ABOUT COIDA
COIDA stands for Compensation for Occupational Injuries and Diseases Act (Act No. 130 of 1993). It is also sometimes referred to as OID as well as WCA. Those of us that have been doing payrolls for many years now will remember the old WCA (i.e. Workmans Compensation Act) report that had to be produced once a year. Well, COIDA is the new, upgraded and modern version of this WCA report which was introduced s few years ago.
Aim of the Act…
This fund (The Compensation Fund) provides for compensation for disablement caused by injuries and diseases sustained or contracted by employees during their employment period as a direct result of their occupation. It also compensates for death as a result of injuries and diseases in the same manner. Employers pay an amount every year (compulsory) to the fund from where these benefits are paid.
In essence it is compulsory insurance cover for employers should any of their employees die, sustain an injury or contract an occupational disease during the course of their employment.
The Compensation Fund…
The fund is controlled by the Compensation Commissioner and administration of reporting, penalties, collections etc. is handled by the Department of Labour.
Compensation can be paid out in a number of ways :
- as medical expenses
- as wages (whilst the employee is unable to work)
- as a disability payment (be it a partial or total disability!)
- as a death benefit to the employee’s next of kin.
Naturally there is a process that the employee and the employer must go through in order for compensation to be paid out :
Employee :
Inform the Employer in writing with proof of injury or disability or disease.
Note : Payouts can be withheld in the event of wilful misconduct, concealing previous injuries, or refusing to undergo treatment for the injury. Compensation cannot be ceded or pledged. Compensation due to an employee (as a result of death) cannot form part of the employee’s estate.
Employees covered by the act include :
- Casual employees
- Dependents of a deceased employee
- A director or member of a corporate body (as long as such person has entered into a contract of service or apprenticeship with the body corporate).
Employer :
Notify the Commissioner of the accident,
Maintain a first aid facility / service,
Provide transport for any injured employee,
Keep accurate records of all accidents,
Contribute to the Compensation Fund (in respect of each employee in the company that falls within the COID definitions of “EMPLOYEE”.)
Your obligations to COID…
- Register with the Compensation Commissioner (P. O. Box 995, Pretoria, 0001).
- Send an estimation of your remuneration bill for the period March to February to the Commissioner. The estimation must be based on each employees remuneration for the year subject to the COIDA Anual Ceiling Limit. This simply means that for any employee earning more than this amount, only put a value up to the limit into your estimate.
- You have to submit a form W.As 8 (Return of Earnings) form in March each year. The form requests the average number of employees for the year, their total remuneration bill and various other items.
- On receipt of your form W.As 8 the Commissioner will assess you taking into account the industry you operate in as well as your remuneration bill for the year and calculate what you are liable for.
- The amount due by you is normally a very low percentage of your total remuneration bill (subject to a maximum of the stipulated limit for employees who earn more than this).
What is a remuneration in terms of COID?
When calculating the remuneration value for COID reporting you need to note the following :
Remuneration is deemed as earnings of all types (before deductions) due to an employee, either made or owing, in money terms or in kind that has arisen out of his/her employment. It includes :
- Salaries and/or Wages
- Cost of Living Allowance
- Bonuses (incentive or otherwise)
- Overtime payments (regular)
- A guaranteed 13th cheque
- Housing Allowance
- Commissions (only if given to an employee who also has a basic salary, and not agents or contractors)
- Cash value of meals and accommodation provided to an employee
- Any other payment due to an employee in accordance with the employee’s contract of service
Don’t include the following :
- Subsistence Allowance (reimbursive in nature)
- Travelling Allowance (reimbursive in nature)
- Occasional Overtime
- Ex Gratia Payments
- Occasional Payments
- Company Contributions to Medical Aid, Pension or Provident funds
- Once-off (non-recurring) payments made to an employee which falls outside the scope of his service contract or for tasks which fall outside the scope of the employees normal duties.
Employees to be included in the COID estimate…
- A person under contract of service with the company or an apprenticeship or learnership scheme or who is paid in accordance to the time worked or is paid in cash or in kind for services rendered.
- Casual employees.
- Director or member of a corporate body (who has entered into a service contract).
- A person provided by a labour broker for which the labour broker is remunerated.
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