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Why should a company submit an OID Report (Return of Earnings) annually?

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Summary

This article will provide guidance on why should a company submit an OID Report (Return of Earnings) annually on Sage 200c VIP, Sage Classic, Sage Premier, Sage Business Cloud Payroll Professional and Sage 300 People.

Resolution

The Compensation for Occupational Injuries and Diseases Act (COIDA) provides for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, or for death resulting from such injuries or diseases.

For the Department of Employment and Labour to provide for this compensation, every employer (excluding exempt employers) must submit a return of earnings report (W.As.8) once a year before 31 March to the Commissioner, showing:

  • the amount of earnings (up to the limit) paid to the employees during 1 March the previous year to the 28/29 February of the current year, and
  • such further information as may be prescribed or as the Director-General may require.

1. Extracts from the Compensation for Occupational Injuries and Diseases Act and the latest published W.As.8 form

1.1  Definition of employee

"Employee" means a person who has entered into, or works under a contract of service or apprenticeship or learnership with an employer, whether the contract is expressed or implied, oral or in writing, and whether remuneration is calculated by time or work done, or is in cash or in kind and includes -

(a)   a casual employee employed for the purpose of the employer's business;

(b)   a director or member of a body corporate who has entered into a contract of service or of apprenticeship or learnership with the body corporate, in so far as he acts within the scope of his employment in terms of such contract;

(c)    a person provided by a labour broker against payment to a client for the rendering of a service or the performance of work, and for which service or work such person is paid by the labour broker;

(d)   in the case of a deceased employee, his dependants, and in the case of an employee who is a person under disability, a curator acting on behalf of that employee; but does not include-

(i)   a person, including a person in the employ of the State, performing military service or undergoing training referred to in the Defence Act, 1957 (Act No. 44 of 1957), and who is not a member of the Permanent Force of the South African Defence Force;

(ii)  a member of the Permanent Force of the South African Defence Force while on "service in defence of the Republic" as defined in section 1 of the Defence Act, 1957;

(iii)  a member of the South African Police Force while employed in terms of section 7 of the Police Act, 1958 (Act No. 7 of 1958), on "service in defence of the Republic" as defined in section 1 of the Defence Act, 1957;

(iv)  a person who contracts for the carrying out of work and himself engages other persons to perform such work;

(v)  a domestic employee employed as such in a private household; (xliv)

 

1.2  Definition of employer

"Employer" means any person, including the State, who employs an employee, and Includes -

(a)   any person controlling the business of an employer;

(b)   if the services of an employee are lent or let or temporarily made available to some other person by his employer, such employer for such period as the employee works for that other person;

(c)    a labour broker who against payment provides a person to a client for the rendering of a service or the performance of work, and for which service or work such person is paid by the labour broker; (xliv)

 

1.3  Exempt employers according to section 84:

No assessment in favour of the compensation fund shall be payable in respect of employees -

  • in the employ of
  • the nationally and provincial spheres of government, including Parliament and provincial legislatures;
  • local authority which has obtained a certificate of exemption of the Workmen’s Compensation Act and has notified the Director-General in writing within 30 days after the commencement of this Act that it desires to continue with the arrangement according to the said certificate of exemption, and
  • a municipality contemplated in section 108 of the Local Government Act to which exemption has been granted.
  • whose employer has the approval of the Director-General obtained from a mutual association a policy of insurance for the full extent of this potential liability in terms of this Act to all employees employed by him for as long as he maintains such policy in force.

You can also click here and download the latest published W.As.8 that explains what is defined as an employee and discussed which earnings are included and excluded.

 

For more information or assistance in registering, submitting the return online or any claims, click here.

To access the online system where the return must be submitted, click here.