Businesses - especially SMEs - who have been struggling to file returns via the online ROE submission portal have been granted some welcome breathing space. Employers who did not receive their assessments in a timely manner will also welcome this news.
What information is important for the completing of the Return of Earnings?
The Compensation Fund has not always been as fast and efficient as employers would like it to be, leaving many SMEs without the letter of good standing they need for a range of purposes. Without it, they cannot tender for government business.
In construction, safety officers will not allow a new project to commence unless the company can produce a valid letter of good standing. The aim is to ensure that employees who are injured on site will be able to claim from the Compensation Fund and that the employer will not have to carry the additional costs of medical bills or wage payments during periods of incapacity.
The Compensation Fund will only issue this letter of good standing will if the following criteria have been met:
In 2013, the fund offered discounts on assessed returns if payment was made before a specific date. This was a great idea that was poorly executed. Companies were given very little information about how to apply for the discounts. The department required employers to make payment in full with the promise that the discounts will be passed at a later stage. This has yet to happen.
Despite the extension of the deadline, SMEs would be wise to remember the Compensation Fund's track record in administration and communication and submit the returns as soon as they can.
View the official notice published by the Department of Labour.
