Compensation Fund Earnings Threshold for the 2022/23 Year of Assessment
Each year the Compensation Fund publishes the change to the earnings threshold in a Notice signed by the Commissioner and published in a Gazette.
The threshold limits the earnings calculated by the payroll per employee from 1 March 2022 until 28 February 2023 to assist the employer to complete the annual Return of Earnings form (ROE or W.AS.8 return).
After prompting from the PAGSA and explaining the urgency, earlier this week the Fund kindly provided me with the new earnings threshold (effective from 1 March 2022) and a copy of the Return of Earnings form.
With statutory changes of this nature, I ere on the side of caution and prefer to wait for the Gazette notice. However, it seems that the Government printers are having difficulties, the notice of the increase has not yet been published in a Gazette, and it seemed pointless to delay the issue of this information any longer.
Earnings Threshold for 2022/23
Having been assured by the Fund that the information provided was correct and that I could rely on it, in the interests of getting the information to you as quickly as possible, I decided to issue this Newsflash with the details.
As can be seen from the Return of Earnings form in the appendix to this Newsflash, the earnings threshold for the 2022/23 year of assessment is R529 264, effective from 1 March 2022.
General Matters
Dates for Return of Earnings Submission by Employers
As has been the practice for a number of years, the closing date for the submission of the Return of Earnings has been postponed from a 31 March date (as specified in the COID Act) to 31 May 2022.
The Fund’s website will be opened to allow employers to submit their returns from 1 April 2022 until 31 May 2022.
Year of Assessment Terminology: COID Regulation Gazette No. 44409 – 1 April 2021
The Department in Gazette No. 44409 of 1 April 2020 (‘yes’, April Fool’s day) clarified that the year in which the starting month falls, indicates the year of assessment.
For example: the 2022 assessment year is the year starting 1st March 2022 and ending 28th February 2023.
Those of us in the tax world who are used to the naming principle that the year of assessment is indicated by the year in which the ending month falls, will simply have to get used to the naming principle in the world of labour.
Regards,
Rob Cooper
Chairman Payroll Authors Group of South Africa
All information provided by the PAGSA is subject to our DISCLAIMER.
APPENDIX: RETURN OF EARNINGS
2021
CF-2A FORM: COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT 130 OF 1993
RETURN OF EARNINGS
Section A – Employer’s details
Name of Employer
CF Registration No
UIF Registration No
CIPC Registration No
SARS Tax No
Business Address
City/Town
Province
Postal Address
Code
Employer Telephone No
Mobile Telephone No
Employer’s email address
Consultant’s email address
Consultant’s Telephone No
SECTION B: Declaration of Earnings
CF Registration number:99
Actual Earnings:01/03/2021 – 28/02/2022
Provisional Earnings:01/03/2022- 28/02/2023
Month
Number of employees and amount of earnings (staff costs/salaries & wages) per month paid to all employees (excluding directors of a Company or members of a close corporation) up to a maximum of R 506 473 per person for the above period.
Number of directors/members and amount of earnings (staff costs/salaries & wages) per month paid to directors of a Company or members of a Close Corporation up to a maximum of R 506 473 per person for the above period.
Number of employees and amount of earnings (staff costs/salaries & wages) per month expected to be paid to all employees (excluding directors of a Company or members of a close corporation) up to a maximum of R 529 264 per person for the above period.
Number of directors/members and amount of earnings (staff costs/salaries & wages) per month expected to be paid to directors of a Company or members of a Close Corporation up to a maximum of R 529 264 per person for the above period.
Number of employees
Earnings – (Rands only)
Number
Earnings – (Rands only)
Number of employees
Earnings – (Rands only)
Number of employees
Earnings – (Rands only)
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Total
FINAL EARNINGS PAID
ESTIMATED EARNINGS
Total earnings of both employees and Directors/Members:
Total cash value of free food and/ or quarters. (if applicable) in Rands.
GRAND TOTAL OF EARNINGS
State in words the grand total of earnings:
State in words the grand total of earnings:
SECTION C: Declaration of Oath
CF Registration number:99
I confirm that the information given in this form is true, complete and accurate:
Any information submitted may be subjected to verification. Information submitted knowingly is false may result in a legal action by the Compensation Commissioner.
If an error is detected after submitting your return of earnings, you have 60 days from the date assessed to apply for the revision of assessment. The request must be forwarded to cfcallcentre@labour.gov.za or call 0860 105 350 for assistance.
Declaration by the Employer:
Name & Surname:
Designation/Capacity:
Signature:
Date:
Telephone No:
e-mail address:
Declaration by the Consultant
OR If using a service of a consultant (attach a Power of Attorney and complete)
Name & Surname:
Consultant’s Company Name
Signature:
Date:
Telephone No:
e-mail address:
Registered Professional Body & Practise No.
For Office Use Only
