Professional Skills Development

**** Alert

LMA FAUD ALERT 🚨 🚨 If you’re considering these lma learnerships with Sdp here’s what you need to know to protect yourself from being misled. 1.They Will Likely Do Stipend *****: They will state in their contract that your monthly stipend is a decent amount, they claim you’d be getting around R4000+ p/m. On Time. But in reality, I was only getting R400 a month from each. They’ll tell you that the rest goes toward “tuition,” but there’s no transparency or proof of where that money is actually going. 2.They’ll Inflate Your UIF Contributions: Because companies are supposed to report your earnings to UIF, they report the full stipend amount even though you only get R400 they claim you earn R4000+ monthly. This might seem harmless, but it’s actually very misleading. The inflated UIF contributions make it look like you’re earning more, which is good for the company’s image but doesn’t benefit you. They use the UIF claims to mislead you. 3. Reporting for SARS: Companies offering learnerships do report stipends to SARS to maintain transparency. However, if they report these as full, taxable income without specifying they’re stipends, it can make it appear as though you’re earning a full salary. Instead of reporting this as a stipend from a learnership, they lie abd claim you are employed at their company and a sales agent and you get a salary. This could leave you responsible for paying income tax on an amount you never actually received. 4. Government Incentives: South Africa has incentives to encourage companies to offer learnerships, and these typically require companies to report the stipends they pay. However, companies are expected to be honest in these reports and not misrepresent the amount to inflate the appearance of their contributions. 5. Impact on You: If your stipend is misreported as higher than it actually is, it results in a tax bill that’s unfair to you, especially if you’re receiving only a fraction of what’s reported. Learnerships are meant to be supportive programs, not ones that burden you with unexpected taxes. 6. They’ll Misreport Your Income to SARS, Which Will Create a Tax Burden: They will report you income to SARS as if you are getting thousands every month, even though you are only receiving R400 from each company. This means you now owe income tax on money you’ve never received. This benefits them because they can claim tax breaks or incentives for training programs, but it leaves you responsible for unexpected tax bills. 4. How This Works in Their Favor: Reporting inflated earnings lets these companies look like they’re paying fair stipends, so they avoid scrutiny. They might also receive more government incentives or subsidies for training programs, while you’re the one bearing the financial consequences. 5. How It Hurts You: You’ll be left with a tax bill on income you didn’t get, and your UIF contributions will be based on an inflated amount, complicating things if you need to claim later. Plus, if you’re relying on this learnership to support yourself, you’ll be given way less money than promised. Be Careful: If you’re offered a learnership, ask for clear, written proof of your actual monthly earnings and ensure it matches what they’re reporting to SARS and UIF. Don’t settle for vague answers about “tuition” or other deductions – insist on transparency to avoid unexpected tax burdens and financial strain.