CMV Group – Accountants & Legal Consulting

RETURN OF EARNINGS (ROE)

All companies with employees must be registered at the Compensation Commissioner. The employer then needs to submit an annual Return of Earnings on the Department of Labour website.  We will assist you in doing the registration as well as the submission of the returns.  After all the returns have been submitted, and payments are up to date, only then will you be able to receive a letter of good standing.  Please see how we will assist you in making the process easy and painless, as we will do all the work.

Who must register at the Compensation Commissioner?

Every company with employees needs to register at the Compensation Commissioner and are obliged to submit their returns annually to the Department of Labour.

What do you need to register as en employer at the Compensation Commissioner?

We will need to complete a WAs.8 Form and submit the following supporting document together with the application form:

  • Certified company registration
  • Certified copy of ID-document/s of the sole proprietor, members of the Close
  • Corporation or director/s of the Company.

How do you submit the ROE?

When the registration is finalised, usually after 21 working days from submission, we will receive a reference number.  With that reference number we will be able to register the company on the website.

After registration, we will have to submit your returns from the year the company started to trade. Every employer must submit their employee’s actual salaries paid during the past financial year, as well as the projected salaries for the coming financial year.

If there were no salaries paid, we still have to submit a return for that year.  There is a minimum amount to be paid to the fund, regardless if there were no salaries paid.

How does the company get assessed?

Every company is being categorized on their type of business conducted and then you are classified in a sub-class.  Every sub-class has its own risk tariff which represents the percentage of the risk of injury the employees have in their line of work.  So the more dangerous the work, the higher the percentage on which the company will be assessed.

After declaring the salaries for the year and the coming year, the company will be assessed against the risk tariff and the assessed amount will have to be paid by the employer.  The assessment will consist of the assessed amount for the current year based on the actual salaries paid less the projected assessed amount for the current year, which was submitted and assessed the previous year, plus the projected assessed amount for the coming year. This return must be submitted annually and up to date in order to receive a letter of good standing.

Why pay the Compensation Commissioner?

The contribution you pay on the return are for cover against any medical cost occurred by injury in the line of duty.

Why is a letter of good standing necessary?

For employers who submits tenders, it normally a requirement to submit the letter of Good Standing with the tender documents. For an employer to be in good standing the following need to be in order:

  • The employer needs to be registered at the fund.
  • All outstanding return of earnings need to be submitted.
  • There must be know outstanding amount due.

A letter of good standing is valid for a year only, so you need to submit your return annually and pay the money to the fund in order to receive a letter of good standing every year.

When is the ROE due?

The ROE is due on the 31st of May 2019

The 2019 financial year’s salaries and the projected 2020 financial year’s salaries must be submitted on the 2018-return.

Please contact us if we can assist you with above or if you have any queries regarding above.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

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