FASSET no longer issues non-levy paying letters: SDL exemption now confirmed through SARS
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From 1 October 2026, FASSET no longer processes applications for non-levy paying (NLP) employer status or issues letters confirming it. Employers below the Skills Development Levy (SDL) threshold must now get confirmation of their exemption from SARS. FASSET announced the change in a notice dated 28 September 2026.
What changed
Employers with an annual payroll below R500,000 no longer apply to FASSET for NLP status.
Confirmation of SDL exemption or non-liability is now handled by SARS.
FASSET will not process NLP applications or issue NLP confirmation letters.
Who it affects
Employers whose annual payroll is below R500,000, or who otherwise qualify for SDL exemption, and who want to take part in FASSET programmes. This includes many small accounting practices.
What employers must do
FASSET advises employers to:
Contact SARS about the process and requirements for confirming SDL exemption or non-liability.
Get the confirmation or supporting documents from SARS.
Submit the SARS documents to FASSET.
Sector requirement
To be recognised as an eligible NLP employer in the FASSET sector, the employer's core business must fall within FASSET's sector. FASSET may ask for documents that show the employer's core business before it allows the employer to take part in its programmes.
Registering for SDL voluntarily
Employers below the R500,000 threshold can still register for SDL voluntarily. FASSET lists these steps:
Log in to eFiling and open the function to update registration details.
Complete the EMP101e form to register for payroll taxes, including SDL.
Affiliate with FASSET (SETA 01).
Employers who register must check that they are correctly classified and allocated to FASSET (SETA 01) if their core business falls in the FASSET sector.
For guidance on SDL registration, exemption or confirmation of status, contact the SARS Contact Centre on 0800 00 7277.
Source: FASSET notice "Changes in the process for non-levy paying (NLP) employer registration status", 28 September 2026