It is an obligation of the employer to submit a declaration of annual earnings (salaries and wages paid out during the year) to the Compensation Fund. This declaration is referred to as the annual return of earnings (W.As.8). The Compensation Fund will determine the danger of the industry in which the particular business is involved and will apply a percentage rate to the amount of annual earnings declared to raise an assessment which will become payable.

The deadline for the completion and submission of the 2012 return of earnings is 30 April 2013. These returns will only be mailed to all employers not registered to submit this return online.

In order to motivate employers to register on the website and speed up the assessment and payment process, two incentives have been granted to employers who make use of the Return of Earnings (ROE) website to submit their returns online. These incentives are applicable for the 2013/2014 financial year and are effective from 1 April 2013.

  1. Discount on amount payable under assessment:

     

Action

Pay within 30 Days

Pay within 60 Days

Pay within 90 Days

Employer submits return of earnings via website

10% discount on assessment value

5% discount on assessment value

2% discount on assessment value

 

1. Amnesty to submit all outstanding returns of earnings not submitted for the last four years. Interest and penalties will not be levied until 30 June 2013.

Online registrations can be done at www.roe.labour.gov.za. Once registration has been requested, an email will be sent with the login password. Each year of return must be completed separately however zero returns are not permitted, therefore if no salaries have been paid for the period this must be taken up directly with the Compensation Fund.

But the question still remains, what is this all about?

Any employer who fails to register for workman’s compensation is guilty of an offence.

It is the responsibility of the employer to protect the safety of his employees by ensuring a safe working environment and making sure that the employees are financially protected if accidents do occur. Therefore, all employers (as defined by the act) are required to register for workman’s compensation. This means that any employer having one or more employees must register with the compensation fund and pay the annual assessments due.

The Compensation for Occupational Injuries and Diseases Act (COIDA) came into effect on 1 March 1994, replacing the old Workman’s Compensation Act. It provides compulsory compensation for most employees under a contract of employment for specific occupational diseases contracted due to exposure of the employee to certain agents or conditions found in the work environment as well as death or personal injury suffered in the course of employment.

The Compensation for Occupational Injuries and Diseases Act excludes the following:

  1. Domestic workers
  2. Anyone receiving military training
  3. Members of the South African National Defence Force or South African Police Services
  4. Anyone employed outside the RSA for 12 or more continuous months
  5. Workers working mainly outside the RSA and only temporarily employed in the RSA

Employees would also receive no compensation in respect of temporary disablements of three days or less, or those resulting from wilful misconduct, unless seriously disabled or killed.

Compensation for occupational injuries is based on the degree of disablement. Workers may be able to increase compensation if their disablement is caused by the carelessness of their employer or a co-worker.

Sources of Information:

Department of Labour and SAICA

Michelle van Coppenhagen

Supervisor, Johannesburg