Stratfin Solutions recently listed on SchoolAdvisor. Having never heard of the company before, we dug in to find out more about who they are and what they do. We were amazed to discover they can save certain school staff members between R3,000 and R20,000 a year on tax. And they do this with just one small government tax incentive – Edu-TaxBack.
You could be saving your school staff thousands of rands each month with one small tweak. We chatted with Saul from Stratfin Solutions who reveals how it works and what your school needs to know.
Q1: How does it work?
In short, the school makes use of the tax-free bursary available in the Income Tax Act. The school will grant a teacher a ‘tax free bursary’ as part of your remuneration that takes into account eligible education expenses that you incur. This bursary is tax-free, meaning your tax payment reduces and you get to take home more money on a monthly basis (i.e. you pay less tax and take home more).
The best part is that the bursary doesn’t cost the school one cent more. Rather, the employee’s salary is reconstructed so that they pay less tax.
Q2: How much are teachers saving every month/year?
It all depends on their earnings and education spend. But savings can range from R2,000 to R20,000 per year. As an example: If you earn R25,000 before tax and R20,000 after tax, your bursary value could equal R5,000 for that month.
Presently, staff from the following schools are benefitting from the Edu-TaxBack: King David Linksfield, Ashton International College, King David Sandton Primary, St Peters Primary, King David Primary Victory Park, The Torah Academy, and Yeshiva Maharsha.
Q3: Who qualifies for this tax-free bursary?
If you earned below R600,000 Gross Remuneration in the last tax year and spend money on your children’s or close relatives education – then, you may qualify.
Currently, only Governing Body and Private School employees who pay tax qualify. Sadly, if you are directly employed by the education department, you do not qualify to receive this incentive.
Q4: What education costs are covered?
School and university fees from Grade R to Doctorate Level, registration costs, uniforms, textbooks, stationery, residence and transport costs are all covered.
Q5: Are their limitations?
- You need to prove that you pay for your education expenses
- There are upper limits of R20,000 per relative for school fees
- There are upper limits of R60,000 per person for Higher Education
Q6: What role does Stratfin Solutions play?
We provide training and handle all the administration, auditing, and compliance verification. We also assist the payroll department with the setup and necessary changes.
Q7: How much does it cost?
Stratfin Solutions does not charge the school to implement Edu-TaxBack. An admin fee, however, is charged to the staff member based on the tax that is saved.
Q6: What does a school need to do to get started?
Schools need to agree to join our program and agree to make changes to the payroll. The teacher (employee) then needs to complete the yearly budget which will reveal what they can save.
To get in touch with us, simply leave your details below and we’ll get back to you ASAP. We can then explain how it works in more detail for you to decide if you want to introduce it to your school.