Important information and guidelines

NOTE: If you require assistance in this regard please contact FEM Underwriting Back Office.

The failure to submit a Return of Earnings in the prescribed time and the subsequent non-payment of the assessed premium by 30 June could result in the cancellation of any Merit Rebate due


1.1 EMPLOYEES

"Employee" means a person who has entered into, or works under a contract of service or apprenticeship or learnership with an employer, whether the contract is expressed or implied, oral or in writing and includes :

  1. Any person in your employ (irrespective of earnings) including:
    1. All working directors of a company or Members of a Close Corporation.
    2. Site personnel including casual labour.
    3. All clerical / Administration staff.
    Irrespective of age, race, gender, whether employed permanently or temporarily and whether the wages / salaries are calculated to time worked or work done.
  2. The employees of a (Sub) Contractor / employer without proven Compensation cover are deemed to be the employees of the (Mandator) Main Contractor and all their earnings must be included.
  3. A person provided by a Labour Broker, against payment to the Labour Broker for the rendering of a service or performance of work and for which work or service such person is paid by the Labour Broker, is an employee of the Labour Broker. The earnings of such persons should not be included in your Employer Return of Earnings.


1.2 EARNINGS

NOTE Earnings are all payments made regularly, before any deductions, whether in money or in kind to employees.

INCLUDE in Gross Earnings are:

  1. Overtime that is of a regular nature.
  2. Bonuses of a regular nature e.g. (Annual Bonus).
  3. Commission of a regular nature.
  4. The cash value of food and quarters provided to employees as part of their remuneration package.
  5. Cash value of fringe benefits - company car, accommodation, reduced rates etc.
  6. Where the employee is remunerated in accordance with a package of benefits.
  7. Earnings / Drawings paid to working Directors of a Company or Members of a Close Corporation.

EXCLUDED from the Gross Earnings are:

  1. Payments of a reimbursement nature.
  2. Occasional Overtime.
  3. Ex-Gratia payments.
  4. Intangible fringe benefits such as the taxable portion of employer contributions to medical aid / pension etc.
  5. Payments to cover special expenses such as subsistence and travel costs, lunches etc.
  6. Travel and other occasional allowance.
  7. If a Director / Member's only remuneration is profit sharing, the Director / Member is not an employee in terms of COID Act.
A sole Proprietor or partners in a Partnership are not regarded as "employees" in terms of the COID Act and their earnings should therefore not be declared in the Employer Return of Earnings form.


1.3 FINAL EARNINGS

If you have ceased trading, please include the date of cessation and declare the final earnings paid to that date


1.4 MINIMUM ASSESSMENT

In terms of Section 83.2 (b) of the COID Act, FEM has a minimum premium of R5, 000.00.


1.5 LETTER of GOOD STANDING

Please note that in terms of the OHS and COID Acts a Letter of Good Standing may only be issued by FEM provided : * The latest Employer Return of Earnings has been received by FEM. * Any outstanding premium has been paid in full.

Letters of Good Standing are not issued automatically and will only be issued upon request.

The Federated Employers' Mutual Assurance Company (RF) Proprietary Limited shall at their own discretion institute criminal proceedings against perpetrators who unlawfully alter or deface this letter with intent to defraud or misinterpret facts contained herein.