How do I setup ETI?
ETI on PaySpace is calculated according to the qualifying conditions for ETI as specified in the employment tax incentive act 26 of 2013. To access the employment tax incentive act select the following link: Employment Tax Incentive (ETI) Act.
The following components is used to calculate ETI on the system:
- ETI Remuneration
- ETI Remuneration hours
- ETI Wage
- ETI Wage Hours
- ETI Minimum Wage Rate Per Hour
- ETI Actual Wage Rate Per Hour
- ETI Period Count
The employee also needs to meet the following criteria:
- The employee must not be an Independent Contractor.
- The Nature of Person of the employee must be type A - Individual with ID or Passport number, type M - Asylum Seeker, Type R - Refugee.
- The employees' Age must be between 18 and 29, unless the employee falls within a Special Economic Zone.
- The employees' Actual Wage Rate Per Hour component must be equal to or higher than the Minimum Wage Rate Per Hour component.
- The employee must be employed after 1 October 2013.
- The employees' monthly remuneration needs to be less than R6500.00
All of the above criteria need to be met and the components have to be present on the Notes section of an employee's Edit Payslip and Recurring Payroll Components screens, in order for ETI to calculate, as the system uses them to validate if the employee meets the qualifying criteria for ETI.
Important! It is necessary to link employees to the ETI Minimum Wage Rate Per Hour and ETI Actual Wage Rate Per Hour components as the system uses them to initiate the Wage Qualifying Test in the background. In order to pass this test, an employee's Actual Wage Rate Per Hour component's value must be bigger than or equal to the Minimum Wage Rate Per Hour component's value.
The following components need to be added on company level before employees can be linked to them,
Navigate > Configuration > Payroll > Payroll Config > Payroll Components
1. ETI Remuneration
2. ETI Remuneration Hours
3. ETI Wage
4. ETI Wage Hours
5. ETI Minimum Wage Rate Per Hour
Related FAQ
Note!
The ETI Actual Wage Rate Per Hour and the ETI Period Count are statutory components and will already be added to the Note components.
You will still need to select the relevant indicator for each respective employee in order for ETI to calculate, this can be done from the employee's Recurring Payroll Components or via Bulk Actions screen.
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