Workmen's Compensation - What You Need To Know

If you are an employer, you need to be registered for Workmen’s Compensation with the labour department. The Return of Earnings (RoE) submissions open on the 1st of April 2019 for the 2018 year and we would love to help you stay compliant.

You will not be able to get a letter of good standing if you have not submitted your RoE and paid the necessary assessments.

Workmen’s compensation is a state-mandated insurance that will assist employee who has suffered a work-related injury. Workmen’s Compensation is paid to the labour department and is based on the gross annual salary of employees according to the payroll system.

To submit a Workmen’s Compensation return, you need to go online on the ROE website, and you will then be notified what amount is payable to the labour department based on the information inputted. The amount payable is based on the type of industry and the risk level as well as the number of employees and gross salary.

When you submit the return, you need to submit for 2 years, the actual for the current year and then the budgeted payroll for the following year.

The assessment years also works differently than with tax years. The 2016 assessment year (with the labour department) is the same as the tax year ending February 2017 with SARS. So when you pull the payroll reports from the system, remember that for the tax year end February 2017, you need the 2016 assessment year COIDA report.

If you would like to be registered for workmen’s compensation, please let us know and we will start the necessary process. But this is not a service that we automatically include in our retainers so please let us know.

A simple test if you should be registered for workmen’s compensation is, if your employees pay UIF, then your company should be registered for workmen’s compensation.

We have had an increasing problem with the labour department and the efficiency with registering companies, so we request that you understand that we are trying our very best to be efficient but there are forces outside of our control that could be problematic.

Please let us know if you have any questions or 0116581324

Click here for more information about paying the compensation fund as an employer




Annja Louca