Self Employed

SELF-EMPLOYED PERSONS GUIDE

Who is Considered Self-Employed

You are self-employed if you operate a business of your own, trade or profession either by yourself or as a partner and do not work under the control of an employer.  If a self-employed person engages in trade or business with his or her spouse whether for wages, as a partner or other similar arrangements (s)he is considered self-employed.  However, if a person engages in any such activities for less than 10 hours during a contribution week, (s)he will not be considered self-employed.


Registration


If you were self-employed on February 15, 1992 (at the inception of the scheme) or became self-employed at anytime after that date, you must register with the National Insurance Board within 14 days of becoming self-employed.
To register, complete the Insured Person's Registration Form, Form Ins 003 and submit it to a convenient Board office.  When you register, you will be assigned a National Insurance Number (NINO) and will be issued a registration card bearing your name and NINO.  You are responsible for the safe keeping of your registration card. Without your number you will not be able to pay contributions into the scheme and you will need to quote your NINO when communicating with any of the Board's offices.


Liability For Contributions


A self-employed person is liable to pay a contribution for each contribution week or part of a week that (s)he is employed as a self employed person.
No contribution is payable when the self-employed person reaches the age of 65.
If you work both as a self-employed person and as an employed person in the same contribution week, you will not have to contribute as a self-employed person and therefore will be liable for payment of contribution as an employed person only.

How Much Can A Self Employed Person Elect As Weekly Income


As a self-employed person, you can elect a weekly income of any one of the following:
$100.00; $200.00; $400.00 or $600.00.  Your contribution will be assessed on the weekly income you elect.
There are certain election stipulations that apply to self-employed persons aged 50 and over, they are:
(1)      A self-employed person who is over the age of 50 on April 6, 1992, can only elect a weekly income of $100 or $200.

(2)When an insured person who has paid contributions as a self-person reaches the age of 54, (s)he will be liable to pay contributions on the same weekly income that was elected in the of year his 54th birthday for any subsequent years up to retirement.

(3If an insured person aged 54 or older has never paid contributions as a self- employed person, (s)he may elect a weekly income or either $100 or $200. Having made the election, contributions will be paid on the same earnings for any subsequent years up to retirement.


When Should Elections be Made


As a self-employed person you must elect your weekly earnings not later than the end of the calendar month following the month in which you began working as a self-employed person.  For example, if you became self-employed during the month of January, you must elect your weekly earnings by the end of February; this also coincides with the time your first contribution payment is due.
Your weekly income election is valid for a contribution year.  In each subsequent year, you may change your election on the anniversary of you becoming self-employed; however, your choice is limited to an election that is either immediately higher or lower than that of the year before.  If you do not formally change your election by your anniversary, you will be liable to pay contributions on the elected weekly income of the preceding contribution year. 
If no income had been elected in the preceding year, the Director is empowered by the Regulations to investigate your employment and determine a weekly election for you.



Rate of Contribution


Your contribution as a self-employed person is 6.80% of the amount of weekly income that you elected.



When and How Should Contributions be Paid


Unlike the majority of insured persons who work for someone else and will have their earnings reported by their employer, self-employed persons must report their earnings and pay contribution themselves.
Contributions payable to the National Insurance Board for any contribution week that you work within a calendar month must be paid not later than the end of the following calendar month.
Contributions can be paid at any of the Board's offices by cash or cheque.  Either you or an agent may pay contributions on your behalf.  Payments can also be posted. If you are mailing your contribution, do not send cash. Payment should be made by a cheque payable to the National Insurance Board.
With each payment of contribution, the self-employed person must complete and submit a "Monthly Contribution Statement" (MCS), Form Ins. 07. Instructions on how to complete the form are given its reverse side.  Correct names and National Insurance Numbers (NINO) are the keys to successful processing of contributions.  You may be subject to penalties if the MCS is incomplete.



Additional Charges


Employers submitting contributions 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.



Notification of Termination of Self-Employment


A self-employed person who terminates his or her employment must notify the termination to the nearest Office of the Board.  To terminate your employment, complete and submit Form Ins. 021 "Notification of Termination of Employment by a Self-Employed Person".  This notification must be submitted not later than the end of the calendar month that follows the month in which the termination occurs.



Benefits


As a self-employed person you are entitled to Sickness, Maternity Benefits, Retirement Pension, Retirement Grant, Invalidity Pension, Survivor's Pension, Survivor's Grant and Funeral Grant. However, self-employed persons are not entitled to Employment Injury Benefit.   Details of these benefits are given in the respective benefit guides.



Inspection of Self-Employed Persons


Every self-employed person is subject to inspection by an Officer of the Board who is appointed as Inspector or Compliance Officer.
The National Insurance Board 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. 
NIB Inspectors will provide proper identification during any inspections.




Note: A self-employed person's failure to pay contributions or to comply with any obligation imposed on him by the legislation constitutes an offence, which is punishable by a fine or imprisonment or both.


Site Navigation