When legal entities employ their first employee, they are required in terms of the Compensation Diseases and Injuries Act (COIDA) to register as employers with the Compensation Fund. Once registered with the Fund, all employers must submit an annual Return of Earnings (ROE) form by the due date (usually extended to the 31st May each year). This return confirms the number of employees and the COID earnings for the particular year, as well as the estimated total earnings for the coming year of assessment.
If the employer ceases to operate a business or no longer has any employees, the entity must deregister as an employer with the Compensation Fund as soon as possible. Failure to notify the Fund may result in an estimated assessment and penalties and interest being raised. Anyone working in the COID space will know how difficult it is to overturn such assessments. The cost of the wasted man hours, the expert assistance you will need and the frustration that comes with the process will make any oversight here very expensive.
The deregistration process is unfortunately not an online process so must be done manually. The Payroll Authors Group of South Africa has raised this as a potential challenge as these manual applications have a habit of getting lost in the ‘system’. Unfortunately for now though, employers wanting to deregister will need to complete the CF-1C form.
Should you need assistance with this or any other COID process, please contact our admin team on [email protected] .