COIDA – WHAT IS IT?
Compensation for Occupational Injuries and Diseases Act
Of all the mandatory registrations that businesses face we have found that COIDA is the one that the majority are either unaware of or are uncertain that it applies to them.
The Compensation for Occupational Injuries and Diseases Act (COIDA) 130 of 1993 clearly sets out the legal requirements for tariffs, compensation and the limitations for claims for workers who are injured, or who contract illnesses and diseases while they’re at work.
Why must your company register with COID?
It’s a legal requirement that all companies who employ people are registered with COID. Even if you only have one employee, you must register with COID (Section 80.1).
Yes, that means that the law says that you MUST register.
NB: if your company has more than one business, each business’ earnings must be registered separately (Section 80.2). For example, you have a restaurant franchise and a central kitchen, you would need to register these companies separately.
You may however register your companies under a single registration, however you must apply to the Compensation Commissioner in writing, who will give you written permission to do this, if he deems that it complies with the COID Act requirements.
If after registering, your information changes, you have 7 days in which to change your information and notify the Compensation Commissioner of the changes (Section 80.3). For example, you have registered and you have stated that you employ 7 people whose combined salaries/wages is R15 000.00, and after registering, you employ 3 extra people, you now have 7 days to change the number of employees and the salary/wage quota or you will be fined.
If you don’t comply with COIDA, you will be guilty of a criminal offence (Section 80.6).
As all companies are required to submit tax returns for their employees, the commissioner receives this information from SARS (South African Revenue Services) and compares it to the information on your registration form. Where there are discrepancies, the commissioner investigates and uses the outcomes of the investigation to compare your actual employee list and salaries/wages with your registration information.
At SME.TAX we do more than just assist clients with COIDA registrations, we are your “one stop SME shop”, assisting with everything from Accounting, Business Management, BEE, Consulting, Company Registration to Payroll and Mentoring.
At SME.TAX we do more than just assist clients with their provisional taxes.
We are your “one stop SME shop”, assisting with everything from Accounting, Business Management, BEE, Consulting, Company Registration to Payroll and Mentoring.
For more information, please visit our website www.sme.tax or give us a call on 072 207 4789