“Our employees are our greatest asset”. This is the quote that most organisations are passionate about and understand that employees are in fact the driving force behind the success and performance of the organisation.
A Skills Development Fund (SDL) is a system which is used to ensure that the workforce is upgraded with relevant upgraded programmes and subsequently provides training grants to employers when they send their employees to attend training under a specific training system.
There are significant benefits to investing in a Skills Development Fund. This includes the improvement of work, productivity and the retention of a skilled workforce. The compliance aspect of the Skills Development programme is dependent on the size of the organisation.
Illustrative examples of the above compliance requirements includes companies with an annual payroll of more than R500 000 should be contributing to the 1% skills levy.
In order for the skills development programme to take place, there are definitive tax rebates and grants that have been made available to businesses. This requires businesses to be in close adherence and registration with the relevant Sector Education and Training Authority, in conjunction with an annual Workplace Skills Plan and Annual Training Report.
Additional benefits to investing in a Skills Development Fund include operational efficiency in order for resources to be allocated, micromanagement is significantly decreased and demands are met in the economy.
Contact Bullivant Accounting for more information.