COID Registration and Letter of Good Standing (Department of Labour)

If you would like any assistance with applying for you COID registration, please use the following link:
www.swiftreg.co.za/swiftreg/P...
We at SwiftReg look forward to assisting you. We have a dedicated call center 021-595 44 33 (available during business hours) alternative please browser our website on www.swiftreg.co.za/index.aspx for more services.
And now for the video script... :)
In this video I will explain who needs to register for COID and how to get a Letter of Good Standing. But I first need to outline the basics of COID.
COID is a government insurance fund whose purpose is to compensate employees who are injured, or disabled at work and to compensate the dependents of those who die while at work. It protects the employer from any civil claims made by employees which is a major benefit as all parties are effectively covered.
COID or COIDA stands for Compensation for Occupational Injuries and Disease the A stand for the ACT so most people just refer to the registration as COID. Money is collected from the businesses and goes into a compensation fund known as the Workmen’s Compensation Fund which is used to pay out the funds in the case of successful claims.
So who needs to register for COID?
The short answer is every business. There are a few exceptions such as government departments and certain mining and building sectors which are exempt as they have their own separate insurance. But other than that, every business should register for COID.
There are 2 main reasons why companies should register for COID; firstly, for the insurance cover; as many small businesses will not be able to withstand a large unexpected claim such as a medical bill and secondly, many tenders require a COID registration with a Letter of Good Standing. The Letter of Good Standing is a certificate stating that your company is registered for COID and all your payments to the compensation fund are up to date. The Letter of Good Standing gives the business that you are contracting with, peace of mind as they will not be liable for any injuries to your staff which took place on their premises.
So how do I get my Letter of Good Standing?
This is a two stage process; firstly, you have to be registered for COID and have submitted your Return of Earning to the Department of Labour. The Return of Earnings is an estimate of the total of your projected staff salaries (both full time and part time, but excludes owners salaries) for the year in advance. This total projected wage bill will be used to calculate what is due to the compensation fund. The contributions vary depending on the type of business and its risk profile so if the business is in a higher risk sector then the contribution will be more.
The second stage is for the Department of Labour to assess the Return of Earnings. This usually takes about 3 days after which they will send a Notice of assessment with the amount due to the compensation fund. Once you have settled this a Letter of Good Standing will be issued.
Employers are obliged to register for COID within 7 days after the date the first employee starts working; while the return of earnings must be submitted each year on or before 31 March. The letter of good standing is valid from 1 April until 31 March of the following year. So if you apply for COID in say January, your letter of good standing is only valid for 3 months - that is until 1 April when it will need to be renewed.
Just log on to our website and complete the 2 page online application, it really is that simple but if you get stuck don’t hesitate to get in contact with our friendly call centre. I hope this video was helpful so as always remember WE ARE HERE TO HELP
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[@brendonkhwela538]

Thanks for the explanation. Do general contractors (with no employees) operating on a subcontract basis need to register?

[@swiftreg]

Hi Brendon It is optional, however if you do not have any employees then the application process is a manual one vs and online application if you do have employees. The manual application can be very frustrating and take a long time as the Department of Labour is not very efficient.

[@lquidfire]

Hi! Great video, I just stumbled upon this and Subscribed! Do you register for separate categories (e.g. Admininstration, and then WoodWorking) if you have separate teams? They are not the same risk? Thank you for your reply!

[@swiftreg]

Hi there, great question. Yes, you can add different categories for the same company, however they don't allow you to add the number of employees for each category in order to generate an accurate calculation. They only have one data entry cell for total number of employees. Which in my mind, does not make sense.

[@lquidfire]

Thank you for the swift reply,@@swiftreg. Much appreciated! I guess there is no point in adding other categories then. After commenting here yesterday I found the COIDA SERVICE BOOK v23, where it states on p.17 that "[a] business is regarded as a unit, including all operations incidental thereto, including administrative staff." (Source: www.labour.gov.za/DocumentCenter/Publications/Compensation%20for%20Occupational%20Injuries%20and%20Diseases/COIDA_SERVICE_BOOK_VERSION_23.pdf) We run a woodworking workshop, and also sell online. The thing to do would be to have two separate businesses, I guess. But at our scale that does not seem to make sense.

[@swiftreg]

Agreed, you are making the correct decisions

[@davefeldman7695]

Hi Douglas. Thanks for this information. We are a relatively new business who had Swiftreg assist us with most all our registration support. We are 2 owners and L2 BB-EEE. We have no budget for a permanent staff contingent yet and our income target is between 2 to 10 Mil/ annum. We are in a high risk industry. Can we apply for Coida?

[@swiftreg]

Hi Dave, thank you for your support. The short answer is no, however as soon as you employ your first permanent or temporary contract worker you can.

[@varsitytv2325]

i have a question..can i get the letter og good standing ..e4ven if i dont have employees yet?

[@swiftreg]

Hi Varsity TV. Unfortunately no

[@juniorramuedzisi55]

When I register on the comp easy website do I need to provide the CF number for my company or for the company am generating LOGS for ??

[@swiftreg]

Hi Junior, I have limited experience on the CompEasy website but my guess would be to use the CF number of the company that you are generating the logs for. Please let me know if that works for you so that we can share the experience with others. Kind regards Douglas

[@juniorramuedzisi55]

@@swiftreg I will consider that but my concern is won't that then add me as an employee for the said company that I'm generating LOGS for ??

[@swiftreg]

No, it should not.

[@keketsotsotetsi5148]

I am trying to register/ capture new organisation but upon pressing the submit button, I get an error (all fields with an asterisk are mandatory) whereas I have filled everything. Kindly assist

[@swiftreg]

Hi Keketso, that is super frustrating, unfortunately we do not have control over their website. Maybe their database had a temporary glitch. I would suggest you try again; if it still fails you should contact them telephonically on 0860105350 to report the error.

[@papikithaisi1007]

​@@swiftregi am struggling to pass nature of business, it says i must choose between 1 and 10 nature of business. I chose 7 am interested in and it does not wanna go through, can you kindly help.

[@eppietshibi537]

Good day , Im stuck with how to calculate the figures that will be submitted to DOL

[@swiftreg]

Hi Eppie, the calculation is as follows: Add up all the current and future employees salaries for the month, but excluded the directors salaries; then times it by 12 to calculate the return of earnings for the year. The same method is used to calculate the directors ROI. Alternatively please contact the Department of Labour on 0860105350

[@fezokuhlempungose3616]

Hi how much if you make it for me

[@swiftreg]

Hi Fezokuhle, we charge R1950 for a COID registration. Please go to www.swiftreg.co.za or call us on 021 5954433 and ask for Sesethu