What Happens If I Don’t Submit My COIDA Return of Earnings?
Quick Answer
What Happens If I Don't Submit My COIDA Return of Earnings?
If you skip the COIDA Return of Earnings, the Compensation Fund estimates your assessment (usually upward), adds a 10% late penalty, and blocks your Letter of Good Standing – which kills tenders. Worst of all, a workplace injury while non-compliant leaves you personally liable for compensation.
What this means in plain language
The Fund does not chase you gently. An unfiled return triggers an estimated assessment based on what they think you owe – and estimates are rarely kind.
The hidden cost is the Letter of Good Standing: no current return and payment, no letter. Construction sites, mines and corporate procurement will not let you past the gate without it.
Who this applies to
- Employers who missed the 31 March deadline
- Businesses that stopped trading but never deregistered from the Fund
Step by step
- File the outstanding return(s) immediately – filing late beats not filing.
- Pay the assessment plus the 10% penalty when invoiced.
- If the estimate is wrong, submit actuals and request a revised assessment.
- Once paid up, request your Letter of Good Standing again.
Common mistakes to avoid
- Ignoring the estimated assessment – it is legally collectable even if wrong.
- Assuming a dormant business is exempt – file a nil return or formally deregister from the Fund.
- Letting staff onto sites without checking the Letter of Good Standing is current.
A South African example
A Durban scaffolding company misses two returns while changing bookkeepers. The Fund estimates assessments at double the real payroll, adds penalties, and a mine contract stalls for three months while the corrections are processed – far more than the assessments ever cost.
Related questions
- What Is a COIDA Return of Earnings (W.As.8)?
- What Is a Letter of Good Standing (COIDA)?
- UIF and COIDA: The Complete Employer Compliance Guide for South Africa
Always verify this information with official South African government sources. Rules, fees and thresholds change. Check SARS, CIPC, the Department of Employment and Labour or gov.za before you act.
Frequently Asked Questions
What is the penalty for a late COIDA return?
A penalty of 10% of the final assessment, plus the Fund may issue an estimated assessment in the meantime – which is usually higher than your actual liability.
Can I get a Letter of Good Standing with an outstanding return?
No. The Letter of Good Standing requires your returns filed and assessments paid. Any outstanding item blocks it until resolved.
Am I covered for injuries if my return is late?
Cover exists in principle for registered employers, but non-compliance exposes you: the Fund can recover from an employer in default, and you risk personal liability and penalties. File and pay – that is what keeps the protection real.
Official sources
About BizAnswers: BizAnswers is a privately owned South African company – not a government department. Our guides are free to read and show you how to do things yourself through official channels. If you would rather have the paperwork handled for you, we assist individuals and businesses with filing their South African tax returns and staying compliant, which is a paid service, not a free government service. Contact us for help.
Last reviewed: September 2026 by the BizAnswers editorial team. How we write and check our guides.
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