AUTOMATIC LEVEL 2 FOR QSE’S THAT ARE 51% BLACK OWNED

MARKETS ARE UNPREDICTABLE – COSTS ARE FOREVER
March 23, 2016
BUDGETS AND CASH FLOWS
March 23, 2016

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Automatic Level 2 exemption:

One major change in the new codes that many companies are considering is the automatic Level 2 for QSE’s that are 51% black owned and Level 1 for those that are 100% black owned. This eliminates that huge cost of compliance until such time as the annual turnover of R50 million is exceeded. It is an interesting option for QSE’s. Contact us for an in-depth discussion on this issue

Skills Development:

Another point of interest is that the new codes allow for Skills Development spend to be on black people who are not employees. This is for a limited point allocation but can be achieved through some interesting Skills Development initiatives. Contact us for more information on them. You do however still need your Workplace Skills Plan etc.

Supplier Development spend:

This new section of the scorecard need some consideration well in advance of rating. We have a relationship with a non-profit organisation that sources supplier ready recipients as well as Enterprise Development recipients. Contact us to assist identifying your opportunities here.

Sector Codes:

The DTI has repealed the Construction Sector Code and the Chartered Accountancy Sector Code. Companies in these sectors now have to measure the Generic Codes for all measurement periods ending after 30 April 2015. Companies that fall into this sector are in for major changes.

To date, only the Tourism Sector Code has been gazetted. All of the other sector codes are in the process or have been published for public comment.

Companies in the other sectors where the Sector Code hasn’t yet been repealed, or a new one gazetted, have a window of opportunity to complete an audit under their current Sector Code.

This article is a general information sheet and should not be used or relied upon 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 your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

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