Employers Guide

    EMPLOYERS GUIDE
    The majority of people who pay contributions into the National Insurance Scheme work for someone else. This person or entity is the 'Employer.' Generally, the employer will deduct National Insurance contributions from their employees' pay cheques, add to that contribution the employer's portion, and send it along with a Monthly Contribution Statement (MCS) to the National Insurance Board. However, there are other obligations under the National Insurance Legislation to which the employer must adhere. This guide gives a general overview of these obligations.


    Registration


    If you were an employer on February 15, 1992 or became an employer at anytime after that date, you must be registered with the National Insurance Board or become registered within 14 days of becoming an employer.
    To register, complete Form Ins. 001 and submit it to a convenient Board office. If you have a company, a Turks and Caicos Islands Business License must accompany the application form. All other employers should provide a copy of their passport.
    If you conduct business or have branches in more than one island or carry out more than one economic activity, there are two ways in which to register:
    1. The company may register as a single entity and likewise pay contributions for all branches at the same time; or
    2. The company must complete a registration form for each island or for each economic activity if it wants to make contributions for each branch or economic activity separately.
    When you register, a National Insurance Number will be assigned. This number is the first and most continuing link with the National Insurance Board. Without it employers will not be able to pay contributions into the Scheme. In addition, employers will need to quote this number when communicating with any of the Board's offices.
    It is the employer's responsibility to ensure that every person under his employment is registered with the National Insurance Board and has a National Insurance Number. If there are persons in your employment who are working for the first time and are unregistered, these persons must be registered within 14 days of being employed. There is a section of the employed person's registration application that must be completed by the employer and each employer must ensure that this section is completed before the registration form is submitted.


    Liability For Contributions


    An employer is liable to pay contributions into the scheme for any employee earning $25.00 or more per week or $108.00 or more per month. Contributions must be paid for each week or part of a week that the individual is employed. This liability exists even if the employee is employed at more than one place, or is self-employed during the same contribution week. In the case of an apprentice, the employer is liable for payment of contributions irrespective of the amount of his earnings.
    There is no liability for contributions if the employed person is under 16 or over 65 or if the insured person is receiving Sickness Benefit, Maternity Allowance or Injury Benefit during any full contribution week.
    The National Insurance Board defines a 'contribution week' as a period of 7 days beginning at midnight on any Sunday.



    Assessment of Contributions


    Employers must pay contributions on earnings of their employees up to maximum earnings of $600.00 if the employee is weekly paid and up to maximum earnings of $2,600.00 if the employee is paid on a monthly basis.
    The National Insurance Board defines earnings as the gross earnings of the employed person and includes the following:
    (a) overtime;
    (b) cost of living allowance;
    (c) family allowance or payments in respect of dependents;
    (d) any amount of transport allowance exceeding $100 per month;
    (e) any amount of telephone allowance exceeding $20 per month;
    (f) housing allowance;
    (g) supplements or rewards for long service or efficiency;
    (h) service charges, production bonus or incentive pay;
    (i) commission on profits or sales;
    (j) gratuities paid by the employer, excluding lump sums paid on retirement and any Christmas bonus or other similar payment;
    (k) payments in consideration of dirty or dangerous conditions;
    (l) payments on account of night or shift work;
    (m) holiday pay or other amounts set aside out of the employed person's remuneration throughout the year or part of the year to be paid to him periodically or as a lump sum.



    Who is Liable for Payment of Contributions and at what Rates?


    Both the employer and the employee are liable for payment of contributions to the National Insurance Board. However, it is the employer's responsibility to deduct or recover national insurance contributions from the employee's earnings and send the total contributions on to the National Insurance Board.
    Note: Employers must collect contributions from the employee by the end of the week or month in which the wages or salaries are paid. If the employer fails to deduct the contributions within the same week or month, these contributions cannot be recovered from the employee at any other time and the employer is liable to pay the full contribution.
    The table below shows the proportion of monthly contributions to be paid by the employer and employee:



    Contribution Rates Paid By Employers and Employees


    Contribution Category

    Employer

    Employee

    TOTAL

    Private Sector and Government Non Public Officers

    4.60%

    3.40%

    8.00%

    Government Public Officers

    4.025%

    2.825%

    6.85%

    Self-Employed

     

     

    6.80%

    Voluntary

     

     

    5.50%

    Temporarily Employed

    2.50%

     

    2.50%


    When should Contributions be paid?


    Contributions payable to the National Insurance Board for employees working in any contribution week of a particular month must be paid no later than the last working day in the following month.
    Contributions can be paid at any of the Board's offices in cash or by cheque. Either the employer or an agent of the employer may pay contributions on the employer's behalf. Payments can also be made via the post. However, if you are mailing your contributions, payment should be made by a cheque payable to the National Insurance Board.


    Additional Charges


    Employers submitting contribution statements after the prescribed period will be subject to a 10% penalty for each month or part of a month that the contribution payment is delayed.


    Wage Reporting


    With each payment of contributions, the employer must complete and submit a "Monthly Contribution Statement" (MCS), Form Ins. 007. Instructions on how to complete this Form are given on the reverse of the Form. Correct names and national insurance numbers (NINO) are the keys to successful processing of contributions. You may be subject to penalties if the MCS Form is incomplete.
    The National Insurance Board will help you to verify the National Insurance Numbers when you are preparing your MCS Forms for submission. For assistance, call or visit one of the Board's offices. You will need the following information to verify each name or NINO:
    (1) NINO,
    (2) last name,
    (3) first name,
    (4) middle initial (if applicable),
    (5) date of birth, and
    (6) sex.



    Wage Book


    All employers are required by law to keep a Wage Book. The following information must be recorded in the Wage Book:
    (a) The employee's full name, address and national insurance number;
    (b) The date the employment commenced and terminated;
    (c) The amount of each payment of earnings and the period that each payment covers.


    Accident Book


    Every employer must keep an Accident Book in which the following particulars of all industrial accidents causing personal injury to any insured person must be recorded:
    (a) the full name, address and national insurance number of the person injured;
    (b) the date and time of the accident;
    (c) the place where the accident happened and its cause;
    (d) the nature of the injury cause by the accident; and
    (e) the name and home address of any witnesses to the accident.


    Inspection of Employers


    Every employer is subject to inspection by an Officer of the Board who is appointed as Compliance Inspector.
    The National Insurance Board Compliance Inspector is empowered by the Ordinance to enter any premises or place with the exception of private dwelling homes for the purpose of ascertaining that the provisions of the legislation are complied with and to make enquiries on any matters arising under the legislation. The inspection of an employer may include examination of the Wage Book, the Accident Book, ascertaining whether contributions have been paid, etc.
    NIB Inspectors will provide proper identification during any inspection.
    Note: Any employer who fails to pay contributions or to comply with any obligation imposed on him by the legislation constitutes an offence punishable with a fine or imprisonment or both.



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