1. COIDA : EMPLOYERS ASSESSMENTS

2. LEGISLATIVE MANDATE Constitutional Mandate: Legislative Mandate:
Mandate of the Compensation Fund (CF) derived from section 27(1)(c) – All South Africans have a right to social security
Legislative Mandate:
Public entity of the Department of Labour
Compensation for Occupational Injuries and Diseases Act no. 130/ 1993 as amended by the COIDA 61/1997
Objective of COIDA:
Provide compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees, or for death resulting form such injuries and provide for matters connected therewith

3. REVENUE GENERATION
The CF generates its revenue from assessments paid by registered employers on the basis of a percentage of the annual earnings of their employees. This rate is fixed per industry subclass.
23 Industries
102 sub-classes
Assessment rates reviewed annually (based on the claims experience)
The Act, however, makes provision for a minimum assessment to ensure that the assessment is not less than the administrative costs incurred.

4. DEFINITIONS Employer : Exempted employer:
Any person, including the State, who employs one or more employees
Exempted employer:
An employer exempted in terms of section 84:
National & Provincial spheres of government
9 Municipalities (certification of exemption)

5. Definitions ….. Employee:-
A person who has entered into or works under a contract of service or apprenticeship or learner ship with an employer, whether the contract express or implied, oral or in writing and whether the remuneration is calculated by time or by work done or is in cash or in kind, and includes;
A casual employee employed for the purpose of the employer’s business
A director or a member of a body corporate who has entered into a contract of service with the body corporate in so far as he acts within the scope of his employment in terms of such contract
A person provided by a labour broker against payment to a client,
Excludes domestic workers, gardeners, sole owner...

6. OBLIGATIONS OF AN EMPLOYER
All employers conducting any business in the Republic of South Africa must register with the Compensation Fund
Pay annual Assessment (Sec 86)
Report all accidents and or occupational diseases (Section 38). W.Cl.2/W.Cl.1.

7. OBLIGATIONS OF AN EMPLOYER
Important Sections 80 to 89
Register as an employer with the Compensation Fund (Sec 80) – W.As.2.
Keep records of employee’s earnings (Sec 81)
Furnish annual Return of Earnings (Sec 82) – W.As.8.)
Assessment fo employers (sec 83)
Exempted employers (sec 84 – read with sec’s 31 and 88)
Variation of tariff of assessments (sec 85)
Payment of assessments (sec 86)
Penalties for non-payment of assessments (sec 87)
Contributions by employers individually liable and mutual associations (sec 88)
Mandators and contractors (sec 89)
Chief Directorate Communication |

8. CONTRACTORS AND SUB- CONTRACTORS
Contractor or sub contractors to register with the Fund and pay assessment
Failure to comply with the COID Act by the sub contractor will make the mandator or contractor to be responsible for any claims from the sub contractor’s employees
The contractor may recover such payments direct from the sub contactor

9. MUTUAL ASSOCIATIONS Existence:
Operate under a licence issued by Minister of Labour for specific period (renewable)
Employers in these classes may transfer to mutual associations
Employers should be registered with CF for at least a year before transfer to mutual associations
Rand Mutual Assurance Company Ltd (Rand Mutual)
- Class 4 (mining industry)
Federated Employers Mutual Assurance (FEM) - Class 5 (Building and construction)

10. FAILURE TO COMPLY ? Failure to comply results in:
Penalty will be imposed for late submission of ROEs (sec 83(2) - 10%)
Estimations will be done if no returns (ROEs) are submitted (sec 83 (6)(a).
Penalty on non-payment of assessments (sec 87(1) - 10%)
Interest on late payment of assessment (prevailing prime rate)
Penalty for late reporting of accidents
A penalty is imposed where an employee meets accident/death and employer is not registered with CF (not exceeding full compensation payable to the employee) (Sec 87 (2)(a))
Offence

11. CHALLENGES: ASSESSMENTS
Non-compliance by employers
Unregistered employers
Late/non-submission of Return of Earnings (ROEs)
Incomplete forms (registrations and ROEs)
Nature of business (multiple business)
Under declarations (CF vs UIF vs SARS EMP 201)
Non-payment of assessments
Power of attorney not submitted by consultants/agent

12. CHALLENGES: ASSESSMENTS…..
Backlogs
Sub-class changes
- Late reporting/notification (Sec 80 – any changes in 7 days)
Assessment revisions
CF – capturing errors
Employers incorrect declarations (over/under declaration of earnings)
Dispute between employer & consultant/agent
Return-to sender-mail (RTS)
Relationship between employer & agents (addresses)

13. HIGH-LEVEL ASSESSMENT PROCESS

14. REGISTRATION FORM

15. REGISTRATION FORM

16. HOW TO COMPLETE A REGISTRATION FORM?
Every part of the registration form must be duly completed
Mark with a X the type of the business
Part 1 must be completed i.r.o. the business
Part 1.1: Date on which the first employee was employed (usually also the start of the business)
Part 1.2: Trading Name of company and postal address and code
Part 1.3: Physical address where the business office is situated – if we need to visit the employer and for claim allocation
Part 2: Must be completed i.r.o. the owner of the business
The following documents must be attached:
Sole proprietor – certified copy of the ID document.
Close Corporation – Copy of the CK1 and CK2 documents.
Company – Copy of the CM1 and CM29 documents – CIPC documents.
Partnership - Certified copy of the ID document.
Organisation/Association – Copy of NPO certificate (None Profit Organisation).
Trust – Copy of the Trust certificate + copy of ID document (Letter of Authority).

17. PART 3 of the Registration form
Part 3. Must specify the nature of the business:
A detailed description of the nature of business activities e.g:
For dealer/retail: specify the goods sold/supplied and whether repairs are undertaken
For construction: specify the nature of the construction undertaken e.g. building, civil, steel construction
For mining: whether underground and / or opencast mining is undertaken
For manufacturing: specify what do they manufacture and specify the materials used in the manufacturing process
For plant/equipment hire: specify whether operators are supplied
Security services – whether security guarding is undertaken?
Waste Management – whether waste removal / collection is undertaken and what the waste management entails?
For labour hire/brokers: Specify to which industries the labour is supplied and the number of employees supplied to each industry
For cleaning: Specify if it is industrial or office cleaning – window cleaning inside or outside, street cleaning, garden services. Etc….

18. RETURN OF EARNINGS FORM

19. REGISTRATION FORM

20. ANNUAL ASSESSMENTS /RETURN OF EARNINGS SUBMISSION
All the registered employers are to submit the Returns of Earnings in terms of Section 82 of the COID Act.
The Returns must be submitted by the due date determined by the Commissioner which is on or before 31 Mach each year.
Failure to submit by the due date, the employer will be liable for the penalty for late submission as per Section 83 of the COID Act.
The Compensation Fund introduced the submission of Returns of Earnings online as from 08 May 2012.
We encourage all the employers to file their returns of earnings online.
No revisions will be entertained see the attached
Once you file online. The invoice will be generated with the amount you need to pay and the bank details thereof

21. NOTICE OF ASSESSMENT/INVOICE

22. PAYMENT OF ASSESSMENTS
Employers to pay within 30 days of notice of assessment
Employers may apply in writing to settle assessments in instalments
Instalment period not exceeding 12 months
20% of balance due required upfront for instalment arrangements
Should the instalment fall overdue, the full amount becomes due and payable immediately

23. IMPROVEMENTS Online submission of ROEs (ROE Website)
Implemented 8 MAY 2012
Automated Letter of Good Standing (LOG)
Implemented November 2013
Enforced w.e.f 1 April 2014

24. How to generate the Letter of Goodstanding
The letter of good standing can only be generated online 24/7.
You go to
Username & Password it’s the same as the one used when submitting returns of earnings
Use the …… number on the CF registration number then you link your company
Then you can generate your letter
The letter will be generated
NB: The letter of good standing can be validated using the certificate number

25. LETTER OF GOODSTANDING
CRITERIA TO QUALIFY FOR LETTER OF GOOD STANDING:
Employer must be registered with the Fund as per section 80 of the COID Act,
Employer must have submitted all ROEs as per section 82 of the COID Act,
Employers must be fully assessed as per section 83 of the COID Act,
Employers must have paid/ settled all outstanding debt as per section 86 of the COID Act.
The turn‐around time to issue letters of good standing is 5 (five) days.
NB: Letters of good standing are issued on a month‐to‐month basis to employers that have entered into an instalment arrangement.

26. A VALID LETTER OF GOOD STANDING

27. Thank You…