Employers who have been claiming the Employment Tax Incentive (ETI) since January 2014, will have the opportunity to receive the excess amounts not utilised at the end of each month.
SARS has announced that the ETI refund will be available at the end of each 6 month reconciliation period. This means that ETI not utilised at the end of August 2014 may not be carried across as a balance brought forward on the September 2014 EMP201 and will instead be ring-fenced to be refunded on the payment date still to be announced by SARS.
The value of ETI utilised will be the rebate amount exceeding the total PAYE deducted for the 6 month reconciliation period. The employer will therefore receive the excess rebate as a refund. In 2014, SARS has allowed the ETI not utilised amount to be carried forward from February 2014 to March 2014. The first rebate therefore becomes due after August 2014. From now on, ETI not utilised may no longer be carried forward after each 6 month reconciliation.
The ETI not utilised value at the end of February 2015 will also result in a refund and may not be carried forward to the March 2015 EMP201.
It is important that employers ensure that their tax affairs are on order as they will not qualify for the rebate if tax returns and/or payments are outstanding. SARS may also reverse an ETI claim where an employer is not compliant on the last day of the month for which a claim was submitted. As a result, penalties and interest may be charged on PAYE debt not paid.
For more information on the ETI refund process, visit the SARS website at