Companies that have an annual payroll over R500 000 and have registered by SARS and have filled EMP201 form and are paying 1% of their payroll to the Skills Development Levy to SARS. In my understanding, SARS transfers this amount to DHET (Department of Higher Education and Training) which distributed it from there to SETA and NSF.
Below is a diagram showing the distribution of these funds:
This is information was taken from the Services Seta WSP/ATR/PTP/PTR SUBMISSION Information, 2015 document.
Companies with the help of a Skills Development Facilitator will be able to claim back from the Grants Disbursement. As you can see 20% is the Mandatory Portion and the Discretionary Portion is 49.5%.
‘The purpose of the Discretionary Portion is to encourage employers, accredited training providers, and stakeholders to contribute towards the achievement of the objectives of the Human Resources Development Strategy(HRDS), the National Skills Development Strategy(NSDS), and the Sector Skills Plan(SSP).’
The pivotal skills are the top 1o scarce skills listed within each SETA, these pivotal skills need to be considered when submitting the WSP at it influence the percentage that you can be claimed back.
If the Skill Development Levy is not claimed it is returned to SARS.
Skills Development Levy is distributed and ‘spent’ by each relevant SETA with expenses distributed for administration. Each employer can then claim back from the Skills Development Levy so that it can be used for its intended purpose.