COIDA vs RMA – Why it is important to know
What is COIDA?
All employers need to register with COIDA. COIDA is a premium paid by employers that covers their employees in the event where they are injured whilst on duty. The premium also covers the employee in the event where they contract a disease due to the work conducted.
Registering for COIDA and submitting returns
Currently, the online registration portal of the department of labour is offline. Thus, companies have to do a manual registration and email the document to the department. After the company is registered, the department will issue the company with a CF number that starts with 99.
Right after the company has received their registration number, a return called a return of earnings needs to be submitted to the department. The department of labour will then issue the employer with an invoice that needs to be paid. Only after the payment is made in full, will the department issue a letter of good standing.
From then on, the company will have to submit a return of earnings every year during the month of May to the department of labour.
It is important to note that a letter of good standing will not be issued if there is any money outstanding or in the event where a return has not been submitted.
What is RMA?
The abbreviation RMA stands for Rand Mutual Assurance. RMA is exactly the same as COIDA, but they only cover companies who’s main business activities fall under class IV and XIII. This refers to mining and the steel industry. Below is a document that describes the subclasses which will enable you to determine whether you have to register at RMA.
COIDA subclasses (11 downloads )How to register for RMA.
Once you have determined that your company needs to register with RMA, the company first needs to register with COIDA at the department of labour. RMA will not register a company if they can’t supply them with a 99 number.
From registration at RMA, the process is the same. They will issue the employer with an invoice that needs to be paid before a letter of good standing is issued.
Important to note
The correct salary figures should be submitted to the department of labour or RMA as it is extremely difficult to amend returns once an assessment has been issued.
Click here for more info. Read more about RMA here.