For many South African business owners, the term Return of Earnings (ROE) can be confusing—especially if you’re dealing with it for the first time. At TechAcc, we help companies across South Africa understand and comply with the Compensation for Occupational Injuries and Diseases Act (COIDA). One of the most important annual requirements under COIDA is the submission of the ROE, also known as the W.As.8 form.

In simple terms, the ROE is a mandatory annual declaration submitted by employers to the Compensation Fund. Its purpose is to report the total amount of earnings paid to employees during a financial year. The Compensation Fund uses this information to calculate the assessment fee your business must pay to maintain coverage for workplace injuries and occupational diseases.

Understanding the ROE is essential for compliance, budgeting, and ultimately protecting your employees and your business. Below is a comprehensive explanation of what the ROE is, why it matters, and how it affects South African employers.

What Exactly Is the Return of Earnings (ROE)?

The Return of Earnings is an annual report submitted by all employers who are registered with the Compensation Fund under COIDA. The primary function of the ROE is to declare your total employee earnings from the previous assessment year. These earnings are used to calculate the amount your company must contribute to the Compensation Fund.

The ROE process ensures that your business remains covered in case of:

• –  Workplace injuries
• –  Occupational diseases
• –  Permanent or temporary disability
• –  Death resulting from a workplace incident

Without submitting your ROE, your business cannot obtain a Letter of Good Standing, which is required for many tenders, contracts, and compliance audits.

Why Is the ROE Important?

Submitting the Return of Earnings is not just a compliance requirement—it is part of your legal responsibility as an employer. Failing to submit your ROE can have serious consequences. The ROE impacts several important areas:

1. It Determines Your Annual Assessment Fee

The Compensation Fund uses the declared earnings in your ROE to calculate your assessment tariff. This tariff is based on:

• –  Your total payroll
• –  Your industry risk classification
• –  The Compensation Fund’s statutory rate assigned to your sector

High-risk industries such as construction or manufacturing are assigned higher rates, while lower-risk industries like consulting or IT pay lower rates.

2. It Ensures Your Employees Are Covered

Your assessment payments fund compensation benefits for workers injured on duty. Submitting the ROE ensures your business stays compliant, which means employees remain eligible for:

• –  Medical treatment
• –  Temporary disability benefits
• –  Permanent disability payouts
• –  Death benefits for dependents

3. It Is Required for a Letter of Good Standing

A Letter of Good Standing (LOGS) confirms that your company is fully compliant with COIDA. Without submitting your ROE and paying the resulting assessment, the Compensation Fund will not issue your LOGS. This often prevents businesses from:

• –  Tendering for government contracts
• –  Working with large corporate clients
• –  Passing compliance audits

Who Must Submit the ROE?

Every registered employer—whether a small startup or a large corporation—must submit a Return of Earnings annually. This includes:

• –  Private companies
• –  Sole proprietors
• –  Partnerships
• –  Trusts
• –  NPOs
• –  Domestic employers (after legislative changes)

If your business has one or more employees, you are legally required to submit your ROE.

What Earnings Must Be Declared?

The Compensation Fund requires employers to declare the total earnings of all employees, including:

• –  Salaries
• –  Wages
• –  Overtime
• –  Bonuses
• –  Commission
• –  Allowances
• –  Cash benefits
• –  Certain non-cash benefits

Directors of private companies and members of close corporations must also be included. There is an annual earnings limit, but any amount up to that limit must be reported.

When Must the ROE Be Submitted?

The ROE submission window typically opens on 1 April each year and runs until 31 May, though extensions are often announced. Submitting the ROE on time is essential to avoid late penalties and delays in obtaining your Letter of Good Standing.

How the ROE Assessment Is Calculated

Once you submit your ROE, the Compensation Fund uses the following formula to calculate your annual assessment fee:

Total employee earnings x Assessment tariff (%) = Amount payable

The assessment tariff is determined by your industry classification, which is assigned by the Compensation Fund based on the nature of your business activities.

For example:

• –  A consulting firm may have a rate of around 0.30%
• –  A manufacturing business may have a rate closer to 2–3%
• –  A construction company may exceed 5%

What Happens If You Don’t Submit the ROE?

Failing to submit your Return of Earnings can lead to several problems:

✔ Penalties and Interest

The Compensation Fund can apply penalties for late submissions and interest on overdue assessments.

✔ No Letter of Good Standing

Your business will not be considered compliant until the ROE is submitted and the assessment is paid.

✔ Legal and Financial Risk

If an employee is injured on duty while your company is non-compliant, you may face:

• –  Delayed claim processing
• –  Out-of-pocket medical costs
• –  Possible legal action

How TechAcc Can Help With Your ROE Submission

Submitting a Return of Earnings can be confusing, especially if:

• –  You’re unsure which earnings to declare
• –  Your industry classification is incorrect
• –  You’ve missed previous ROE deadlines
• –  You’re struggling to obtain a Letter of Good Standing

At TechAcc, we assist South African businesses with:

• –  COIDA registration
• –  ROE calculations and submission
• –  Assessment dispute resolution
• –  Industry code verification
• –  Obtaining Letters of Good Standing
• –  Bringing non-compliant companies back into good standing

We handle the full process accurately and efficiently, ensuring your business stays compliant and protected at all times.

Conclusion: The ROE Is Essential for Every Employer in South Africa

The Return of Earnings (ROE) is much more than a simple annual form. It is a legal requirement that directly affects your company’s compliance status, your assessment fees, and your ability to protect employees in the event of workplace injuries. Submitting your ROE on time ensures your business remains covered under COIDA, avoids penalties, and maintains a valid Letter of Good Standing.

If you want help submitting your ROE or managing your COIDA compliance, TechAcc is here to simplify the entire process.