In terms of section 82 of the Compensation for Occupational Injuries and Diseases Act, 1993 (Act No 130 of 1993) (COIDA), a registered employer shall furnish the commissioner with a Return of Earnings, no later than the thirty-first day of March in each year.
The deadline for submitting the Annual Return of Earnings is officially 31 March each year.
As a registered employer, you are required to contribute a certain percentage of employee’s earnings to the Compensation Fund, and you must submit a statement detailing these earnings every year.
The earning statements must stipulate the nature of your business, the number of employees and the amount you have paid them (salaries and wages) for the assessment period, from the beginning of March to the end of February (tax year).
Each industry is given a percentage that must be calculated on employee taxable earnings.
Earnings to be included in the COIDA Return are:
- Regular Overtime.
- Bonuses of a regular nature e.g. (Annual Bonus).
- Commission of a regular nature.
- The cash value of food and quarters provided to employees as part of their remuneration package.
- Cash value of fringe benefits – company car, accommodation, reduced rates, etc.
- Earnings / Drawings paid to working Directors of a Company or Members of a Close Corporation.
When completing the COIDA (WCA) return the following information is required per month;
- Actual earnings for the month, head count (Directors & Members in separate column).
- Project earnings and head count for the coming year.
The total amount of salaries and wages paid / submitted as Earnings, combined with the category in which the business is registered, will determine the amount payable by the employer to the Compensation Fund.
Once Return of Earnings has been submitted, you will be issued with a Notice of Assessment / Invoice (W.As.6) which indicates the amount owing to the Compensation Commissioner based on the salary information contained in the Return of Earnings.
Payment to the Compensation Fund must be made within 30 days from the date the Return of Earnings has been submitted.
In terms of Section 83(6) of the COID Act, if an employer fails to furnish the Compensation Commissioner within the prescribed period with a Return in terms of Section 82 in respect of a particular period, the Director-General may:
- Assess the employer on the basis of the earnings estimated in accordance with section 82(5);
- Impose upon and recover from the employer a fine not exceeding 10 percent of the amount so assessed.
FHBC offers a variety of services, and we are also assisting our clients with their Annual Return of Earning submissions.
Should you require assistance with the submission of your Annual Return of Earnings, please feel free to contact us: Adv Lorraine Oosthuysen (email@example.com ) or Monique Smit (firstname.lastname@example.org). If your salary and wage processing is contracted to FHBC Payroll Services (Pty) Ltd, please contact Louise-Anne Truter (email@example.com ) or the team member assigned to your business.