Annual returns - Workers compensation due 31 May 2023

Are you an employer?

In South Africa, employers are required to submit annual returns to the Compensation Fund, which is responsible for providing employees with compensation in case of work-related injuries or diseases. The returns provide essential information, such as the nature of the business and the salaries and wages paid to employees that allows the Compensation Fund to determine the employer's annual premiums. Failure to comply with these regulations can result in hefty fines, penalties, and even legal action.

Preparing and submitting these returns can be a daunting task, especially for small and medium-sized businesses. The process can be time-consuming and complex, and mistakes can have severe consequences. That's why it's crucial to use a professional service provider like BVK to assist with the preparation and submission of these returns on your behalf.

Submitting the annual returns electronically at the department of labour has made the process more accessible, but there are still pitfalls to navigate. For instance, a mistake during the capturing process can take years to fix, an incorrect classification code and an over-reporting of earnings can lead to significant financial losses. BVK has the experience and expertise to help businesses avoid these mistakes and ensure that their returns are accurate and compliant.

Besides avoiding costly mistakes, we can also help businesses obtain a letter of Good Standing from the Compensation Fund. This letter is essential as it proves that the company has complied with all regulations and has no outstanding debts to the Compensation Fund. A letter of Good Standing is often required when applying for tenders, contracts, and licenses, and not having one can prevent businesses from operating or winning contracts.

In conclusion, submitting annual returns to the Compensation Fund is not only a legal requirement but also crucial for ensuring that employees are adequately compensated in case of work-related injuries or diseases. As such, businesses must comply with these regulations and obtain a letter of Good Standing to avoid any legal or financial repercussions. Using a professional service provider like BVK can make the process more accessible and less risky, ensuring that businesses can focus on their core activities while leaving the compliance and administrative tasks to the experts.