What is ETI (Employment Tax Incentive)?
A tax incentive that lets employers reduce the PAYE they pay over when they employ qualifying young, lower-paid workers.
The Employment Tax Incentive encourages employers to hire young work seekers. You calculate the incentive per qualifying employee each month and claim it on the EMP201, which reduces the amount you pay to SARS. It applies for up to 24 months of an employee's employment.
The rules are strict. Unclaimed amounts are forfeited if not claimed by the end of the reconciliation period, you cannot use ETI while your tax compliance status is non-compliant, and paying any employee below the national minimum wage disqualifies the whole month's claim. Check the current qualifying criteria and amounts on SARS before you claim.
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