6th Feb 2018 at 2:08 pm #65060
It seems that I am a bit mathematically challenged today…
Maybe some of the other SDF’s could assist?
SDL is disbursed as follow:
Payroll 1% to SARS = R200 000 (As example)
SARS deducts 2% = R 4 000
AMOUNT to distribute to SETA / NSF = R196 000
20% NSF = R 39 200
80% SETA = R156 800
The amount of R156 800 allocated to the SETA now becomes their new “100%”
10.5% SETA ADMIN = R16 464 (0.5% of this goes to QCTO)
20% MANDATORY GRANT = R31 360
49.5% DISCRETIONARY GRANT = R77 616
Here comes the question….
10.5% + 20% + 49.5% = 80%
R16 464 + R31 360 + R77 616 = R125 440
I am shorting R31 360 or 20%
Where does this go?
If you could please clarify or refer me to some reading material I would appreciate it.
6th Feb 2018 at 3:50 pm #65065
6th Feb 2018 at 4:15 pm #65068
7th Feb 2018 at 5:30 pm #65078
Hi Henk. Im not an expert but my understanding is that the Mandatory Grant is the sticky bit. According to legislation, Employers must receive back 20% of their levies paid to SARS, not 20% of the 80% allocated to the SETA.
Thus, employers paid R200 000 in levies. 20% of this is R40 000. This will be paid by the SETA out of their grant budget.
7th Feb 2018 at 5:51 pm #65079
Kate – that should be the equation.. But consider the following…
SARS receive the SDL, deducts their “part” for administration (being a post office) and then distributes to NSF and SETA… Already you are not dealing with the original R200 000…
Now the SETA takes “their” 80% and deducts 10.5% (0.5% goes to the QCTO) for administration…
An even smaller amount is left… Nobody could expect from the SETA to bear the brunt of 20% x R200 000 when they actually only received 80% of an amount less than that…
That being said… nobody seems to be able to explain where the additional 20% (that definitely is amiss) goes…
Thanks for the revert…
- This reply was modified 10 months, 2 weeks ago by Henk Cloete.
8th Feb 2018 at 9:14 am #65089
20% goes to national skills fund
80% of all grants are paid to the SETAS
10.5% is used for administration cost and 0.5% goes to QCTO
Balance is now 69%
20% is allocated to Mandatory grants
49% is used for Discretionary grants of which 80% must be used for Pivotal Funding and 20% for Discretionary Funding
Levies collected as you say amount to 200000
NSF get 39200 and SETA gets 156800.
10.5% of 156800 is 16464
.5% of 156800 is 784 so the new balance for grant distribution is 139552.
20% goes to mandatory is 27910.40
80 Pivotal amounts to 111641.60 – total is 139552.
100% accounted for. QED
8th Feb 2018 at 9:58 am #65090
8th Feb 2018 at 3:41 pm #65104
20th Jun 2018 at 6:22 pm #66766
The levies are disbursed as follows and as per your example – Payroll would have been R20 000 000
SDL is thus 1% = R200 000
Mandatory Grant = 20.0% = R40 000
Discretionery Grant = 49.5% = R99 000
QCTO = 0.5% = R 1 000
Sars = 2.0% = R 4 000
National Skills Fund = 18.0% = R36 000
SETA = 10.0% = R20 000
Total =R200 000
I hope this helps, even though its months later
20th Jun 2018 at 6:50 pm #66767
Thank you Zanele –
There are always new people coming in and this issue has not changed at the moment, so it is very appropriate.
If I understand the key is that the NSF is not getting 20% but is getting 18%.
So I think that Henk is looking for the Regulation that confirms that – so I think we all need to go and search – and see who can come back with the info.
- This reply was modified 6 months ago by sylvia hammond.
21st Jun 2018 at 9:22 am #66774
I am glad this has caught some attention again as I am still adamant that either the powers that be or I cannot do maths..
I attached a spreadsheet for easy reference… yellow sections open
Enjoy your day
21st Jun 2018 at 9:42 am #66776
Maybe this would help you see why I am confused….
Take a R100 note and get yourself a lot of change… (R1, 50c etc)
Now – play the following game:
You have R100 in your pocket, you need to go to the bathroom and end up paying R2 to gain access… (2%)
You now have only R98 in your pocket.
You arrive at home to find your youngest child standing there anxiously; he needs R19.60 so that he might be able to buy himself some lunch at school. (20%)
You now only have R78.40 in your pocket.
In the kitchen your wife asks you for all the cash that you have on you for food etc… You hand her the R78.40 (80%)
YOU NOW HAVE NOTHING…. (20%+80%=100%)
Your wife left for the mall with her R78.40 to go and buy food…
At shop A she spends – R7.84 (10%)
At shop B she spends – R15.68 (20%)
At shop C she spends – R38.81 (49.5%)
She gives the guard a tip – R0.39 (0.5%)
When she arrives home she tells you that she exhausted her funds and that she has no more money left???
Do you agree with her? Or do you see the conundrum I am facing??
21st Jun 2018 at 11:46 am #66778
Good day Henk
I hope this helps, you can verify the information from Department of Justice
SETA gets 80% (160 000)
NSF gets 20% (40 000)
Sars can then collect a maximum of 10%(R4000)from the money given to the NSF – as a collecting cost, in essence, that R4000 is 2% of the R200 000(skills development levy).
The SETA has to now distribute their funds to the following, they receive R160 000
Discretionary Grants R99000(49.5% of SDL) or (61.875% of R160000[SETA])
Mandatory Grant R40 000(20% of SDL) or (25% of R160000[SETA])
QCTO R1000 (0.5% of SDL) or ( 0.625% of R160 000[SETA])
SETA Admin Cost R20000 (10% of SDL) or (12.5 of R160 000[SETA])
21st Jun 2018 at 3:08 pm #66783
Unfortunately we don’t have a “feature the member of week” – I think I must ask our IT people about that. Thank you for your response. You definitely are the member of the week.
That is the first time I have had clarity on exactly how that distribution works.
I will see whether I can make a plan to get your response and Henk’s spreadsheet uploaded to our Downloads sector.
- This reply was modified 6 months ago by sylvia hammond.
21st Jun 2018 at 1:01 pm #66779
Zanele – thanks for this insightful and eye opening answer! Since the inception of this new “system” during April 2013 I have really struggled to get my mind around this one…
Now I can put this to bed…
The spreadsheet should thus look like this.
21st Jun 2018 at 4:35 pm #66786
21st Jun 2018 at 6:38 pm #66790
21st Jun 2018 at 7:12 pm #66795
8th Aug 2018 at 10:42 am #67467
8th Aug 2018 at 10:46 am #67468
8th Aug 2018 at 10:59 am #67469
8th Aug 2018 at 11:14 am #67470
Hi Des, the most up to date info is that from Henk and Zanele & Zanele confirmed with Treasury.
Look on the right for the Downloads section. At the bottom of those headings there is a link to access the downloads documents – click there and it opens all the downloads.
Just below the top – there is a heading about the Distributiion and two files – one from Henk and one from Zanele.
They explain it extemely well.
Let me know if you can’t find them.
8th Aug 2018 at 2:11 pm #67472
Thank you Sylvia, yes, those are the ones I am familiar with and with which I agree. However some people are of the opinion that the total of 70% made up of discretionary and Mandatory grants is incorrect and that the combined is now 50%. That is what I am trying to get some opinions on.
9th Aug 2018 at 4:56 pm #67482
Thanks for the clarification Des.
Well I am no maths rocket scientist so I am not going to argue, but I found that the figures that Zanele provided, which she said are verifiable with the Treasury department – make complete sense to me.
So I would suggest that the alternative idea people should take it up with the Treasury department.
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