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Last Updated Tuesday, March 11, 2014 10:16:03 AM

       
 

The Compensation for Occupational Injuries and Diseases Act, No 130 of 1993

The Department of Labour, has released useful documents on the Compensation for Occupational Injuries and Diseases Act (COIDA) to assist members in submitting the Return of Earnings

  • The Return of Earnings form (W.As.8) (57Kb PDF)
  • Important information and guidelines on submission, letter of good standing, final earnings, increase in minimum assessment per section 83(2)(b) and the definition of earnings (41Kb PDF)

Incentives for online submissions, effective 1 April 2013. (2012 ROEs)

In order to motivate employers to register on the website and speed up the assessment and payment process, an incentive has been granted to employers so that they receive a benefit for using the ROE Website. These incentives have been granted by the Director-General of Labour and are applicable for the 2013/14 financial year.

The incentive will constitute the following:

    Action

    Pay within 30 days

    Pay within 60 days

    Pay within 90 days

    Employer processed their ROE via the website

    10% discount on assessment value

    5% discount on assessment value

    2% on assessment value

Discounts

The Department of Labour has informed SAICA that clients need to pay the full amount, the discount process still needs to be finalised and will be effected by the Department.

The conditions to qualify for the discounts are as follows:
  1. All returns of earnings (ROEs) must be submitted online by 30 April 2013 via the ROE Website.
  2. Penalties for late submission of 10% will be levied on all ROEs submitted after 30 April 2013.
  3. Employers who submit their returns after 30 April 2013 will not qualify for discounts.
  4. All outstanding payments, including the latest (2012 ROE) must be settled in full within 30 days of invoice date by 30 April 2013 in order to qualify for a 10% discount on the 2012 ROE only.
  5. All outstanding payments, including the latest (2012 ROE) settled in full within 60 days of invoice date by 31 May 2013 will qualify employers for a 5% discount on the 2012 ROE only.
  6. All outstanding payments, including the latest (2012 ROE) settled in full within 90 days of invoice date by 30 June 2013 will qualify employers for a 2% discount on the 2012 ROE only.
  7. Penalties for late submission of 10% will be levied on all ROEs submitted after 30 April 2013.
  8. Interest and other penalties will be levied on payments received after 30 June 2013.
  9. All payments received after 30 June 2013 will not qualify for the incentives (i.e. discounts).
  10. For example, an employer that files annual returns on or before 30 April 2013 has 90 days in which to settle account in full and qualify for the discounts as stated above. The employer that settles account in full after 31 July 2013 (outside 90 days), will be charged interest and penalty for late payment from 1 August 2013. 

9 July 2013 - Advertising Standards Authority of South Africa  

The discount process was not clearly understood by employers. An employer lodged a complaint against the Department of Labour for misleading claims. He stated that the advertisement did not mention that one has to pay the entire outstanding amount first, only for the Department to refund the allocated discount at their leisure. The complainant paid on time, deducted the advertised discount, and went to the respondent's offices to collect a letter of good standing only to be told that there is still a shortfall to the amount that makes up the 10% discount. The employer could not obtain a letter of good standing due to the short payment.

The advertisement stated that you will receive the discount on assessments SETTLED within 30 days. The Directorate is of the opinion that settled would be interpreted as paying the outstanding amount in full.

In light of the above, the Directorate is of the view that the advertisement is not misleading as suggested by the complainant and therefore does not contravene Clause 4.2.1 of Section II of the Code of Advertising Practice.

Amnesty

The Department has also provided for amnesty to submit outstanding return of earnings not submitted for the last 4 years. The Department stated that amnesty will only apply to the clients that are already registered but have not submitted ROE's for previous years.

In new information released on 29 April 2013 the Department stated the following:
  1. Employers who have not previously registered with the Compensation Fund are given amnesty to do so and submit annual returns as per the COID Act. These employers must also submit online by 30 April 2013 and pay assessments before 30 June 2013 in order to qualify for incentives.  The incentive is applicable to the 2012 ROE only, for the assessment period 1 March 2012 to 28 February 2013.
  2. The normal practice is that new employer registrations (employers that have been trading and paying salaries and wages but had not registered with the Compensation Fund) are required to provide return of earnings for the last four (4) years, however, if there was a claim before the four years then they are required to submit all the returns from the date of the claim. In the spirit of fairness these employers cannot enjoy the same benefits provided to the registered employers that have been complying with the provisions of the COID Act. Interests and penalties will not be levied until 30 June 2013. Interest and penalties will be levied from 1 July 2013.

Letters of Good Standing

The Department of Labour has issued an important notice to all its COIDA registered employers and emerging employers regarding the criteria for the issuing of letters of good standing effective from 1 January 2013. Read more.

The letter of good standing will be issued for a period of one year, expiring 30 April 2014, for all employers that meet the above requirements. Employers who enter into an instalment arrangement will be issued with a letter of good standing on a month-to-month basis until their accounts are fully settled. Employers placed on instalment plan will qualify for the discounts only when their accounts have been settled in full by 31 July 2013. Employers are encouraged to refrain from requesting to be issued with interim letters of good standing when they have not paid their accounts and must refuse to be issued with one on a periodic basis (i.e. 3 months, 2 months; etc) unless they have been placed on an official instalment plan. Only under special circumstances caused by the fault on the part of Compensation Fund will these letters be issued by the officials appointed by the Director of Income.