It is important for employers to take note of the different regulatory filing obligations to ensure that they are compliant.
Compensation for Occupational Injuries and Disease Act (COIDA)
- The "Workmen’s Compensation Act" is the outdated term in South Africa, superseded by the Compensation for Occupational Injuries and Diseases Act (COIDA) 130 of 1993.
- COIDA provides a state-funded system to compensate employees who are injured or contract diseases through and during their employment, or deaths resulting from such injuries or disease, and requires employers to register and pay assessments to the Compensation Fund.
- COIDA governs the Funds and determines how and by whom the fund is administered and the conditions for eligibility for compensation.
- Anyone who employs one or more workers (including a domestic worker) must register with the Compensation Fund within seven (7) days after the first employee was employed.
- Employers are required to make an annual contribution to the Compensation Fund, based on the worker’s earnings and calculated by a rate that is fixed per industry subclass.
- In the event of a work-related injury or illness, the employer has the obligation to complete and submit specific forms (W.CI.2 and W.CI.4) to the Compensation Fund within seven (7) days to initiate a claim.
- Temporary portal shutdowns and shifting ROE filing windows force last-minute manual work and increase risk of late submissions.
- Once an employer adheres to all the requirements of COIDA a Letter of Good standing will be issued.
Unemployment Insurance Fund (UIF)
- The Unemployment Insurance Act (Act 63 of 2001) is legislation that establishes the Unemployment Insurance Fund (UIF) to provide short-term financial relief to workers during unemployment, illness, maternity, parental or adoption leave, and to the dependants of deceased contributors.
- An employer who has an employee who works for 24 hours or more per month (including a domestic worker) must register the employee with the Department of Labour for UIF.
- The total contribution is 2% of an employee’s gross remuneration, with the employee contributing 1% and the employer contributing 1%.
- The employer needs to register with uFiling for submissions and to pay contributions.
- An employer can register his/her domestic worker telephonically at 012 337 1680 or via email at domestics@uif.gov.za
- The uFiling system frequently experiences failures and accessibility issues, causing delays and risks of non-compliance for businesses.
- When an employer struggles with access to the uFiling system the employer is advised to contact the call centre on 0800 030 007. At the call centre certain security questions will be asked and the answers must be correct, otherwise the profile might be blocked.
- The UIF returns must be submitted and paid no later than the 7th of each month for the preceding month, either directly to SARS or through the uFiling system.
- The uFiling system must be visited often until the opportunity to file the return online arises.
Skills Development Levy (SDL)
- The Skills Development Levy was imposed to encourage learning and development in South Africa.
- Once an employer expects that the total salaries will be more than R500 000 over the next 12 months, the employer becomes liable to pay SDL, calculated as 1% of their annual payroll.
- The employer must register for SDL, together with PAYE and UIF via the SARS eFiling system.
- Payments must be made within seven (7) days after the end of the month during which the deduction was made. If the last day for payment falls on a public holiday or weekend, the payment must be made on the last business day before the public holiday or weekend.
- Payments can be done via eFiling, EFT through the internet or at a branch of one of the relevant approved banking institutions.
- Levies paid to SARS are distributed by SARS to the Sector Education and Training Authority (SETA) they regard the employer to be registered with. The employer has the obligation to ensure that the allocation of the levy by SARS is to the correct SETA.
- Employers can claim back some of the levy contributions from the SETA to use for training and development of their employees.
EMP201
- The EMP201 is a payment declaration in which the employer declares the total payment together with the allocations for PAYE, UIF, SDL and Employee Tax Incentive (ETI), if applicable. The totals are paid by the employer to SARS monthly.
- A unique Payment Reference Number (PRN) is pre-populated on the EMP201 and is used to link the actual payment with the relevant EMP201 payment declaration.
If you have any enquiries, please contact Anél Crous (anelv@fhbc.co.za) to direct you to the applicable employee for assistance.