As a way of ensuring South African citizens are employable by possessing the skills necessary to successfully complete tasks is a national priority. By improving the skills’ level of citizens you ensure future job opportunities and so too the growth of the South African workforce.

 

Why are learnerships important?

Offering skills development programmes to South Africans means that you are building a skilled workforce who are capable of contributing to the economy. Skilled employees are proven to be more productive and competitive which drives companies to monetary goals. You should invest in your biggest assets: your employees. With a skilled labour pool we can build our economy to great heights and ensure equal opportunities are offered to all South Africans.

With technological advances and the rate at which the skillset required to be effective changes we need to be sure to keep up. The best way to do so is through complying with SETA requirements and offering employees skills development training in programmes like learnerships. If this is not enough incentive to sway you, consider the fact that you could qualify for a tax rebate.

At SERR Synergy we offer industry-specific and generic learnership programmes specifically designed for businesses that wish to qualify for additional learnership tax rebates and SETA funding. This includes those who wish to maximise their BEE points and qualify for additional bonus points on their BEE Scorecards. These skills development programmes have been proved to optimise Skills Development Levy refunds, increase profit and cash flow, and ensure a more productive and motivated workforce.

How does a tax rebate work for learnerships?

Rebates, allowances and grants are all ways in which learnership programmes aiding in compliance with the Skills Development Act. Discretionary grants are allocated at SETA discretion to employers seeking to provide training forcritical skills in specific sectors. These discretionary grants can come in the form of skills programmes, qualifications, learnerships and apprenticeships.

As a means of encouraging employers to provide skills development programmes like learnerships to promote job creation a learnership tax incentive has been put in place called a “learnership allowance”. This allowance may only be given once the learner, employer and training provider agree to it. This agreement must then be registered with the specific sector related SETA. It is therefore only applicable to registered learnership agreements and contracts of apprenticeships entered or completed during the tax year.

This allows employers who provide learnerships an additional tax deduction above the usual remuneration that can be deducted.Tax rebates can come in the form of an allowance which is deducted from the employer’s income when the sum of their taxable income has been calculated. The learnership allowance or deduction can be deducted at the beginning of the programme and further allowance can be collected once the programme is complete. The sum of the tax rebate allowance depends on when the agreement was registered, when the programme was completed and whether the person is able-bodied or not.

Make use of skills development programmes like SETA-accredited learnerships for a better trained future. Tax rebates and education mean that all parties gain from the experience. These programmes can grow our workforce into one to be reckoned with while scoring high on your BEE Scorecard. With a well-trained workforce skills development programmes can help carry the South African economy to new heights. Now all you need is a consultant to put you on the right path.

Contact SERR Synergy and we will get you started.