Return of Earnings Requirements

Quick Answer: Return of Earnings Requirements

Under Section 82 of the Compensation for Occupational Injuries and Diseases Act (COIDA), every registered employer in South Africa must complete an annual declaration known as the Return of Earnings (ROE). The Return of Earnings requirements mandate that employers declare the actual gross earnings paid to employees during the preceding assessment year (1 March to 28 February) along with an estimated payroll projection for the upcoming year.

The Compensation Fund uses this submission to calculate the employer’s annual COIDA assessment fee. Filing your ROE on time and paying the assessment invoice is the primary requirement for obtaining a valid Letter of Good Standing.

For broader guidance on regulatory compliance, visit our overall hub for Business Requirements South Africa or explore the COIDA And Good Standing Requirements South Africa parent guide.

Who This Requirement Applies To

The Return of Earnings requirement applies to all registered employers operating in South Africa who employ one or more workers. This obligation covers:

• Sole Proprietors and Partnerships: Any business owner employing permanent, temporary, or seasonal staff.
• Private and Public Companies (Pty Ltd / Ltd): Commercial enterprises regardless of turnover or industry classification.
• Non-Profit Organisations and Entities: NPOs, NGOs, and trust organisations that compensate staff.
• Household Employers: Private households employing domestic workers, gardeners, drivers, or home carers.
• Contractors and Subcontractors: Main contractors needing to verify their compliance before undertaking client projects or state tenders.

Certain entities—such as national and provincial government departments, or specific municipalities covered by mutual associations—operate under alternative statutory arrangements. However, all standard commercial employers must fulfill ROE submission requirements annually.

If your business is not yet registered with the Compensation Commissioner, you must first complete COIDA Registration Requirements before an annual ROE can be processed.

Eligibility Requirements

To successfully submit a Return of Earnings declaration, an employer must satisfy specific administrative and legal criteria. Return of Earnings Requirements eligibility includes the following key conditions:

Requirement Category	Specific Criteria
Active Registration	Must possess a valid 12-digit Compensation Fund (CF) registration number (typically starting with 99).
User Account Access	An active profile on the official Department of Employment and Labour portal (cfonline.labour.gov.za or CompEasy).
Reconciled Payroll	Verified payroll data covering the full COIDA assessment year (1 March to 28 February).
Employer Authority	The submitter must be a registered director, owner, or appointed administrator/practitioner linked to the company profile.

If you need to verify your initial filing status, review the necessary Documents Needed for COIDA Registration before attempting your annual return.

Documents You May Need

When preparing your submission, you must compile accurate financial and identity records. Having these Return of Earnings Requirements documents ready prevents delays and ensures your payroll calculations match official declarations:

• Annual Payroll Summary: Detailed monthly payroll registers or EMP501 tax reconciliations covering 1 March through 28 February.
• W.As.8 Return of Earnings Form: The official declaration document (used for manual submissions or reference during digital entry).
• CIPC Registration Certificate: Documents confirming company ownership and registered name (e.g., CoR 14.3 or CoR 15.1A).
• Certified ID Copy: Director or business owner identification.
• Proof of Banking Details: Stamped bank statement or official letter (required if updating business profile details or claiming credit refunds).

What Counts as Declarable Earnings?

When calculating total employee earnings for COIDA purposes, employers must include:

• Gross salaries, wages, and commission.
• regular bonuses (including 13th cheques and performance incentives).
• Regular taxable allowances (e.g., travel or housing allowances).
• Regular overtime payments.

Exclusions typically cover pure non-taxable expense reimbursements, ex-gratia payments, and irregular or intermittent overtime, subject to updated Department guidelines.

Steps to Apply or Prepare

Following systematic Return of Earnings Requirements application steps ensures a smooth submission process:

1. Reconcile Payroll Records: Calculate the exact total earnings paid to all active, temporary, and casual employees between 1 March of the prior year and 28 February of the current year.
2. Estimate Upcoming Payroll: Estimate total payroll expenditure for the upcoming year (1 March to 28 February) to declare your provisional earnings.
3. Log In to the Department Portal: Access the official online portal via cfonline.labour.gov.za or CompEasy using your registered credentials.
4. Capture the W.As.8 Declaration: Navigate to the ROE section, verify your business details, and input both actual and provisional earnings figures.
5. Review and Submit: Check captured totals for accuracy before confirming submission. Save or print the generated submission receipt.
6. Receive Notice of Assessment: Download the official Notice of Assessment (W.As.26 invoice) generated by the system.
7. Settle Assessment Fee: Pay the invoice within 30 calendar days to maintain compliance.

Costs, Processing Times and Validity

Understanding the financial and time commitments involved helps businesses manage compliance effectively:

• Submission Fee: Submitting an ROE declaration on the official portal is free.
• Assessment Fee: This fee is calculated by the Compensation Fund based on your declared total payroll multiplied by the risk category rate assigned to your specific industry.
• Processing Time: Online portal submissions generate immediate receipt confirmations and automated Notices of Assessment. Manual or flagged queries may require 5 to 15 business days for administrative review.
• Validity Period: The Return of Earnings submission covers one COID financial year (1 March to 28 February). Letters of Good Standing issued following payment remain valid until 30 April of the following year.

Once your payment has been processed and reconciled by the Compensation Fund, you can proceed directly to obtain your Letter of Good Standing Requirements documentation.

Common Mistakes and Delays

Admin teams and business owners frequently encounter unnecessary delays due to predictable errors. Avoid the following pitfalls:

• Underestimating Payroll: Deliberately under-declaring provisional earnings can lead to heavy audit penalties and revised back-dated assessment invoices.
• Missing Annual Deadlines: Failing to submit within the official window (typically opening 1 April and closing 31 May or per gazetted extensions) incurs administrative penalties and interest.
• Confusing COIDA with SARS or UIF: COIDA is an independent annual employer assessment administered via the Compensation Fund, not a monthly payroll deduction like PAYE or UIF.
• Omitting Casual or Household Staff: All casual, temporary, and domestic workers must be included in the total earnings calculation.
• Unresolved Profile Blockages: Attempting to submit when company details, CIPC statuses, or director profiles are outdated in the CompEasy system.

Where to Confirm Official Requirements

Always verify current statutory requirements, submission dates, and industry assessment rates directly through official channels:

• Department of Employment and Labour: Visit the primary website at labour.gov.za.
• Compensation Fund ROE Online Portal: Access online services at cfonline.labour.gov.za or compeasy.labour.gov.za.
• Labour Centres: Consult in person at any regional Department of Employment and Labour office across South Africa.

Disclaimer: Requirements.co.za provides independent compliance information and guidance. We are not affiliated with the Department of Employment and Labour or the Compensation Fund. Requirements, submission windows, and fees are subject to gazetted updates.

Frequently Asked Questions

What are the requirements for Return of Earnings Requirements?

The main requirements include having an active Compensation Fund registration number, registered portal access, reconciled payroll records for the previous year (1 March to 28 February), and estimated payroll figures for the coming year. See the Eligibility Requirements section above for details.

What documents are needed for Return of Earnings Requirements?

You need annual payroll summaries or EMP501 tax reconciliations, CIPC registration documents, certified owner/director ID copies, and proof of banking details. Refer to our Documents You May Need checklist for a complete breakdown.

How long does it take for Return of Earnings Requirements?

Online submissions via the CompEasy/ROE portal are usually processed immediately, generating an automated Notice of Assessment. Manual submissions or account queries can take 5 to 15 business days.

Where can I confirm the latest official requirements for Return of Earnings Requirements?

Official requirements can be verified on the Department of Employment and Labour website (labour.gov.za) or via the ROE Online portal (cfonline.labour.gov.za). Review our Where to Confirm Official Requirements section for portal links.

Which documents should I prepare for Return of Earnings Requirements?

Prepare certified ID copies of directors, company CIPC certificates, annual gross earnings breakdowns (including bonuses and regular allowances), and proof of company bank details. Check the Documents You May Need table for full guidance.