With reference to the Government Gazette No 50386, 27 March 2024, the deadline for submitting the Annual Return of Earnings for the 2023 assessment period is extended to 30 June 2024.
Return of Earnings submitted after 30 June 2024 will be charged a 10% penalty for late submission.
As a registered employer, you are required to contribute a certain percentage of employee’s earnings to the Compensation Fund.
An earning statement detailing the total employees’ earnings must be submitted to the Fund. These earning statements must stipulate the nature of your business, the number of employees and their total earnings (salaries and wages) for the assessment period, from the beginning of March to the end of February (tax year).
Each industry is given a percentage that must be calculated on employee taxable earnings.
Earnings to be included in the COIDA Return are:
- Gross salary
- Overtime paid regularly
- Bonuses of a regular nature e.g. (Annual Bonus)
- Commission paid regularly
- The cash value of food and quarters provided to employees as part of their remuneration package
- Cash value of fringe benefits – company car, accommodation, reduced rates, etc.
- Earnings / Drawings paid to working Directors of a Company or Members of a Close Corporation
When completing the COIDA return the following information must be captured:
- Actual employee earnings per month and head count (Directors & Members in separate column).
- Projected earnings and head count for the coming year.
The total amount of salaries and wages paid / submitted as Earnings, combined with the category in which the business is registered, will determine the amount payable by the employer to the Compensation Fund.
Once the Return of Earnings has been submitted, the employer will be issued with a Notice of Assessment / Invoice (W.As.6) which indicates the amount owing to the Compensation Commissioner based on the salary information contained in the Return of Earnings.
Payment to the Compensation Fund must be made within 30 days from the date the Return of Earnings has been submitted.
In terms of Section 83(6) of the COID Act, if an employer fails to furnish the Compensation Commissioner within the prescribed period with a Return in terms of Section 82 in respect of a particular period, the Director-General may:
- Assess the employer on the basis of the earnings estimated in accordance with section 82(5);
- Impose upon and recover from the employer a fine not exceeding 10 percent of the amount so assessed.
FHBC offers a variety of services and are assisting our clients with their Annual Return of Earning submissions.
Our Cloudteam suggest a solution like SimplePay or PaySpace for your unique payroll requirements, these platforms calculate all compliance requirements effectively, which saves you time and money when you need to comply to the regulatory requirements and submissions. Please reach out if you would like to migrate to one of these solutions.
Should you require assistance with the submission of your Annual Return of Earnings, please feel free to contact us: Adv Lorraine Oosthuysen (lorraine@fhbc.co.za) or Monique Smit (monique@fhbc.co.za).