COIDA Return of Earnings
in 3 Days

Return of Earnings (ROE) is a mandatory annual submission for South African businesses to the Workman’s Compensation Fund. This submission details the total salary and wage expenditure of a company from March of the previous year to February of the current year. It’s crucial because the Fund uses this information to calculate the amount payable by the employer in assessment fees. Timely submission of ROE ensures compliance with the law, enables businesses to apply for a COIDA Letter of Good Standing, and is necessary for tender applications.

Non-compliance with COIDA requirements can lead to several penalties:

• Late submission of ROE incurs a 10% penalty (Sect 83(2)).
• Failure to submit ROE results in an estimated payment based on an estimate (Sect 83(6)(a)).
• Non-payment of assessment leads to a 10% penalty (Sect 87(1)) and interest on late payments at the prevailing prime rate.
• Late incident reporting also results in penalties.
• Not registering with the Compensation Fund can lead to penalties in the event of an employee’s claim due to an accident/death (Sect 87(2)(a)) and is considered an offence (Sect 81(3)).

COIDA assessment fees are annual contributions determined by the Workman’s Compensation Fund based on the total wage expenditure and the nature of employees’ work. Higher risk professions may incur higher fees due to the increased likelihood of occupational injuries or harm. These fees are reviewed annually to ensure they are fair and reflective of the risks associated with various professions.

We would recommend that you study the following practical articile which includes a Return of Earnings Calculator.

Use our Free Return of Earnings Calculator to determine your estimated COIDA assessment fees today.

Upon receiving a Notice of Assessment from the Compensation Fund, the employer is required to:

• Make the first payment within 30 days of receiving the notice.
• Pay at least 20% upfront before requesting to pay the remainder in monthly instalments.
• Understand that failure to meet a payment deadline results in the full amount becoming due immediately.

Complying with ROE submissions offers significant benefits:

• It enables the renewal of the COIDA Letter of Good Standing, which is essential for tender applications.
• It ensures that employees are covered for injuries or death that occur at work.
• It demonstrates compliance with South African labor laws, enhancing business credibility.

Registering for COID you will need:

1. a valid South African ID,
2. a Company Registration document,
3. a COID Registration form proof of payment of your registration fees.

You can learn more about COID registration here.