Summary
Description
OID Report Changes from Release 6.2a
The amended Compensation for Occupational Injuries and Diseases Act (COIDA) of 2022, was promulgated on 17 April 2023. The Department of Employment and Labour have published the
“ROE explanatory memorandum” for which they provided guidance on how to report earnings calculated to complete the ROE form. These amendments directly affect the payroll.
Maximum Earnings
The return of earnings (ROE) explanatory note for the 2022 reporting season (Government Gazette No. 48337) has provided guidance on how the annual maximum earnings should be applied:
- The limit is an annual limit and should not be pro-rated as a monthly figure.
- The annual limit must be applied to earnings irrespective of whether the employee worked for less than 12 months.
This means the maximum earnings should be the lessor of actual earnings and the annual limit.
The Fund did not clarify how the monthly earnings must be reported for the purpose of the manual
ROE submission, but we applied the following calculation method:
- If the employee’s/director’s earnings are greater than the maximum annual limit, the monthly earnings should be the maximum annual limit divided by period of service.
- If the employee’s/director’s earnings are less or equal to maximum annual limit, the monthly earnings should be the actual monthly earnings.
Resolution
Examples for Reporting of Employees:
Example 1:
An employee received earnings of R100 000 per month. Their earnings for the 2023 ROE season (OID limit of R568 959) will be reported as follows:
*OE per month = R568 959/12
Example 2:
An employee received earnings of R100 000 per month. Employee went on unpaid maternity leave from 31 August. Their earnings for the 2023 ROE season (OID limit of R568 959) will be reported as follows:
*OE per month = R568 959/12
Example 3:
An employee received earnings of R200 000 per month. Employee was terminated on 31 May 2023. Their earnings for the 2023 ROE season (OID limit of R568 959) will be reported as follows:
*OE per month = R568 959/3
Depending on the count option selected by the employer, the employee will be counted as either 0.25 or 1 when calculating the employee count.
Example 4:
An employee received earnings of R100 000 per month. Employee was terminated on 31 June 2023. Their earnings for the 2023 ROE season (OID limit of R568 959) will be reported as follows:
*OE per month = R100 000
Depending on the count option selected by the employer, the employee will be counted as either 0.333 or 1 when calculating the employee count.
Example 5:
An Employee was employed from 1 March to 31 June 2023 (termination date). They had earnings of R100 000 for March & May and R75 000 for April & June. Their earnings for the 2023 ROE season (OID limit of R568 959) will be reported as follows:
*OE per month = AE per month
Depending on the count option selected by the employer, the employee will be counted as either 0.333 or 1 when calculating the employee count.
Examples for Reporting of Directors:
Example 1:
An employee received earnings of R100 000 per month. They were promoted to a Director on the 1st of September. The employees’ earnings as a Director were R150 000 per month. Their earnings for the 2023 ROE season (OID limit of R568 959) will be reported as follows:
*OE per month = R568 959/12
The employee will be counted as a Director for the entire year.
Example 2:
A Director received earnings of R100 000 per month. The Director was terminated on 31 June 2023.
Their earnings for the 2023 ROE season (OID limit of R568 959) will be reported as follows:
*OE per month = R100 000
Depending on the count option selected by the employer, the Director will be counted as either 0.333 or 1 when calculating the employee count.
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