CF Notice: Deregistration by Inactive Employers
Background
Legal entities with employees as defined by the Compensation for Occupational Diseases and Injuries Act (COIDA) are required to register as employers with the Compensation Fund.
Note that this requirement excludes domestic employers until the COIDA Amendment Bill is promulgated and made effective.
One registered with the Fund, all employers must every year submit the Return of Earnings (ROE) form (usually by the extended due date of 31 May) that declares the total earnings of all employees for the past year of assessment (March to February), as well as the estimated total earnings for the year of assessment that lies ahead.
If the employer ceases to operate a business or no longer has any employees, the entity must deregister as an employer with the Compensation Fund as soon as possible.
Compensation Fund Deregistration Notice
The full notice (including the deregistration form) can be found in Government Gazette No. 46269.
For your convenience, the main points of the notice are included at the end of this Newsflash.
It is important to note if the entity fails to notify the Compensation Fund that it is no longer active as an employer, the Fund will assume that the employer is still operating and will expect ROE’s.
This will result in an estimated Notice of Assessment that will include penalties and interest and that is legally binding for payment by the employer.
Deregistration Administration
It has come to my attention that deregistration is not an online process and must be done manually.
Unfortunately there are complaints that the manual process is cumbersome, and possibly flawed in that some deregistration applications seem to ‘disappear’.
The PAGSA has requested the Fund to convert the current process to an online application as soon as possible.
Regards,
Rob Cooper
Chairman Payroll Authors Group of South Africa
All information provided by the PAGSA is subject to our DISCLAIMER.
THE NOTICE ISSUED BY THE COMPENSATION COMMISSIONER UNDER COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT, 1993
In terms of Section 6A (b) of the Compensation for Occupational Injuries and Diseases Act, 1993 (Act 130 of 1993 as amended by Act 61 of 1997), I, Vuyo Mafata, in my capacity as the Compensation Commissioner, and acting in terms of Section 4 (1) (l), wish to publish and communicate the following:
a) The CF-1C Application for Employer Deregistration Form;
b) To request Employers to notify the Compensation Fund (CF) where they have ceased to operate a business or no longer have employees to be covered by the CF;
c) The fully completed CF-1C Forms must be forwarded to cfoutbound@labour.gov.za (please contact the CF Call Centre at 0800 321 322/0860 105 350 for further clarity);
d) Should the Employer fail to notify the CF on the status of their business, the CF will assume that an employer is still operating and estimate assessments for all outstanding ROEs. Any Notice of Assessments issued with such estimates will be legally binding by the Employer for payment;
e) Failure to make a payment will result in interest and penalties charged on overdue amounts.
[The full notice that includes the CF-1C form can be found in Government Gazette No. 46269]
