If you have more than one employee on your payroll, your company is liable to register for Workmen’s Compensation. Under the Compensation for Occupational Injuries and Diseases Act (COIDA), every business owner in South Africa needs to be compliant, but many SMB owners are in the dark when it comes to the ins and outs of registering and paying the annual workmen’s compensation fees.
Here’s a brief overview of the process involved, and the steps that you need to follow to ensure full compliance.
How do you register?
Companies with one or more employees need to be registered with the Workmen’s Compensation Fund. If you have several businesses, each one of them needs to register separately unless you specially arrange for a combined registration.
If you already outsource the nitty-gritty of your payroll to the experts at Bletchleys, workmen’s compensation submissions are part of the services offered. Alternatively, in order to remain compliant, the process of registration for all businesses is as follows:
- Complete the As.2 compensation fund form.
- Triple check that all relevant information is present on the form.
- Send the form to the Workman’s Compensation Fund by regular post, fax, or email.
It’s essential to include copies of your company registration certificate (obtained from the registrar of companies) and a copy of your ID when you submit Form As.2. Any missing documentation can delay processing times significantly.
Who and what does Workmen’s Compensation cover?
The Workmen’s compensation fund compensates workers who are injured while doing their work (occupational injury) or get sick from a disease contracted at work (occupational disease). If a worker dies due to injuries or disease sustained at work, their dependants will be entitled to claim compensation. The compensation is paid from the fund and not by the employer.
Despite its name, this type of benefit applies to male and female workers alike. Given the importance of registering for Workmen’s Compensation in compliance with the law, some owners and managers assume that all employees are automatically covered.
However, there are exceptions to the categories of employees who qualify for Worker’s Compensation. Some of them include:
- Workers who are partially disabled for less than 3 days
- Domestic workers (there is a separate fund for domestic workers)
- Military and police personnel
- A worker who is guilty of wilful misconduct (except if they become seriously disabled or pass away)
- Persons employed outside of South Africa for 12 or more continuous months and workers working mainly outside the country
How are Workers Compensation fees assessed?
Once your business is registered with the WCF, you’ll need to submit a return of earnings by the end of March each year. This is a statement of your workers’ earnings that is used to calculate your company’s contribution amount.
Starting in April, the fund sends out assessments to every business registered with it. Your company will need to pay its assessment based on your worker’s earnings and the risks associated with the type of work they do in order to remain compliant.
No time to register? Leave the paperwork to us
Keeping your workers safe, healthy, and productive is a priority for all businesses, regardless of their size, and workmen’s compensation plays an important role in doing so.
Managing the compensation fund can be a time-consuming and complex administrative task that can become a burden on any business. Bletchleys outsourced accounting solution and outsourced payroll service is the perfect choice for business owners who simply don’t have time to handle their own HR and payroll admin.
To ensure that your business is totally compliant in terms of workman’s compensation, contact us today to learn more about our solutions for SMB owners.