The Return of Earnings (ROE) is the annual declaration employers submit under the Compensation for Occupational Injuries and Diseases Act (COIDA), reporting total earnings paid to employees for the period.
What it means
The Compensation Fund uses the declared earnings, together with an industry risk classification, to calculate the employer's annual OID assessment - the levy that funds compensation for employees injured or who fall ill because of their work.
Where it fits in
The ROE is separate from the SARS EMP201/EMP501 cycle - it is filed with the Compensation Fund (or a licensed compensation insurer, depending on the employer's arrangement), not SARS. It draws on the same payroll earnings data, which is why payroll records need to support both submissions consistently.
Key rules
- Filed annually, covering the prior period's actual earnings.
- Earnings are capped at an annual maximum set by the Compensation Fund for assessment purposes.
- Underestimating or late filing can result in penalties and a higher provisional assessment the following year.
- A current Letter of Good Standing, which many clients and tenders require, depends on the ROE being filed and the assessment being paid.
