Employer Obligations Archives - Company Partners

Understanding Return of Earnings Submissions (ROE) for 2025

Gert — Fri, 07 Mar 2025 06:48:36 +0000

Employer Obligations

Understanding Return of Earnings Submissions (ROE) for 2025

Published on 7 March, 2025

It is very important for South African businesses to keep up with the Return of Earnings (ROE) submission standards set by the Compensation for Occupational Injuries and Diseases Act (COIDA). Following the rules on time keeps your business out of trouble with the law and looks out for the health and safety of your workers. Company partners have helped 4012 employers file their Return of Earnings properly and on time in 2024.

In this article, we use our experience and knowledge to explain why COID ROE is important, what the latest annual thresholds are, how to calculate it, give you a step-by-step filing guide, and finally, how we can help you.

How to Understand Return on Earnings (ROE)

Every year in April, employers have to provide the Workmans Compensation Fund with a document called CF-2A Return of Earnings (ROE) form. This document lists all the wages that employees received during a certain assessment period, which is referred to as the year of assessment.

As required by the Compensation for Occupational Injuries and Diseases Act (COIDA), this form must be completed and assessment fees paid. This also allows you to request your Letter of Good Standing once payment is completed for the assessment fee.

The Assessment Fee that the company pays, is basically its share of the compensation fund that will pay out in case an employees get sick or hurt at work. Being up to date with your Return of earning filing and assessment fees guarantees that employees will get financial help from the Compensation fund, instead of claiming it directly from the company . If you need help with navigating Workmans Compensation in South Africa, we have a comprehensive guide to assist.

What to Submit for Return of Earnings?

The Compensation Fund requires you to confirm the actual earnings for the previous assessment year as well as the provisional earnings for the new assessment year.

Actual earnings relate to the actual number of employees and their earnings for the previous year.

Provisional Earnings is an estimate of the number of employees and their earnings for the current year.

For example – April 2025 submission will include:

Actual Earnings (01 March 2024 to 28 February 2025)
Provisional Earnings (01 March 2025 to 29 Febebruary 2026)

Need assistance with your ROE?

Our COIDA Experts have helped thousands of South African businesses to submit their Return of Earnings accurately.

Get a FREE ROE Consultation

Why should the ROE be filed with the Department of Labour?

The ROE submission is important for several reasons, firstly without it your employees can’t claim from the fund, the business is unable to receive its Letter of Good Standing, it is required by law, and it also shows that the company cares about its workers’ health. Employees are covered by the Compensation Fund if their submission is correct and made on time. This keeps them from losing money if they get sick or hurt on the job. Also, companies that want to get a Letter of Good Standing —which is important for getting government contracts or bids—must often follow ROE requirements.

Important Dates for COIDA Returns or Compensation Fund for 2024

Companies can expect the following timeline based on what has happened in the past, even though the exact dates for 2025 have not been announced yet:

Deadline for Submitting a ROE: The deadline for submitting a ROE is usually between 1 April and 30 June of each year. So, the assumed time to submit this year will be from 1 April 2025 to 30 June 2025.
Payment of Assessment: Once the ROE is submitted, employers get an assessment letter that tells them how much they need to pay the Compensation Fund. Think of this as your yearly bill for employee insurance. Usually, this payment is due 30 days after the date of the notice.

Notification of Business Changes: Within seven days of any change, employers must notify the Compensation Fund of any changes to the business, such as a change in address, type of business, or contact information.

Stage	Estimated Deadline
ROE Submission Opens	1 April 2025
ROE Submission Closes	30 June 2025
Payment Due	30 Days After Assessment Notice
Business Details Update	Within 7 Days of Any Changes

Missing payments, making mistakes in your paperwork or simply ignoring COIDA compliance takes several years to rectify. It is highly recommended to ensure you are and remain compliant with the aforesaid to avoid waiting years for any feedback.

Minimum and Maximum Earnings: Limits for Each Year

Earnings Thresholds for 2025

The Compensation Fund sets annual earnings thresholds to determine assessment calculations. These thresholds help standardise employer contributions and ensure fair assessments for all businesses, regardless of size.

Threshold Type	Amount (2024-2025)
Maximum Earnings per Employee	R597,328 per annum
Minimum Assessment Value	R1,530 per annum

Examples of ROE Calculations

It is crucial for businesses to correctly calculate and report employee earnings to avoid errors in assessment and potential disputes with the Compensation Fund.

If you know these criteria, you can be sure that your COIDA compliance and ROE entries are right.

Employee	Monthly Salary	Annual Salary	Reportable in ROE?
Alice	R25,000	R300,000	Yes (below threshold)
Thathu	R25,000 + R25,000 bonus	R325,000	Yes (below threshold)
Dan	R60,000	R720,000	Only R597,328 is reportable

Use our Free COIDA Return of Earnings Calculator to determine the estimated minimum Assessment Fee / Return of Earnings which your business will need to pay to the Compensation Fund. It takes less than 5 minutes to complete.

So, in summary; let's say:

In the event that an employee makes more than R597,328, only that amount is used in the estimate.
The assessment rate (for example, 2% of the salary) is based on the risk group (e.g. Security Industry) of the employer’s business.
Employers must make sure that their numbers are correct so that they don’t have to pay late payment fees and interest.

You can view the various industry classifications here.

When companies submit their Return of Earnings (ROE) correctly, it helps them follow COIDA rules and makes sure that their Letter of Good Standing stays up to date. It can take years to settle a disagreement with the Compensation Fund over salary information, so make sure that the information you give them is correct.

Overtime pay should only be included in an employee's earnings if they are usually paid to work extra hours. On the W.A.S. 8 form, you should decide if extra pay is necessary based on what works best for most of your employees.

How to submit your ROE (in detail)

Step 1: Go to the ROE Online portal to get to the Department of Employment and Labour’s online filing system.

Step 2: Sign up or log in. If you are using the site for the first time, you will need to register your business. Current users log in with their passwords.

Step2A: If you are registering you will need to have your Company Tax number, Director ID and Organisation Type (e.g. NPO, Trust, Pty etc) and registration number at hand. Additional information will be requested based on your organisation type

Step2B: You will then be requested to upload documents as proof of the above, and complete more detailed information about the Organisation such as which category the business operates, number of employees etc.

Step 3: Once you are logged in, select the “ROE Menu” at the top and select “Submit Return of Earnings” from the dropdown menu.

Step 4: Add information about your business here, and make sure that all of the information about your business is correct. This includes your contact information, business group, and type of business.

Step 5: Enter the actual wages earned by each worker during the evaluation time to make sure that any extra money earned is properly recorded.

Step 6: Check and send in all the data you’ve entered to make sure it’s correct before you submit the ROE.

Step 7: Finally, you will get a proof message after submitting. Keep this for your records.

What will happen if you miss the deadlines?

Several things could happen if you don’t pay or turn in the Return of Earnings (ROE) on time:

If you send in your ROE reports or fees late or don’t pay them, the Compensation Fund may charge you penalties and interest (usually 10%).
A business can’t get or renew its Letter of Good Standing without an up-to-date ROE application and payment. This might make it harder for them to get contracts from the government or keep doing business properly.
If businesses don’t follow COIDA rules, the Department of Employment and Labour could go to court and issue penalties, compliance orders, or enforcement letters.
If an employee files a pay claim and the company’s return on equity (ROE) is out of date, the claim may not be approved right away or may even be turned down. This could lead to an audit of your workplace by the Department, compliance orders, or even fines. Furthermore, the company will be responsible for the employee’s medical bills and loss of compensation.

How Company Partners Can Help

It can be hard to keep up with COIDA rules and file ROEs, especially for new businesses that are still getting started. This is where our help would be very useful with:

Hassle-Free ROE Submissions: We make sure that your ROE is submitted correctly and on time, which keeps you from having to deal with penalties and compliance problems.
Help with a Letter of Good Standing: Do you need a Letter of Good Standing for a bid or a contract? We speed up and simplify the process.
COIDA Registration and Compliance: We take care of the whole registration process for you if your business is new to COIDA or hasn’t joined yet. It’s possible that we can get you set up and registered online in as little as one week!
Advice from Experts: Our experts keep up with changes to COIDA regulations and offer ongoing support to make sure your business stays in line. You can get in touch with us to talk to a safety expert for free.
Free COIDA ROE Calculator: We offer a free COIDA Return of Earnings Calculator to assist you with calculating your ROE submission and ensure that your numbers are accurate.

Last Thoughts

It is very important to remember your 2025 COID ROE submission dates if you want to stay in compliance, protect your workers, and keep your business in good standing. Employers can avoid fines and make the workplace safer by making sure workers know when due dates are, how grades are calculated, and how to submit work. This will help you when you’re looking for contracts and bids.

If you have any further questions about COID ROE submissions, you can look at our Return of Earnings FAQ guide to answer questions you may have. We also have a summary on how to navigate and submit your ROE online and a Free guide that explains the facts around a Letter of Good Standing in South Africa.

Are you having trouble with submitting your ROE?

Let us handle it for you, making sure you follow COIDA rules without any stress. Contact us right away, and our specialists will take care of all of your COID needs.

Get a FREE Consultation

The post Understanding Return of Earnings Submissions (ROE) for 2025 appeared first on Company Partners.

Free COIDA Return of Earnings Calculator for South African Businesses

Gert — Mon, 06 May 2024 10:27:17 +0000

Business Tools and Resources, Employer Obligations

Free COIDA Return of Earnings Calculator for South African Businesses

Published on 6 May, 2024

Updated on 8 April, 2025

Introducing our innovative COIDA Return of Earnings Calculator, designed to streamline the assessment fee calculation process for South African businesses. The Free Coida Payment Calculator determines the estimated Assessment Fee / Return of Earnings which your business will need to pay to the Compensation Fund. It takes less than 5 minutes to complete. Test the Calculator now OR learn more about how it works.

COIDA compliance with Ease

This coida payment calculator is your go-to tool for estimating your COIDA ROE compliance costs based on your payroll and industry details.

Experience the ease of use, precision, and quick results, freeing you from the complexities of manual calculations.

With our ROE Calculator, ensure accurate compliance, avoid potential penalties, and save valuable time, allowing you to focus more on the growth and well-being of your workforce.

At the time of updating this blog post, the coida payment calculator has been used a total of 983 times.

In first place, Companies in the Construction Industry made 318 submissions. The Professional Services industry came second with 187 submissions.

We will delve into the data down below.

The Importance of COIDA Compliance

All businesses must pay an annual COIDA assessment fee based on their payroll (normally referred to as your Return of Earnings). Non-compliance can lead to penalties, including issuing fines (10% on top of the assessment fee) if you file your Return of Earnings after the due date.

If your business regularly applies for Tenders and Contracts, non-compliance will negatively impact your chances of being awarded the tender/contract.

Non-compliance will mean you won’t be able to acquire your Letter of Good Standing.

Practically, this means that if you were on the construction site when this happens, the Principal contractor will take full responsibility for your non-compliance as set out in Section 89 of the Compensation for Occupational Injuries and Diseases Act.

Remember that the COIDA compliance is one side of the coin for companies. Companies need to ensure they have a health and safety file which includes a health and safety plan to protect the employees. This is in accordance with the Occupational Health and Safety Act.

You can view the contents of a Health and Safety here.

ROE Calculator Example

Accurate calculation of these fees is therefore essential to maintain business integrity and compliance. Many people make the mistake of over- or under-estimating their ROE fees, thus the Return of Earnings Calculator was created.

Our coida payment calculator has been updated with the Assessment Tariffs provided by the Department of Labour for the year of 2025. This allows for a more accurate calculation of your coida calculation.

We have already received positive news from our customers who made use of the updated coida payment calculator. Nevanka from DKN Transport used our calculator and compared it with her accountants coida calculation. She shared with our team that the calculations were spot on!

Introducing the Free COIDA Assessment Fee Calculator

Simplify Your COIDA Assessment Fee Calculations! We’re excited to offer a free, user-friendly calculator designed to help businesses quickly and accurately estimate their COIDA assessment fees. Benefits of using this tool include:

No cost: Absolutely free for all users.
User-friendly interface: Easy to navigate and use.
Accurate estimates: Adheres to the Department of Labour guidelines.

How the ROE Calculator Works

The calculator simplifies the process of estimating your annual COIDA fees (Assessment Fees).

Users need to input their industry type and estimated annual payroll, and the tool efficiently calculates the estimated necessary fees, streamlining the compliance process.

Our Teams get asked all the time “What exactly is the assessment fee?”

Well, according to Section 83 of the Compensation for Occupational Injuries and Diseases Act. It is the payment your company makes every year to the fund.

This basically means you have paid your “insurance” for the year to cover injured employees at work. The Act ensures a minimum assessment fee to cover administrative costs, guaranteeing that no business pays less than the minimum required amount. These assessments are crucial for maintaining compliance and protecting your workforce as it covers the payment of claims made against the fund.

The next question we get after what is the assessment fee is for, is “what is my assessment fee?” and “How will be determined?”

In short it is determined by the calculation mentioned below and the main function of the calculator. Each business falls into a specific category such as Construction or Medical etc. Then each of these categories are further broken down into subclasses with specific explanations.

This classification system determines contributions to the Compensation Fund based on the nature and associated risks of your business activities.

COIDA Calculation Formula

For businesses, accurately estimating the COIDA assessment fee is crucial for budgeting and compliance. The correct formula to calculate this fee is:

Assessment Fee= (Estimated Annual Payroll100) × Assessment Tariff Rate

Example Calculation with Minimum Fee Consideration

If a company in a sector classified at a 0.75% assessment tariff rate has an estimated annual payroll of R2,000,000, the calculation would be:

Assessment Fee = (R2,000,000/100) ×0.75= R15,000

Visit the Department of Labour to access the full Assessment Tariff Rate.

Don’t forget to claim your Free Consultation with a COIDA Expert Today!

Claim Your FREE Consultation now!

COIDA ROE Calculator Data

We mentioned above that over 900 companies made use of our COIDA Payment Calculator to determine their coida calculation.

The chart below shows the main industries which found value in using the Calculator.

NB: The calculator was used by Companies to test out different coida calculations, so take all the statistics with a bit of salt.

In Summary:

Most frequent used industries and outcomes from the calculator

Industry	Avg. Total Pay	Avg. Assessment fee
Construction	R977,645.00	R17,705.00
Professional Services	R2,373,687.00	R8,536.00
Agriculture	R982,560.00	R12,139.00
Trade and Commerce	R3,018,143.00	R16,759.00

The industry which used the calculator the most was the Building & Construction Industry with 318 submissions to calculate their COIDA Assessment fees.

What needs to be remembered that this is very “high level” information, and the industry does not accurately reflect exactly what the Company does.

Each Industry has various subclasses, which provides more insight into exactly what their operations entail. Below we break down the Sub Classes which fall under the Building and Construction Industry.

Industry	Subclass Code	Description
Building Construction, etc.	500	General Building Operations: Includes all building activities like demolition, painting, plastering, tombstone erection, and swimming pool construction and maintenance. Electrical contracting included. Special rating may apply for buildings over two storeys or structures over 12m in height.
	501	Specialized Installation and Services: Covers composition floor installation, wooden floor surfacing, ceiling erection, gas fitting, plumbing, sports ground construction, and more. Also includes window cleaning, sign erection, swimming pool maintenance, and anti-soil erosion work.
	502	Tunneling and Drilling Operations: Involves tunneling, rock drilling, and blasting related to structures or waterworks, sanitary engineering, and well sinking. Applicable if these are primary business activities.
	505	Water Boring and Drilling: Covers water boring and other unspecified drilling activities.
	512	Civil Engineering Operations: Includes earth moving, road making, irrigation construction, sanitary engineering, bridge building, railway construction, and more. Asphalting related to road making falls under this class.
	521	Irrigation and Water Works Maintenance: Pertains to the maintenance and operation of irrigation and water works not otherwise classified.
	530	Steel Structures and Industrial Plants: Erection and dismantling of steel structures, industrial plants, and scaffolds. Also includes alteration, repair, or demolition of tall structures (over 12m) as a business.
	531	Installation and Maintenance Services: Covers installation, repair, and maintenance of lifts, heating, ventilation, refrigeration systems, as well as windmill and fence erection as separate businesses.
	532	Steel Reinforcing Operations: Specialized in steel reinforcing activities.

The industry which came into second place (if we ignore “Other”), for using the calculator the was the Professional Services Industry with 119.

Once again, this is the “high level” industry which doesn’t reflect the specific industry.

Professional Services entail:

Industry	Subclass Code	Description
Professional Services, etc.	2200	Scientific and Technical Services: Encompasses businesses such as analysts, assayers, analytical chemists, architects, surveyors, geologists, consulting engineers, court messengers, and observatory operators.
	2210	Legal and Financial Services: Includes businesses of accountants, auditors, advocates, attorneys, conveyancers, notaries, law agents, and quantity surveyors. Covers editing and journalistic work (excluding printing and publishing), press agencies, and separate typing businesses. Also includes any other professions not specifically categorized.

In Third place was Trade and Commerce with 54 submissions.

Trade and Commerce is quite broad as you can see in the below table:

Industry	Subclass Code	Description
Trade, Commerce, etc.	1511	General Wholesale/Retail Trade: Includes wholesale or retail liquor dealers, grocers, confectioners without baking operations, sandwich suppliers, market agents, butter or egg merchants, fish, poultry, game dealers, and more. Covers agricultural co-operative activities, greengrocers, florists, seed merchants, and cold drink distributors as separate businesses.
	1520	Apparel and Accessories Trade: Encompasses wholesale and/or retail businesses of tailors, outfitters, drapers, furriers, milliners, and boot and shoe shops.
	1532	Electronics and Instrument Trade: Deals with musical instruments, computers, household electrical appliances, and video/TV equipment. Includes installation, assembling, and repairing of these items, as well as electric clock erection and armature winding as separate businesses.
	1540	Specialized Retail Trade: Covers a wide range of businesses including curio shops, antique dealers, sports goods, bottle and bag merchants, leather and fabric dealers, departmental stores, and more. Also includes agricultural machinery dealers, hardware merchants, and furniture dealers without woodworking operations.

Lastly, we have the Agriculture Industry with a total of 54 submissions.

It was expected to have a higher submission rate by the Agriculture industry due to importance of the industry in SouthA Africa’s employment.

Industry	Subclass Code	Description
Agriculture, Forestry, etc.	111	General Farming Operations: Includes any farming activities not specifically categorized under other subclasses. Examples: oyster cultivation, sheep shearing, dipping contractors, and agricultural shows.
	114	Forestry and Crop Farming: Engaged mainly in forestry, horticulture, or crop farming (excluding sugar cane and tea). Operations include grass cutting, baling, orchard cultivation, and ploughing. Use of tractors and power-driven saws is common.
	116	Mixed Farming: Combines livestock farming and crop tillage equally. Involves the use of tractors and power-driven saws.
	118	Sugar Cane and Tea Farming: Primarily focused on growing sugar cane and tea, including sugar milling activities like cutting, loading, and weighing.

Act now!

Use our ROE calculator and secure your business's COIDA compliance with ease.

Calculate My Return Of Earnings

Minimum COIDA Assessment Fee

It’s essential for businesses to be aware that COIDA stipulates a minimum assessment fee of R1530 (at the time of writing).

This means that should you have estimated Assessment fee of R1530 and less you will pay a minimum of R1530. This ensures that all businesses contribute a baseline amount towards the Compensation Fund, which helps in handling claims efficiently and supports the overall sustainability of the worker’s compensation system.

Expert Consultation for Accurate COIDA Fee Assessment

To further support South African businesses in complying with COIDA regulations and accurately determining their assessment fees, Company Partners is pleased to offer a complimentary consultation service. This service is designed to provide personalised assistance to ensure that your COIDA Registration and assessment fee calculations are precise and tailored to your specific business needs.

How Our Expert Consultation Works:

Personalised Attention: Speak directly with a Company Partners compliance expert who understands the nuances of COIDA regulations.
Accurate Quote Generation: Our experts will help you calculate your exact COIDA assessment fee, considering all relevant factors such as your industry classification and payroll specifics.
Guidance and Support: Besides calculation assistance, receive professional advice on how to manage your COIDA compliance efficiently to avoid penalties and ensure coverage.

Benefits of the Free ROE Consultation:

Cost Savings: Avoid overpayments and ensure you are not underpaying, which could lead to fines.
Compliance Assurance: Ensure that your business meets all regulatory requirements, safeguarding against potential legal issues.
Expert Insights: Gain insights into best practices for managing workplace compliance and insurance.

You can also view our detailed Video on how to complete your COID and ROE documents on your own:

Conclusion

Don’t miss out on this opportunity for a free, expert consultation that could save you time and money while simplifying your COIDA compliance process. Contact Company Partners today to schedule your session and secure peace of mind about your COIDA assessment fees.
By leveraging expert guidance, businesses can not only ensure accuracy in their COIDA fee calculations but also enhance their overall compliance strategy, contributing to a safer and more secure working environment.
Staying compliant with COIDA is essential for any business. Our calculator not only aids in achieving compliance but does so effortlessly. Don’t miss out on this essential tool—try it now and ensure your business stays on track with minimal fuss.
We recently launched our second tool for businesses in South Africa to assist with their compliance. We are happy to announce the SmartTax Tool which provides a quick and simple method to determine if you have any tax savings.

Speak to one of our consultants for free to find out more on how to utilise this tool!

Contact us today!

The post Free COIDA Return of Earnings Calculator for South African Businesses appeared first on Company Partners.

Understanding COIDA and the Return of Earnings Submission: Interview with Vivian Dube

Gert — Tue, 09 Apr 2024 08:11:46 +0000

Table of Contents

Business Compliance, Employer Obligations

Understanding COIDA and the Return of Earnings Submission: Interview with Vivian Dube

Published on 9 April, 2024

In the world of Compliance, April is known as “COID” month, and for good reason. Every April, those who are registered for COID know that the Return of Earnings Online Submission (ROE) is due at the Department of Labour. This is an annual report that employers must submit to the Compensation Fund, showing how much they paid their employees during the year.
We interviewed one of our Compliance Specialists at Company Partners, Vivian Dube, to answer some frequently asked questions about COIDA Registration and the Return of Earnings including the return on earnings formula.

From the benefits of registration to a step-by-step explanation of the COIDA registration form and the return of earnings process including the applicable forms. We cover it all in our video below:

Understanding COIDA in South Africa

Lets dive right into the most frequently asked questions we get from business owners as well as the answers when it comes to COID and the Return of Earnings Formula:

1. What does COIDA stand for?

COIDA Stands for the Compensation Of Injury and Diseases Act.

2. Is COIDA Registration Compulsory?

Yes, according to COIDA, the Compensation for Occupational Injuries and Diseases Act, most employers are required to register for Workmen’s Compensation. Every employer must sign up with COIDA within 7 days of hiring their first employee.

Do you need COIDA Registration?

Get a FREE Consultation with a trusted COIDA Registration Specialist today!

Get a FREE COIDA Consultation

Let's take a look at the COIDA registration form and the 6 Parts that need to be completed:

Part 1: Mark with an X what type of entity you are, then complete the employer information such as Company Name, Company address etc,

Part 2: This section is related to the information regarding the owner of the entity you have listed in Part 1.

Part 3: This is an important section. You will need to explain exactly what you are doing with your business so that the Department of Labour understands your nature of business. For example: If you are in construction, you need to further explain what type of construction work your business does, eg: mechanical engineering construction or demolition.

Part 4: Who is the main contact person in the company? Their details are required in this section. This is the person the Department of Labour will contact if they need to get in contact with your company.

Part 5: This is also a very important section as it affects your Return of Earnings Submission.
The employer needs to complete the information for their employees including the number of employees they have as well as the total estimated salaries to be paid to these employees. This needs to be the total estimated amount for the period listed on your form. These factors will influence the Return of Earnings Formula.

Part 6: This information is important for companies. You will need to provide your Company Banking details so that the Fund can compensate you, should the need arise. You will not be compensated in your personal capacity (using your personal banking details) so it is important to have a business bank account in order for your application to be successful.

3. What are the benefits of COID Registration?

Employees and employer financial security: By the employer contributing on an yearly basis to the department, they will be covered by the Department of Labour, should any of their employees get injured or ill. The employees also benefit because they get taken care of should they become ill from any work related injuries or diseases.
Tenders and contracts: Having a Letter of Good Standing is a basic requirement for applying for government tenders or contracts.

4. What is a COID assessment?

The assessment is simply the amount the Workman’s Compensation Fund decides applies to you, considering the risk involved in the type of work your employees do and your total, annual wage/salary expenses.
You get an assessment based on the Return of Earnings you submit to the fund.
Your assessment fees are payable to the Workman’s Compensation Fund up to 30 days after receiving a Notice of Assessment.

Let's take a look at the Return of Earnings submission form. Here there are 3 Sections that need to be completed:

Section A: This section is all about the owner/employer and all the information pertaining to them and the Company.

Section B: On the top left, you will find the actual earnings section and top right is the provisional earnings. Actual earnings relate to the actual number of employees and their earnings for the current period listed on the form. The Provisional Earnings is an estimate of the number of employees and their earnings for the period listed on the form.

Section C: This section is to confirm that all the information you have completed on the form is correct. If it is found that you have entered incorrect/false information, you will be held liable. If you get a representative to do your declarations or submissions on your behalf, you will need to provide a power of attorney form.

Try our Free 2024 ROE Calculator

Unsure how to use the Return of Earnings COIDA Calculator?

Read our detailed article on Return of Earnings and how you can benefit.

Read More Now

5. Do COIDA registration assessment fees change?

Yes, as we have just demonstrated on the ROE form, there is lots of detailed information required that could affect the assessment fees – they adjust annually based on business categories and classes. For instance, a high-risk industry like construction might see a different rate change compared to a retail business. Your business could also employ more employees over time which will also change the assessment fee.

6. Why do you need to be registered for COIDA before you can get a Letter of Good Standing?

A Letter of Good Standing is an official certification that verifies your business maintains compliance with the South African Workmen’s Compensation Fund. This crucial document, issued directly by the fund, signifies that your business is in good standing. To obtain this letter, it’s essential that your company is not only registered for COID but also possesses a valid COID registration number and has its Return of Earnings submissions timely updated. This will allow your company to complete the letter of good standing renewal process.

7. I don’t employ anyone yet. Should I still register for COIDA?

Yes, it’s a legal requirement under Section 80 of COIDA to do your Compensation Fund Registration, which is crucial for future hiring. If you are a new business, and don’t have any employees yet, you can list yourself as a working director to register for COID and add new employees as and when your business grows. COIDA is not just a legal formality but a critical step for your own protection as well.

8. What is the Return of Earnings Formula?

At the time of writing the Department of Labour calculates your Return of Earnings (the same formula applies to your assessment fee) as follows:
Earnings divided by 100 X rate = assessment payable.
The earnings refer to your total payroll for the applicable 12 months. After being divided by 100 it is multiplied by your Nature of Business Risk rate (it differs from industry to industry).
Use our ROE calculator to obtain an estimate of your minimum Return of Earnings fees.

Speak to a Business Consultant today for free regarding the return of earnings submission.

Contact us today!

The post Understanding COIDA and the Return of Earnings Submission: Interview with Vivian Dube appeared first on Company Partners.

FAQ’s on COIDA Registration in South Africa

Cerika — Tue, 22 Nov 2022 14:27:25 +0000

Table of Contents

Employer Obligations

FAQ’s on COIDA Registration in South Africa

Published on 22 November, 2022

Do you have questions about COIDA Registration in South Africa?

In this article, we will answer the Frequently Asked Questions Entrepreneurs have on COIDA Registration in South Africa.

Don't have time to read? You can also watch the FAQ Video below:

Here follows Questions and Answers to the most popular FAQ’s South African Entrepreneurs have about Registering a Company for COIDA in South Africa. Simply scroll down to the questions that are relevant to you.

What does COID stand for?

COID stands for the Compensation of Injury and Diseases. It is sometimes also referred to as COIDA, where the A stands for the word Act.

Who needs to register for COID?

Every entity who has employees needs to register for COID, as this is a legal requirement.

What do I get after registering for COID?

Once you are registered, you will receive a CF number which is your company’s unique reference number used for claims and paying your annual submissions to the department.
Upon succesful COID Registration you, you will receive a “Notice of Assessment” from the Compensation Fund, which is payable directly into the account of the Compensation Fund. This payment will cover your business for Workman’s Compensation.
You will then be able to apply for your Letter of Good Standing.

I do not have any employees; do I have to register for COID?

When you want to apply for tenders or contracts, it will in most cases be a requirement to produce a Letter of Good Standing which can only be obtained by registering for COID.
So in that case, you will need to register yourself as the working director, if you do not have employees yet. Company Partners can facilitate this registration for you.

Can I get a Letter of Good Standing without registering for COID?

As mentioned, you will not be able to receive a Letter of Good Standing without registering for COID, as the COIDA number or CF number is a requirement for you to get the Letter of Good Standing, which shows that you are not in arrears with the Department of Labour.

Are there any hidden fees when it comes to registering for COID?

Yes, you might be required to submit a return of earnings (ROE) for previous years when your company traded before you registered at the Compensation Fund. There might also be unpaid invoices which incurred interest and penalties.
Although not a hidden fee, many clients are caught off guard when they receive the Notice of Assessment, which they need to pay. This is an invoice you receive upon completion of the COIDA registration.
This invoice is based on various areas of your business assessment, such as employees’ salary amounts and the nature of your business.

When do I renew my Letter of Good Standing?

You will need to renew your Letter of Good Standing in April of every year. This means if you receive your Letter of Good Standing in January, you will need to renew it 3 months later in April again.

I have not done any work; do I have to submit my Return of Earnings?

Yes, whether the company is trading or not, you will still need to submit the company’s Return of Earnings to ensure you are compliant when applying for tenders or wanting to claim for any injuries, diseases or deaths that occur in your company.
Only submit for the months that there were earnings paid to employees. Zero earnings cannot be submitted online.
Please note that late submissions will incur extra costs.

Expert Tip: Use our Free COIDA ROE Calculator to determines the estimated Assessment Fee / Return of Earnings your business will need to pay.

If you have more questions or need assistance with your COIDA Registration, Call Us or Signup Now.

Contact us today!

The post FAQ’s on COIDA Registration in South Africa appeared first on Company Partners.

Step-by-step Guide to getting a Letter of Good Standing

Cerika — Wed, 19 Apr 2017 06:09:31 +0000

Table of Contents

Employer Obligations

Step-by-step Guide to getting a Letter of Good Standing

Published on 19 April, 2017

Updated on 11 July, 2025

Do you need a COIDA Letter of Good Standing to apply to Contracts and Tenders, but you’re not sure how, where and why?

A Letter of Good Standing (LOGS), also known as a COIDA Certificate, is essential for South African businesses applying for tenders, contracts, and construction work, but the process can feel overwhelming—especially if it’s your first time. Don’t worry.
Here’s your complete 2025 guide, with the latest processes and tips from Company Partners. In the past 3 months, we have assisted 788 businesses with COID registration and secure their LOGS.

What is a COIDA Certificate or LOGS?

A LOGS or COIDA Certificate is an official document that proves the Workman’s Compensation Fund (COID) will assist you in paying for any work-related injuries or harm to your employees, because your payments to the fund are up to date.

Why is a Letter of Good Standing required when applying for most Contracts and Tenders?

A Letter of Good Standing is essentially a form of security to most clients, as they want to make sure they’re not responsible for picking up the medical bill or life cover for anyone hired to work on their premises, in the case of work-related accidents or illnesses.
This is especially true when it comes to construction projects where the Principal of the contract can be held responsible if subcontractors don’t have their COIDA compliance in place.
In essence, it confirms that your business is compliant and that your employees are covered in the event of work-related injuries, illness, or death.
If you don’t have a Letter of Good Standing (LOGS), clients or other businesses may think your business owes the Workman’s Compensation fund money or that your employees aren’t covered by COIDA. They then assume they will not be safeguarded in the case of a work-related accident on their property.

Expert Tip: Read more here how to get Letter of Good Standing on in South Africa

What precisely is the Workman’s Compensation Fund (COID) and why do you need to pay them?

Almost every employer (with a few exceptions) is required by law to register with the Workman’s Compensation Fund (COID). In summary, it includes:
Independent contractors and freelancers
Directors/Shareholders not drawing a salary
Sole proprietors with no employees
Foreign employees working abroad (special cases)
However, exemption status must often be formally declared and approved.

This government fund helps employers pay medical bills or compensation, in the case of death, related to an injury on the job to any employee. However, there’s a yearly fee connected to this fund.
To find out more about the COID and why it will benefit your business, click HERE to read our article, What is Workman’s Compensation (COID) and why do you need it?
A Letter of Good Standing proves that you are in good standing with COID, with no outstanding yearly payments.
Without registering with COID or without paying your yearly fees, you’re not eligible for a Letter of Good Standing. In certain industries, this will result in a loss of projects, such as in logistics, construction, security, and others.

Need Assistance with your Letter of Good Standing?

If you’d like a FREE consultation with one of our experts on getting your Letter of Good Standing in order.

Get a FREE Consultation

How do I get my COIDA Certificate or LOGS?

Here’s exactly how the process works in three steps:

Register your Company with COID

The first step in getting your Letter of Good Standing or COIDA Certificate is registering your business with COID. During the process, you will have to pay a registration fee. This is determined based on your annual payroll and the risk category of your nature of business.
You can either register directly with the Labour Department or use our COID service, where our team of Experts will complete the process for you.
Our COID Registration process only takes 1 week (subject to the Department of Labour), whereas working directly through the Labour Department can take up to 3 months or more. Plus, we’ll send you all the forms and the updates straight to your email inbox.
DOCUMENTS YOU’LL NEED AS LETTER OF GOOD STANDING REQUIREMENTS:
Valid South African ID
Your Company’s Registration Document from CIPC
Your Nature of Business (basically what industry you are in)
COID Registration Form (W.As.2)
Power of Attorney (this is only necessary when using our COID service, to legally permit us to complete the application on your behalf)
Proof of Payment for your registration fees

Submit your employee expenses

In this step you have to submit your Company’s total estimated wage and salary expenses for the year (according to financial years) and industry classification (nature of business) in order for the Compensation Fund to calculate the amount payable to them.
They work out your fee as a percentage of your yearly total wage and salary expenses and risk classification. This means you have to submit your wage and salary expenses (in a Return of Earnings (ROE) document) every year.

Expert Tip: The submission deadline is usually 30 April, but check annually for deadline extensions.

Documents required:
Return of Earnings form (W.As.8) – for renewals
EMP201/EMP501 summaries – for accurate payroll data
Proof of prior LOGS (if applicable)

For first-time registrations, the submission document is included in the COID Registration form, as submitted in step one. Renewals, however, require a document called the Return of Earnings (ROE). Find out more about understanding COIDA and ROE submission here.
Once again, you can either work directly through the Department of Labour’s online portal or you can use our streamlined service, avoiding long queues and confusing admin altogether.

Expert Tip: Businesses with no employees or zero payroll must still submit a nil ROE to remain compliant.

Pay your yearly / monthly fee to COID

In about 3-5 working days after your Return of Earning document submission, the Department of Labour will send you a Notice of Assessment (NOA) stating the amount payable to COID. This is calculated in the same method as during registration.
After you’ve paid that amount, you’ll receive a Letter of Good Standing (LOGS) proving your employees are covered for a year.
If you can’t pay the yearly cost in one go, you have a monthly payment option. However, you will still need to put down a 30% deposit. Unfortunately this option also means you’re Letter of Good Standing will only be valid from month to month, upon payment.
Whenever you neglect to pay your account or forget to renew your Letter of Good Standing by the end of April, the Compensation Fund will not cover your employees during that time.
DOCUMENTS YOU’LL NEED:
Notice of Assessment (sent to you by the Department of Labour)
Proof of Payment for your yearly fees

Expert Tip: Use our Free COIDA ROE Calculator to determines the estimated Assessment Fee / Return of Earnings your business will need to pay.

What If I Miss a Deadline or Get Rejected?

A Letter of Good Standing can be denied or delayed if:

You haven’t submitted your ROE,

You have outstanding debt with the Compensation Fund,

There are errors in your documentation (e.g. incorrect SIC code),

Your business is dormant or non-compliant.

The solution? Work with a compliance specialist (like us!) to get back on track quickly and avoid rejection.

Frequently Asked Questions

My business has no employees. Do I still need to register?

You must register if you’re trading and may eventually hire employees. Submit a nil return if you have no payroll.

I only use subcontractors. Do I need COID?

Not necessarily—but if a client or contract stipulates LOGS as a requirement, you will need it regardless.

Can I get a LOGS if I’m paying in instalments?

Yes, but the LOGS will only be valid for the paid-up period (e.g. month to month).

What if I haven’t traded in the last financial year?

Submit a nil ROE and notify the Compensation Fund. You may still qualify for a LOGS.

Common Mistakes to Avoid

Incorrect Industry Classification Code (SIC). This could impact your premium rate.
Missing ROE Submissions. Even nil submissions are mandatory.
Unpaid Assessments lead to blocked LOGS.
Late Renewals. Many companies only realise this when they urgently need the letter.
Mixing up Employees vs Contractors: Contractors may not fall under COID coverage.

Why Use Company Partners?

We streamline the entire process:
Expert assistance with registrations, submissions, and renewals
Fast-track Letter of Good Standing
Avoid time-consuming errors and rejections
Get peace of mind knowing you’re 100% compliant

Book your FREE consultation now, and we’ll help you secure your Letter of Good Standing quickly and easily.

Contact us today!

Contact us today!

The post Step-by-step Guide to getting a Letter of Good Standing appeared first on Company Partners.