on [email protected]™ Employer?
The ETI field is only mandatory when you have claimed ETI for the specific employee. A pop-up message will be shown, when manually capturing the certificate details for an employee who doesn't qualify for the ETI.

Are the Employee SIC7 and SEZ codes mandatory on [email protected]™ Employer?
If you have claimed the Employment Tax Incentive (ETI), the SIC7 and the SEZ codes are mandatory and must be captured or included in your CSV import file, when completing the employee certificate details.

Will the Employment Tax Incentive (ETI) be applicable to employers who has received ministerial determination to pay a different minimum wages from the sectorial determination for farmworkers?
The ETI will be applicable as long as the employer pays the ministerial determination wage and all the other requirements are met.

When will an employer not be allowed to claim the Employment Tax Incentive (ETI) in a specific month?
An employer can’t claim the ETI if on last day of month – failed to submit any return-declaration; tax outstanding, excluding tax debt – Where a deferral payment arrangement made; been suspended pending objection or appeal or; tax debt less than R100

How does the roll-over of the Employment Tax Incentive (ETI) work?
An incentive amount may be rolled over –: if the incentive amount available exceeds employees’ tax due in a month. The excess may be carried forward to the next month;

Will the Employment Tax Incentive (ETI) also be applicable to seasonal employees (i.e. 6 or 8 months) and/or fixed term contract employees?
The Act does not exclude them as long as they meet the requirements i.e. :-has a valid South African ID :- is 18 to 29 years old (please note that the age limit is not applicable

How will I determine an employee’s age for Employment Tax Incentive (ETI) purposes?
An employee’s age must be determined at the end of each month for which the employer is claiming the ETI. Therefore an employee will start to qualify in the month that they turn 18 and will end in the month prior to the month

Why can’t an employer back-date the Employment Tax Incentive (ETI) claim to October 2013?
The ETI became effective 1 January 2014, and an employer is only eligible to receive the ETI from this date. However, back-dated ETI may only be claimed for a maximum of 6 months which falls within a 6 months employer reconciliation period (EMP501),

How will the Employment Tax Incentive (ETI) affect current learnership agreements and the internships process?
If an employer meets all the necessary requirements, the employer is entitled to claim the ETI, the learnership allowance and the internship process remains unaffected.

What is an associated person?
An associated person is any entity in relation to each other which is directly or indirectly managed or controlled by substantially the same person (e.g. two subsidiaries under a holding company).

Must an employer pay the minimum wage to be entitled to the Employment Tax Incentive (ETI)?
Yes, an employer will be entitled to the ETI, provided at least the minimum prescribed wage for the relevant sector is paid or if a minimum wage doesn't apply, is paid a wage not less than

How does an employer determine the “monthly remuneration” of an employee who qualifies?
The “monthly remuneration” of a qualifying employee is the amount paid or payable for that full month.

Will an employer qualify for a refund; should their Employment Tax Incentive (ETI) be more than their Pay-As-You-Earn (PAYE) liability?
Yes, employers will qualify for a refund if their ETI is more than their PAYE liability but certain requirements must be met. See more information on the ETI refund process.

Do I qualify for the Employment Tax Incentive (ETI), if my employees are paid on the commission bases?
As commission is not a wage, it doesn’t not allow the employer to claim the ETI. Where an employee receives a basic wage + commission, the employer will be allowed to claim the ETI

We are experiencing problems on [email protected]™ when capturing more than one IRP5 certificate for an employee in a submission period.
If you MANUALLY capture IRP5 certificates you need to calculate the total ETI values for all IRP5 certificates and capture it against the last IRP5 certificate.

Is it possible to increase your ETI liability or utilised amounts from what was initially declared?
No, you are not allowed to increase your ETI liability or utilised amounts from what you initially declared. This is according to legislation.