{"id":9534,"date":"2025-05-28T10:30:02","date_gmt":"2025-05-28T08:30:02","guid":{"rendered":"https:\/\/dotnewsconnect.co.za\/acc\/?p=9534"},"modified":"2025-05-28T10:30:05","modified_gmt":"2025-05-28T08:30:05","slug":"youth-day-how-businesses-can-benefit-from-the-eti","status":"publish","type":"post","link":"https:\/\/dotnewsconnect.co.za\/acc\/2025\/youth-day-how-businesses-can-benefit-from-the-eti\/","title":{"rendered":"Youth Day: How Businesses Can Benefit from the ETI"},"content":{"rendered":"\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201cTrust the young people; trust this generation&#8217;s innovation. They&#8217;re making things, changing innovation every day.\u201d (Jack Ma, Co-Founder Alibaba Group)<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">South African businesses are always looking for ways to foster growth and innovation while still reducing costs.&nbsp; &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One way to achieve both is to employ young people. Young workers bring unique advantages that can transform your organisation. What\u2019s more, the government subsidises part of the employment costs for qualifying young employees through SARS\u2019 Employment Tax Incentive or ETI.&nbsp;<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">What young employees can bring to your business<\/h6>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tech savvy:<\/strong>\u00a0More comfortable with new technologies, young employees can accelerate digital adoption in your business.<\/li>\n\n\n\n<li><strong>Fresh perspectives:<\/strong>\u00a0Young employees often introduce innovative approaches and creative solutions.<\/li>\n\n\n\n<li><strong>Adaptability:<\/strong>\u00a0Young people tend to be more flexible and better equipped to respond to sudden changes and unexpected circumstances.<\/li>\n\n\n\n<li><strong>Fast learning:\u00a0<\/strong>Fresh out of formal education, young people often learn more readily and are eager to apply their skills.<\/li>\n\n\n\n<li><strong>Energy and enthusiasm:\u00a0<\/strong>The energy and optimism of younger workers can positively impact team dynamics and workplace morale.<\/li>\n\n\n\n<li><strong>Future-proofing:<\/strong>\u00a0Young employees help businesses keep up to date with technological developments, emerging trends and the millennial and Gen Z markets.<\/li>\n<\/ul>\n\n\n\n<h6 class=\"wp-block-heading\">How the ETI benefits local companies<\/h6>\n\n\n\n<p class=\"wp-block-paragraph\">The ETI makes it more cost-effective for companies to employ young people and to harness all the benefits mentioned above.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Essentially, this incentive subsidises part of your employment costs for qualifying young employees for two years. There is no limit to the number of qualifying employees that an employer can hire.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The young employees\u2019 wages are paid by the employer in full, and the ETI is claimed by reducing the employer\u2019s monthly Pay-As-You-Earn (PAYE) liability by the calculated ETI amount. This creates immediate positive effects on your cash flow.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It goes without saying that hiring more employees at a lower cost \u2013 and the boost of youthful energy they bring \u2013 will positively impact productivity and innovation in any company. Many South African businesses use the ETI to create a competitive advantage, build a talent pipeline for the future, and enhance their Corporate Social Responsibility credentials.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">How the ETI works\u00a0\u00a0<\/h6>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><img decoding=\"async\" src=\"https:\/\/www.dotnews.co.za\/Code\/Uploads\/Article\/2025\/NewsletterTables\/Tables_June2025_FINAL.jpg\"><br><em><strong>* Adapted from SARS&nbsp;<\/strong><\/em><\/p>\n\n\n\n<h6 class=\"wp-block-heading\">Common ETI pitfalls<\/h6>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Claiming for non-qualifying employees<\/li>\n\n\n\n<li>Incorrectly calculating ETI amounts<\/li>\n\n\n\n<li>Failing to adjust claims after the 12-month threshold<\/li>\n\n\n\n<li>Not maintaining proper payroll records\u00a0<\/li>\n\n\n\n<li>Overlooking the \u2018monthly remuneration\u2019 definition and required adjustments.<\/li>\n<\/ul>\n\n\n\n<h6 class=\"wp-block-heading\">How professional assistance makes a difference<\/h6>\n\n\n\n<p class=\"wp-block-paragraph\">The ETI offers significant benefits, but it also comes with considerable compliance requirements and potential penalties for incorrect implementation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our team of experienced accountants and tax professionals stays up to date with the ever-changing regulations, uses professional systems to identify qualifying employees, accurately calculate claims, and keep proper records, and is ready to assist if any issues, compliance checks or audits arise.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this way, we ensure your business can maximise the ETI benefits \u2013 and the benefits of having young employees &#8211; while minimising compliance risks.<br><strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Speak to us if you need help taking advantage of the ETI.<\/strong><\/p>\n\n\n\n<p style=\"border-top: 1px solid #dedfe0!important;padding-top: 20px!important;margin-top: 20px!important\"><strong>Disclaimer:<\/strong>\u00a0The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.<\/p>\n<p style=\"text-align: right\">\u00a9 AccountingDotNews<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cTrust the young people; trust this generation&#8217;s innovation. They&#8217;re making things, changing innovation every day.\u201d (Jack Ma, Co-Founder Alibaba Group) South African businesses are always looking for ways to foster growth and innovation while still reducing costs.&nbsp; &nbsp; One way to achieve both is to employ young people. Young workers bring unique advantages that can [&hellip;]<\/p>\n","protected":false},"author":101015,"featured_media":9535,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-9534","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Youth Day: How Businesses Can Benefit from the ETI &#8226; AccountingDotNews<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dotnewsconnect.co.za\/acc\/2025\/youth-day-how-businesses-can-benefit-from-the-eti\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Youth Day: How Businesses Can Benefit from the ETI &#8226; AccountingDotNews\" \/>\n<meta property=\"og:description\" content=\"\u201cTrust the young people; trust this generation&#8217;s innovation. 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