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LEVIABLE AMOUNT – HOW IS IT DETERMINED?


The Leviable Amount, as defined in the fourth schedule of the Income Tax Act, represents the total remuneration paid or payable by an employer to its employees during any month. This amount is crucial for determining the employer's liability for employee tax and is primarily based on payroll figures. Only employees on the payroll contribute to the calculation of the Skills Development Levy, which aims to promote workforce training and development.

An organisation’s Leviable Amount is defined in the fourth schedule of the Income Tax Act. It is the total amount of remuneration, paid or payable or deemed to be paid or payable by an employer to its employees during any month for purposes of determining the employer's liability for any employee’s tax in terms of that schedule, whether or not such an employer is liable to deduct or withhold such an employee’s tax.

 

Essentially, the determination of an organisation's Leviable Amount is based on its payroll. Therefore, only employees on the payroll determine the variable amount of Skills Development over an organisation's measurement period. Thus, an employer must use the total amount of remuneration to determine the Skills Development Levy.

 

As per the 2008 Verification Manual, the source of evidence of an organisation's Leviable Amount would be payroll documentation, EMP201s or EMP501 and its annual statement.

 

Skills Development Services are available to guide members on any issues relating to their Leviable Amount.

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