Compensation Fund – Feedback on the discount process

As promised, I am publishing the feedback from the Compensation Fund regarding the issues that were raised with them. They have provided the following feedback regarding queries about the early payment discounts:

“Please be informed that employers qualify for discounts only, and only after they have settled their accounts in full. So, employers cannot pay a discounted amount as this will leave their accounts with an outstanding balance. The date of payment determines the discount percentage that will be applied to the employers’ accounts.

The 2012 ROE is for the assessment period: 1 March 2012 to 28 February 2013.
The conditions to qualify for the discounts are as follows:
1. All returns of earnings (ROEs) must be submitted online by 30 April 2013 via the ROE Website.
2. Penalties for late submission of 10% will be levied on all ROEs submitted after 30 April 2013.
3. Employers who submit their returns after 30 April 2013 will not qualify for discounts.
4. All outstanding payments, including the latest (2012 ROE) must be settled in full within 30 days of invoice date in order to qualify for a 10% discount on the 2012 ROE only.
5. All outstanding payments, including the latest (2012 ROE) settled in full within 60 days of invoice date will qualify employers for a 5% discount on the 2012 ROE only.
6. All outstanding payments, including the latest (2012 ROE) settled in full within 90 days of invoice date will qualify employers for a 2% discount on the 2012 ROE only.
7. For example, an employer that files annual returns on or before 30 April 2013 has 90 days in which to settle account in full and qualify for the discounts as stated above. The employer that settles account in full after 31 July 2013 (outside 90 days), will be charged interest and penalty for late payment from 1 August 2013.
Important Note for Un-registered EMPLOYERS
8. Employers who have not previously registered with the Compensation Fund are given amnesty to do so and submit annual returns as per the COID Act. These employers must also submit online by 30 April 2013 and pay assessments before 30 June 2013 in order to qualify for incentives on the 2012 ROE only. The incentive is applicable to the 2012 ROE only, for the assessment period 1 March 2012 to 28 February 2013. The normal practice is that new employer registrations (employers that have been trading and paying salaries and wages but had not registered with the Compensation Fund) are required to provide return of earnings for the last four (4) years, however, if there was a claim before the four years then they are required to submit all the returns from the date of the claim. In the spirit of fairness these employers cannot enjoy the same benefits provided to the registered employers that have been complying with the provisions of the COID Act. Interests and penalties will not be levied until 30 June 2013. Interest and penalties will be levied from 1 July 2013.
LETTER OF GOOD STANDING
The letter of good standing will be issued for a period of one year, expiring 30 April 2014, to all employers that meet the above requirements. Employers who enter into an instalment arrangement will be issued with a letter of good standing on a month-to-month basis until their accounts are fully settled. Employers placed on instalment plan will qualify for the discount only when their accounts have been settled in full by 31 July 2013. Employers are encouraged to refrain from requesting to be issued with the interim letters of good standing when they have not paid their accounts and must refuse to be issued with one on a periodic basis (i.e. 3 months, 2 months, etc.) unless they have been placed on an official instalment plan. Only under special circumstances caused by the fault on the part of Compensation Fund will these letters be issued by the officials appointed by the Director of Income.

Please take note of the following email addresses:
Letters of good standing enquiries/ applications – #cflogrequest@labour.gov.za
ROE website enquires – roe@labour.gov.za”

19 Comments

Filed under General, HR, Industry Information, Legislative Updates

19 responses to “Compensation Fund – Feedback on the discount process

  1. Peter Walker

    Sounds more like discount disaster. Having set the early payment structure surely the CC can hire people clever enough to write programs able to detect that an employer has paid its assessment less the applicable discount within a specified time limit – end of story!

  2. I have been trying to get hold of the compensation commissioner but the phone line doesnt even ring, i have emailed the Compensation fund, i have also contacted my 2 closest labour centre and they couldnt help me, is there someone i can get intouch with?

  3. simon

    my father got injury 2003 and found nothing
    so what I have to do

    • Madelein van der Watt

      Hi Simon

      If your father was injured on duty and reported the incident to his employer, the employer should have submitted a claim to the Compensation Fund. If the Compensation Fund found the injury to be valid and they were satisfied that it occurred on duty, compensation would have been paid to your father. There are quite a few requirements and details required involved therefore I suggest you speak to the Compensation Fund if you need to query this further.

      Regards

      Madelein

  4. carlin

    WILL THE ROE DEADLINE FOR SUBMISSION BE EXTENDED? I have had problems with the website to log in, it is not my fault all my returns could not be submitted in time.

    carlin

    • Madelein van der Watt

      Hi Carlin

      No extension has been announced yet and I am not sure whether they will allow an extension after it was already extended from 31 March to 30 April.

      Regards

      Madelein

  5. Karen

    Trying to get in contact with the Compensation Commissioner concerning Letter of Good Standing is a night mare.Ii have tried all the email addresses, faxes and telephone numbers. It is as if we are just being ignored. Letters of Good Standing were issued in the past, for a month, once your “Return of Earnings” was handed in and payment was only due in a month. We are missing out on jobs due to not being able to get any reply.

  6. Peter Hawkes

    The definition of a discount is “Deduction from the face amount of an invoice, made in advance of its payment” and is distinct from a rebate which involves “Return of a portion of a purchase price by a seller to a buyer, usually on purchase of a specified quantity, or value, of goods within a specified period. Unlike discount (which is deducted in advance of payment), rebate is given after the payment of full invoice amount” (both definitions from BusinessDictionary.com). From this it is quite clear that those in the office of the Compensation Commissioner do not understand the English they are using and should perhaps try to stick to using words of one syllable. What they were offering is clearly a rebate, NOT a discount, and should not have been advertised as the latter. IDIOTS.

    • Madelein van der Watt

      Well said, thank you Peter!

      The next reporting period is only a few months away. Let’s hope they get it right next year.

  7. Kobus

    Hi Madelein

    I tried to log in today……. password did not work. Had to reset. Surprisingly that worked.

    Wanted to see if I can do my new submission, but that did not work. Or I just could not get it right.

    Have you got any idea about this.

    Maybe I am just to early.

    • Madelein van der Watt

      Hi Kobus

      I did notice that they have upgraded the online system and a notice on their website instructs users to clear all temporary internet files on your system to ensure that the new system functions properly. If you already tried that with no success, you will have to contact their call centre for assistance as I do not have any further information on the topic. As soon as I do, I will publish a new post.

      Regards

      Madelein

      • I have as yet been unable to determine exactly how the Compensation Commission intends to refund the “discounts” offered, despite several communications back & forth between me and the office of the Compensation Commissioner – they simply ignore my questions about how – since they do not have my banking details – they had intended to refund me. If anyone is able to inform me how the refund (NOT “DISCOUNT”) process is supposed to work, I would be very grateful.

  8. Kobus

    %&*^%$

    I managed to do my 2013 return and received my assessment.

    It tells me I am invoiced for Rx. Must pay within 30days.

    Where is my discount of last year? FFS

    I have in total wasted 40 minutes so far holding on for nobody on the phone to them about this. And even if I got through ………….

    • Hi Kobus – If I understand correctly, you did your 2012 assessment last year and paid the full invoiced amount within the period specified to qualify for the “discount”, but have not yet been refunded this amount, and it has also not been deducted from your 2013 assessment? If so then this once again indicates that the Compensation Commission is acting in bad faith and had no intention to repay the “discounts” offered (or at least had no capacity to do so). I would appreciate it if you would confirm whether or not I have understood this correctly, as I think that the entire mess should be taken to the Public Protector, since the Advertising Standards Authority has chickened out of taking any action.

  9. Kobus

    You understand me 100% correctly.

    Where can one get details of where this discount was offered. Officially.

    • Hi Kobus

      I downloaded a copy of the document advertising the “discounts” (which was available on the DoL website last year but which I can no longer find there…wonder why?) and can email this to you if you give me an address. It was also advertised in various newspapers and I think radio stations; in a complaint submitted by a Mr Milner to the ASA (see http://www.asasa.org.za/ResultDetail.aspx?Ruling=6614 in which the ASA demonstrates its utter lack of understanding of the English language and has the cheek to give a ruling on the term “discount”, despite having failed to check the dictionary definition of this word) there is reference to an advert in the Star Business report of 17 April 2013.

      After being refused a letter of good standing last August (last year I had deducted the discount from my assessment, as one logically should, and paid the resulting amount within the 30 day period required) I followed up on the ASA complaint and provided them with relevant definitions relating to “discount”, “rebate” and “refund” which demonstrated quite clearly that their ruling was erroneous, but they declined to do anything about it as my complaint was made more than 90 days after the advertisement had appeared!

      Repeated requests for clarification on how the “refunds” of the “discounts” were supposed to be made have met with no response from the Commission; it’s clear from your case that in fact they had no idea of how they were going to do this, if indeed they intended to at all.

      Best wishes
      Peter

  10. Ebrahim

    Hi Guys – I too made full payment last year immediately after hearing about the discount offering on a local radio station. When we called them last year, to check if the discount could be taken off the invoice amount, we were told not to, and that the discount would be passed in the ffg year. So now we in 2014 – a year later and guess what, we submitted our returns and receive the invoice again for the full amount with no discount taken off and if you call COID, they have no answers on the discount. It is simply forgotten.
    Departments making promises on all media channels and no one know anything about it !!!

    I think all business should stand together and refuse to pay COID this year, up until the promised discounts is passed .

  11. I think we should get together a list of as many people as possible who either like me, after being unable to reach the COID by phone, nor get a response to email queries, paid the discounted amount and now cannot get a letter of good standing, or like Ebrahim and Kobus, paid the full amount and have never received the “discount” promised, and pass this on to the Public Protector or the Commercial Crimes division of the SAP for investigation….this is fraud, pure & simple.

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