Return of Earnings (ROE) submission is a mandatory annual process for employers in South Africa, where they report the total earnings and remuneration paid to employees during the assessment year to the Compensation Fund. This submission is crucial for calculating workers’ compensation premiums, which are determined based on the employer’s risk profile related to workplace injuries and occupational diseases. Compliance with ROE submission is essential to ensure fair compensation for workers and the financial sustainability of the Compensation Fund.
Importance of Accurate ROE Submission
Accurate ROE submissions are vital for several reasons:
- Determination of Premiums: The information provided in the ROE is used to calculate the premiums employers must pay to the Compensation Fund. These premiums help cover the costs of compensation for employees who suffer work-related injuries or illnesses.
- Legal Compliance: Failing to submit an accurate ROE on time can lead to penalties, legal issues, and difficulties in accessing workers’ compensation benefits.
- Sustainability of the Compensation Fund: Proper reporting ensures that the Compensation Fund can continue to provide necessary benefits to employees, thereby supporting workplace safety and health.
Submission Timeline
1. Provisional Earnings Upon Company Registration
When a new company registers, it must submit provisional earnings immediately. These provisional earnings cover the period from the company’s registration date until the end of February of the following year. For instance, if a company registers in May 2024, the employer must submit the provisional earnings covering May 2024 to February 2025.
2. Annual Submission in April
Every year in April, employers must submit two sets of information:
- Actual Earnings: For the previous assessment year, typically from 1 March of the previous year to 28 February of the current year.
- Provisional Earnings: For the new assessment year, from 1 March of the current year to the end of February of the following year.
For example, by 1 April 2024, employers must submit actual earnings for the period from 1 March 2023 to 28 February 2024, along with provisional earnings for the period from 1 March 2024 to 29 February 2025.
Avoiding Mistakes
Given the strict guidelines and potential consequences, employers must ensure that all reported information is accurate. Errors in ROE submissions can lead to significant issues, such as penalties, delays in processing workers’ compensation claims, and complications in rectifying the mistakes since the Compensation Fund does not offer a service to correct these errors after submission.
Legal Framework
1. Form WAS.8
Each year, the Compensation Commissioner sends a return of earnings form, known as WAS.8, to all registered employers. This form requires detailed information about:
- The number of employees.
- Total earnings.
- The nature of the business.
If an agent or payroll administrator handles the submission, both the employer and the agent must sign a declaration to confirm the accuracy of the information provided. This underscores the legal obligation to submit truthful and complete information.
2. Compliance with COIDA
ROE submissions are governed by the Compensation for Occupational Injuries and Diseases Act (COIDA) no 61 of 1997. Employers are required to comply with the timelines and regulations outlined in this Act. The forms can be submitted either in person at Compensation Fund offices or Labour Centres across South Africa.
Conclusion
The Return of Earnings submission is a critical requirement for employers in South Africa. It plays a significant role in determining workers’ compensation premiums and ensuring that the Compensation Fund remains sustainable. Employers must adhere to the submission timelines and accuracy standards to avoid penalties and ensure the smooth functioning of workers’ compensation processes. By complying with these requirements, employers not only fulfill their legal obligations but also contribute to the overall safety and well-being of their workforce.