workmen’s compensation (COID) registrations

Compensation Fund

The Compensation for Occupational Injuries and Diseases Act, No 130 of 1993 (COIDA) provides for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, or for death resulting from such injuries or diseases.

Who must register with the Compensation Fund?
Employers – All persons who employ one or more employees for the purpose of their business or farming activities are required to register and to pay annual assessments to the Compensation Fund. A separate registration is necessary for each separate branch of a business unless an arrangement for a combined registration has been made (This is done with Rating Section).
Who is an employee?
Any person who has entered into a contract of service with an employer and also includes temporary staff, members of a Closed Corporation or Directors of a Company.
What is the return of earnings?
At the end of January each year, forms are sent to all the registered employers (W.as.8). These forms must be completed and returned not later than 31 March. The information on the form assists with the raising of assessment. CF-Filing website allows you to electronically file, pay and receive your Letter of Good Standing.
What is regarded as earnings?
For the purpose of assessment, earnings mean before deductions any payments made to an employee which arise out of his employment and include:

  • Overtime of a regular nature, (not intermittent or irregular overtime).
  • Bonuses of any kind, including incentive bonuses and annual bonuses.
  • Commission, even though the amount may vary from month to month.
  • The cash value of food and quarters supplied to employees as part of a remuneration package. Cash value of fringe benefits such as a company car, free accommodation or accommodation at a reduced rate, etc.
  • Travel and other allowances paid regularly, as part of the package.
  • Where the employee is remunerated in accordance with a package of benefits, all items forming part of the package, other than employer contributions such as medical aid contributions.
  • Earnings/Drawings paid to working Directors of a Company or Members of a Close Corporation. (To be declared separately) only if it is a fixed Salary.

Excluded are the following:

  • Payments of a reimbursive nature.
  • Overtime worked occasionally.
  • Payments for specific non-recurring tasks which do not form part of an employee’s normal duties.
  • Ex Gratia payments.
  • Intangible fringe benefits such as subsistence and traveling costs, lunch and costs for business meetings.
  • Travel and other allowances paid occasionally.
  • If a director/member’s remuneration is profit sharing, the Director/Member is not an employee in terms of the Act.
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