COIDA stands for Compensation for Occupational Injuries and Diseases Act. It is essentially an act that ensures no-fault compensation for employees who are injured or contract diseases during their employment.
COIDA is a compulsory registration for any business with at least one employee. Below is everything you need to know about registering, who is considered an employee, and what consequences come with non-compliance.
When are you required to register for COIDA?
In terms of the Compensation for Occupational Injuries and Diseases Act (COIDA) of 1993, all employers who employ one or more part-time/casual/temporary or full-time employees for their business/farming/organisation’s activities are required to register and pay annual assessments to the Compensation Fund.
Who is considered an employee under COIDA?
“Employee” is defined by the Compensation for Occupational Injuries and Diseases Act (COIDA) as a person who has entered into, or works under a contract of service or apprenticeship or learnership with an employer, whether the contract is expressed or implied, oral or in writing, and whether remuneration is calculated by time or work done, or is in cash or in kind and includes:
- Casual/temporary employees employed for the employers’ business/farming/organisation’s activities.
- Working director of a Company or member of a Close Corporation/Body Corporate, who has entered into a contract of service, or of apprenticeship or learnership, in so far that the employee acts within the scope of his/her employment in terms of such contract. (Excluding shareholders or “silent partners” who are only paid dividends or sharing profits).
NB: A sole proprietor or partners in a partnership are not regarded as “employees” as contemplated by the Act and their earnings should, therefore, not be included.
What are the employee exclusions?
- Domestic workers;
- People who contract for the carrying out of work but engage others to carry out the work (i.e. subcontractors);
- Members of the National Defence Force and the Police Service;
- Anyone on ‘service in defence of the Republic’;
- The Act does not cover anyone performing military service or undergoing military training in the defence force.
Return of Earnings Annual Forms
During March each year, the Return of Earnings form (W.As.8 CF 2A form) is uploaded on the website for employers to download the manual form. These forms must be completed and returned by 31 March or the approved date set by the Director General (DG). The information on the form assists with the raising of the assessment.
The Compensation Fund Return Return Of Earnings (CF ROE) online system website allows you to electronically file, pay and receive your Letter of Good Standing. The earnings declared on the Return of Earnings are earnings (salaries and wages) paid by the employer to their employees and the number of employees employed during our assessment year (1st March to the end of February the following year). The CF ROE online system opens on 1 April each year for filing purposes or on the date approved by the DG
What Happens If A Business Is Not COIDA Compliant?
Failure to submit and pay the annual return will result in a 10% penalty on the final assessment. In the event of non-payment, interest will accrue until such date that all the outstanding fees are paid in full.
Conclusion
As established above, COIDA is not an optional registration, but pro-actively registering will make the process easier. Our team at Creative CFO makes registering for COIDA quick and easy so you can get back to running your business. If you would like our assistance, contact us here.
