The annual Return of Earnings (ROE) submission to the Compensation Fund is a crucial compliance aspect for all businesses in South Africa. Filing ROEs ensures employee protection from work-related injuries, diseases, or death but also enables businesses to manage their contributions effectively.
The Return of Earnings is compulsory for every employer to file annually. The document outlines the total salary amount employers pay to employees over the assessment year, which the Compensation Fund uses to calculate the employer’s contribution, ensuring adequate coverage for employees under the Compensation for Occupational Injuries and Diseases Act (COIDA).
Submitting accurate earnings information and meeting the submission deadline are critical to avoid penalties and ensure employees are covered without interruption. The following article highlights crucial aspects of submitting Return of Earnings, the difference between Annual earnings and provisional earnings and how YC Consulting is assisting employers with filing their ROEs timeously and accurately.
What is the Difference between Provisional Earnings and Annual Earnings?
Businesses completing their annual ROEs are usually faced with two terms, annual earnings and provisional earnings.
For accurate ROE submission it’s important to understand these terms, before undertaking the task of submitting the form.
Provisional Earnings
Provisional earnings refers to the estimate of the businesses total employee earnings for the upcoming assessment year. The assessment year runs from 1 March to the end of the following February (e.g., 1 March 2024 to 28 February 2025).
Submitting a realistic provisional amount ensures a smoother claims process and avoids potential penalties for underestimation.
Actual Earnings
Actual earnings is the total earnings employers pay to their employees during the previous assessment year.
The business reconciles this actual earnings figure with the provisional earnings submitted the previous year.
Any significant discrepancies may lead to recalculations of the businesses assessment.
The Assessment Process and Cost Management
The Compensation Fund calculates a business’s annual assessment by taking into account its risk rating and its total declared earnings. Higher-risk industries, like construction or mining, will typically have a higher assessment rate.
A business can manage their assessment cost in the following ways;
- By implementing effective health and safety protocols the business significantly reduces workplace accidents and illnesses, leading to lower assessment rates.
- Accurate documenting of employee injuries and illnesses allows businesses to contest claims that are not work-related, potentially reducing the businesses assessment burden.
- Submitting ROEs by the deadline (typically 31 March each year) avoids late penalties, ensuring a smooth claims process for employees. The Compensation Fund offers an online filing system (CF ROE) to streamline this process.
Alternatively, contacting YC Consulting is an option for small businesses or anyone experiencing problems with filing their ROEs.
How does YC Consulting Assist with ROEs?
YC Consulting is a long established a black female owned business specialising in Human Resources, Payroll, Recruitment, including accurate completion of ROEs for Compensation Fund.
YC Consulting assists businesses with the following;
- Early gathering of relevant information to complete its ROEs, allowing the business sufficient time to calculate provisional and actual earnings accurately.
- YC Consulting will assist businesses complete their online submissions, if necessary. The Labour Department’s online platform is straightforward however, for those new to completing and submitting their ROEs it may seem daunting. YC Consulting removes the hassle and facilitates the submission process.
- YC Consulting assists businesses with maintaining accurate salary records, simplifying the submission process, ensuring compliance.
Conclusion
Navigating the Compensation Fund requirements and ensuring timely and accurate ROE filing is crucial for business compliance.
YC Consulting assists employers to make the Compensation Fund work for them, taking them through the ROE process, assessment calculations, and cost-management strategies, thereby protecting their workforce.
