Workmens Compensation Questions

[Imp]

Hi there

I have a couple of questions on workmens comp.

Does every company and cc have to apply for this? What about the scenario where you have a company that has 1 Director and only uses consultants for its clients, and threfore has no employees? do they still need to do it?

How do they calculate the amount to be paid? is it based on the number of people or they amount they are paid?

Thank you

[georgevorster]

All employers have to register as soon as they have employees. If the business has no employees, then it is not necessary to register.

[Calcha-Charmaine]

Hi,

It is a legal requirement for any business or undertaking in which there is 1 or more employee. There are cases where as you mention above that it is not necessary to register your business, but as many companies are becoming familiar with the Health and Safety Act and the legal requirements thereof, it is becoming more and more necessary to produce some form of registration to prove that you and your company are compliant with the laws.

You are able to register, and obtain a registration number for your business and all you will have to pay is a minimum rate calculated by the offices of the Compensation Commissioner. There are very few people who are able to explain the manner of calculation to an employer, the annual Notice of Assessment is calculated on the earnings of the employees within an organization.

Should you wish to obtain further information regarding your business and it's registration with the Compensation Commissioner, you are welcome to e mail our offices on info@calcha.za.org, Calcha & Associates is a COID Act consultancy focusing on taking the strain of everyday employers to make the COID Act process easier.

Hope this helps,

Regards,

Charmaine Vorster

[Dave A]

How do they calculate the amount to be paid? is it based on the number of people or they amount they are paid?

It is a percentage of your payroll. That percentage varies according to the industry you're in.

The percentage is arrived at by looking at the historical claims experience for your industry and determining the appropriate % to cover expected claims going forward. As you might expect, with some activities more likely to result in injuries than others, some industries have a higher claim experience than others. So it's a pretty fair system all told.

[miriam790]

I'm sending in the W.As.8 Form every year. Is there anything else to do? Do you have to register every individuell person or is it enough to report them that you have for example 15 employees? Thanks Miriam

[Mike C]

Hi Miriam. Every month you need to fill in a form UI-19 for all employees as well as an EMP201 and make payment to SARS within seven days after the end of the month.

This can also be done electronically.

In terms of Section 8 of the UIC Act, UIF contributions deducted must be paid over to SARS within seven (7) days after the end of the month in respect of which the contributions are payable.

In terms of Section 8(2) of the UIC Act, the employer must submit a statement in such form as the Commissioner may prescribe when making any payment. The prescribed statement (EMP201) is automatically supplied to registered employers for payment purposes each month.

[dfsa]

Hi there

I have a couple of questions on workmens comp.

Does every company and cc have to apply for this? What about the scenario where you have a company that has 1 Director and only uses consultants for its clients, and threfore has no employees? do they still need to do it?

How do they calculate the amount to be paid? is it based on the number of people or they amount they are paid?

Thank you

Hi Imp

I think people are confusing you here: The EMP201 & UI-19 are UIF and Pay as you earn forms. Yes you do need to fill them too if you employ 1 or more people. The workmen's comp "WCA" was actually replaced in 1993 with the "COIDA" act (Compensation for Occupational Injuries and Diseases Act ) There is not much difference and most of us still refer to it as Workman's comp. That is what it actually is about.

If you as director and owner of the company is the only person in the company you do not need to register as long as you take care of your own insurance. I would however suggest you do register. Reason is that you can get injured on the job, then you can claim from the Fund. ( I hurt my back on a site and needed an operation. Total cost +/- R200 000 The fund paid for it all. That meant I did not have to exhaust my medical aid.)

You can contact the fund and ask for exemption if you can proof that you take care of yourself, but once you employ 1 or more people you need to fill your form the next March.

If you register, then you only fill the W.As.8 form once every Year in the Month of March ( Must be in before the 30th) The fund then do an assessment on your report. ( Please ensure you fill it with honesty and all employee earnings for the year) The fund then get back to you with a figure that you need to pay. You then need to Pay that within 30 Days.

How do they assess what % you need to Pay: They look at the type of industry you are in and if you had any claims within a 3 Year period. It works like insurance. If you claim on a regular basis they look at you as high risk, and charge a higher %. They also might send the Health and Safety department to come and assess your business to ensure you follow the OHS Act.

Not sure what business you are in, but you must be careful in using consultants and sub contractors. Indirectly you actually employ them. You need to ensure that they are registered and that they have their OHS & WCA in place. It is actually very simple: You just ask them to produce their "Letter Of Good Standing" and then ask them to produce their accredited OHS file. Before you actually will furnish them with a order No: to do the job. This will keep you and your company clear from any Liability. ( Don't be afraid, be strict on this.) You can also force them to have public liability insurance depending on what type of work they do for you. { This will keep you out of the PoooPooo}

The above actually apply to anybody that are going to pay for any work done for them. Even if the plumber just come and unblock your drain AT HOME. ( The worker fall of the ladder or slip on your porch. Well he can hold you liable.) The owner of the business must ensure he is up to Date with the ACT. If nobody ask him for his Letter Of Good Standing, then he is not going to conform to it.

You can outsource this as there are plenty entity's that do these things and get company's up to scatch, but I would not advice that. They are expensive and will tell you do do much more than what you actually need. Yes, Yes at an extreme Premium.

In actual fact, your Accountant should be 100% up to Date with the requirements. Just contact Him/Her


If not your accountant then just contact the deparment and they will tell you what you need if you need any. Below is their contact details:

Operating Hours:	07:30 to 16:00, Monday to Friday.
Telephone Number(s):	0860 105 350
Fax Number(s):	012 326 1570 / 012 357 1772
Street Address:	Compensation House Cnr Hamilton & Soutpans streets Pretoria
Postal Address:	P.O Box 955 Pretoria 0001
Email Address:	cfcallcentre@labour.gov.za cfenquiries@labour.gov.za

[miriam790]

Hi Miriam. Every month you need to fill in a form UI-19 for all employees as well as an EMP201 and make payment to SARS within seven days after the end of the month.

This can also be done electronically.

Thank you for your answer. I fill out the UI-19 form but only when we have new employees or someone left the company. You said we have to do it on a monthly basis? Of course I make the EMP201. I thought that the UI-19 is only for the unemployment, I didn't know that this is also for the workmens compensation. I took over the accounts in the company and sent an updated UI-19 form, because I didn't know the status. I never received an letter for people that left the company. I don't know who to ask about the status of the UI-19 form. I sent them an email and asked who is still registered with the company and who not. I never received an answer from them.

[Dave A]

I thought that the UI-19 is only for the unemployment, I didn't know that this is also for the workmens compensation.

I think Mike C had a momentary lapse there or misread the conversation. The UI-19 isn't for workmens compensation (although it's only a matter of time before DoL compares the results from the two, if they don't already).

The requirements for UIF returns changed quite a few years ago and returns now need to be made monthly, not just when there is a change as in days gone by. The easiest way to do this is to use uFiling.

[Mike C]

I think Mike C had a momentary lapse there or misread the conversation.

Hi Miriam - My apologies if I misread the question. You are quite right in saying that the UI-19 is only for unemployment, and has nothing to do with workmen's compensation.

Hopefully it has proved helpful anyway in highlighting the need for monthly UIF returns. If you use a payroll package like Pastel you can make your declaration electronically, and submit it via email.

If you don't have that facility, then I would agree with Dave that the easiest way to do your monthly UIF returns is through uFiling.

[miriam790]

Hi Miriam - My apologies if I misread the question. You are quite right in saying that the UI-19 is only for unemployment, and has nothing to do with workmen's compensation.

Hopefully it has proved helpful anyway in highlighting the need for monthly UIF returns. If you use a payroll package like Pastel you can make your declaration electronically, and submit it via email.

If you don't have that facility, then I would agree with Dave that the easiest way to do your monthly UIF returns is through uFiling.

Hello again

I registered our company on ufiling and I also sent out the return from VIP to declarations@uif.gov.co.za. One question I loaded all our employees on ufiling and now the return that is created is the UI 7. They also want me to pay something but I already paid it via SARS efiling. Must I submit the report? Also when I send out my Declatation to that email address I always get an error message (the email Subject is Declarations).

Your message did not reach some or all of the intended recipients.

Subject: Declarations
Sent: 01/08/2012 11:10 AM

The following recipient(s) could not be reached:

declarations@uif.gov.co.za on 03/08/2012 11:22 AM

[Dave A]

They also want me to pay something but I already paid it via SARS efiling. Must I submit the report?

It seems it takes a while for news of the payment to SARS to reach the UIF department, but it does get there eventually. So no, nothing further needs to be done from your side for this.

[Mike C]

Hi Miriam,

Try this address rather: declarations@uif.gov.za

It is the one that I use when sending in my declarations.

[Dave A]

Wrong email address

What fascinates me is someone has actually registered the gov.co.za domain - sneaky!