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Under the National Insurance Act, Chapter 32:01 as amended, all employers and their employees and unpaid apprentices, except those exempted under section 29:01 and 29:02 of the Act, must register with the NIBTT. Employers are required by Law to pay contributions on behalf of all employees and unpaid apprentices and submit a monthly statement of contributions due and paid for all employed persons.
How To Apply For Registration as an Employer The employer must complete the Prescribed Form (N.I. 1 Application to Register as an Employer). All fields should be completed. However, the Registration may be effected if the following mandatory fields are completed. · Name of Business or Company. · Address of Business or Company. · Mailing address. · Name, Title and Home Address of Owners/Partners/Directors, and Date of Ownership. · Address where pay records are kept. · Address where personnel records are kept. · Nature of Business. · Number of Employees/Unpaid Apprentices. · Date Business Started. · Authorised Signature/Designation and Date of Application. Employer Registration is effected immediately upon receipt of the application except where the system data indicates previous registration of the employer. A Certificate of Registration is issued in the name of the Person/Business/Company immediately following Registration. Upon Approval of the Application: - The employer is provided with a package, which includes: a. Certificate of Registration b. An Employer’s Guide to National Insurance c. Copies of the Prescribed Forms (NI 4, N.I. 184 and NI 187) See Appendix I
Registration Of Employed Persons
Who Must Be Registered? 1. Any employee who earns $120.00 or more per week . This includes a married woman employed by her husband. The contract of employment may be written or oral, expressed or implied. The Apprenticeship may be paid or unpaid. 2. Anyone employed in a professional capacity on a full-time basis, for which a salary is paid. This includes a Doctor at a Hospital, a Priest, Pastor, Domestic or Nun who receives a salary of $120.00 per week or more). 3. Anyone employed as a share fisherman or Taxi Driver or Travelling Salesman, where a Contract allows for payment to be made on a share of earnings or profits. 4. Anyone employed temporarily with a Firm, Business Organization, Government Department or Statutory Body (e.g. student during vacation periods). 5. Insurance Agents or Car Salesmen who work on a full time basis and are paid by commission on sales $120.00 per week or more). 6. Foreign employees engaged in work in Trinidad & Tobago on a contract basis, or on work permits.
Who May Not Register? 1. An employee working for less than one hundred and twenty dollars ($120.00) per week. This refers to persons entering the system on or after January 7th 2008. 2. A person who is not a citizen of Trinidad and Tobago and who is exempt from Social Security Legislation by virtue of International Conventions governing Diplomatic and Consular Relations. 3. A person employed by an International Organization of which Trinidad and Tobago is a member and who is covered by a Social Security System operated by that Organization. 4. A person who has been granted exemption under the terms of a reciprocal social security agreement between that country and Trinidad and Tobago.
How To Apply For Registration of Employees 1. The unregistered employee or unpaid apprentice is required to provide his employer with all personal particulars necessary for proper Registration by completing the Prescribed Form (N.I. 4 Application to Register as an Employed Person) within seven (7) days of employment. 2. All fields on the Prescribed Form (N.I. 4 Application to Register as an Employed Person) should be completed. However, Registration can be effected, if the mandatory fields are completed. These mandatory Fields are: a. Surname b. First Name c. Date of Birth d. Place of Birth e. Sex f. Home Address g. Father’s Name h. Mother’s Name i. Marital Status j. Name and Address of Employer k. Application Date l. Signature (if person is no longer employed, NI4 will be accepted without signature) m. Registration number shown on any one of the following; i. Identification Card. ii. Driver’s Permit. iii. Passport The employer must submit all Prescribed Forms (N.I. 4 Application to Register as an Employed Person) to the NIBTT Service Centre within fourteen (14) days of hiring the employee. Where the employee ceases work prior to completion of the Prescribed Form (NI4), the employer will: - i. Complete the Form from his personnel records. ii. Insert the note ‘Completed based on employers records’ at the top of the Form. iii. Submit to the Service Centre for processing. Upon being satisfied that the application for Registration of an employee or unpaid apprentice is in order the NIBTT shall deliver to the employer a N.I. Registration Card for delivery to the employee and or unpaid apprentice and a list of the Registration Number of each employee, or unpaid apprentice, to be retained and used by the employer in doing business with the Board.
Obligations Of Employees/Unpaid Apprentices 1. Where an employee or unpaid apprentice is registered with the NIBTT, he must provide his employer with his N.I. No. within 7 days of employment. Where the employee or unpaid apprentice is not registered with the NIBTT, he must provide his employer with all personal particulars necessary for the proper completion of the registration form within 7 days of employment. Such persons will be responsible for the correctness of the particulars inserted on the application form. 2. Where the employer fails to register the employee or unpaid apprentice within 21 days of employment and informs the employee or unpaid apprentice accordingly, such person will apply to the NIBTT for registration within 28 days of employment. 3. An employee (excluding a domestic or casual agricultural worker) or unpaid apprentice who fails to provide the employer with complete and correct information needed for registration or, who fails to apply for registration within 28 days of employment will be liable on summary conviction to a fine of $500.00.
National Insurance Registration Cards A National Insurance Registration Cards will be issued to the following insured persons:- 1. New Registrant – a person for whom registration has been completed. 2. A person for whom Registration update has been completed upon data clean up. 3. Replacement Card Applicant – a person who has lost or damaged his card. Where the insured person has not been issued with a National Insurance Registration Card or where changes have been effected, a National Insurance Registration Card must be issued to the insured person at no cost to the insured. The N.I. Registration Card contains the following information: a) Name b) National Insurance Number
c) National
Registration Number being either the Electoral Identification Number or
the Drivers Permit Number.
An employer who ceases to be in business, must, within one month, inform the NIBTT and return the Certificate of Registration to the NIBTT. In the case of death or being declared bankrupt, your personal representative or trustee in bankruptcy must inform the NIBTT and return the Certificate of Registration within one month of death or bankruptcy. In the case of a body corporate, its Secretary shall inform the NIBTT when the name is removed from the Register of Companies under the provisions of the Companies Act, and return the Certificate of Registration to the NIBTT within one month. In the case of an unincorporated association of persons, the secretary or former partners must inform the NIBTT and return the Certificate of Registration within one month of the closure of the business. This must be done within one month of the removal of the name of the body corporate from the register of companies or the dissolution of the partnership as the case may be.
What are Earnings?
For National
Insurance purposes, earnings include more than the basic wage or salary.
Earnings also include: - · Acting allowances. · Overtime payments. · Cost of living allowances. · Commission on sales. · Production or efficiency bonuses. · Danger or dirt money. · Payments for standby duty. · Allowances for dependents. Therefore these should all be included in determining the earnings class of the employee for the particular pay period.
What Are Not Earnings The following payments should not be treated as earnings: Pensions for past services. Severance benefits. Payments under private health insurance plans. Dividends from investments . Only the first $1,915.38 per week or $8300.00 per month of the employee’s earnings is insured under the National Insurance System. This means that even if a person’s salary is more than that amount only the first $8300.00 is insured.
Payment Of National Insurance Contributions The payment of National Insurance contributions is compulsory for employees and unpaid apprentices who are registered or eligible to be registered under the system.
What Are Contributions? A contribution is a weekly payment fixed in relation to the wages/salaries of the insured person. Salaries and wages are structured into 16 earnings classes each of which carries an assumed average weekly earning. With effect from January 7, 2008, Contribution Rates have been increased from 9.9 percent to 10.5 percent of the assumed average weekly earnings as shown in Table A1 on page 26. The rates will further increase over the next two years: - · from 10.5% - 10.8% on January 4, 2010 as shown in Table A2 on page 27. · from 10.8% - 11.89% on January 2nd 2012 as shown in Table A3 on page 28. At the end of the three year period, the overall rate of contribution will have been increased by 10.5 percent from 8.4 per cent of insured earnings to 11.8 percent. The objective of phasing in the 1.5 percent contribution rate increase is for the specific purpose of softening the impact on employers who pay two-thirds of the contribution and the worker who pays the other one third. With effect from January 7, 2008 the income ceiling of $4377.00 per month has been increased to $8300.00 per month in order to maintain the real value of insured income.
Who Pays Contributions? Payment of the contribution is shared between the employer and employee in the ratio of 2:1. The employer is statutorily obligated to deduct the employee’s share no later than on the date of payment of salaries/wages. Notwithstanding the cost sharing described, the EMPLOYER is responsible for remitting the total contribution to the NIBTT. Any employer who fails to pay any contribution which must be paid, or deducts any part of the employer’s contribution from the employee’s wages, or contravenes any other requirement of the law, commits an offence and can be prosecuted and fined. In addition, the employer is obligated to maintain pay records for each of his employees including the unpaid apprentice. Such records must include the following particulars of each employee: · Full name · National Insurance Number · Salary/wages and the period to which such salary/wage relates · The value of the contribution paid for each week of the period to which the salary/wage relates The total contribution paid for the period to which the salary/wage relates Contravention of this requirement may attract a fine of $500.00 and 3 months imprisonment upon summary conviction.
Residents Working Abroad If you have an employee who is in insurable employment, (See "Which Employees Must Be Registered"), and that employee is required to work abroad for you, then, providing that: · The employee is ordinarily resident in Trinidad and Tobago; and · You maintain a place of business here Contributions must be paid for the employee at the normal rates during the period that he/she is working abroad.
Contributions Held In Statutory Trust Pursuant to Section 39.A of the National Insurance Act, an employer holds in trust for the NIBTT the total value of contributions due. These contributions must be kept separate and apart from the assets of the employer and must not be subject to attachment in respect of any of the employers debts or liabilities and must form no part of the assets of the employer in the event of liquidation, assignment or bankruptcy of the employer or his business.
Contributions are due in respect of each week or part of a week that an employee works with an employer. This includes periods of apprenticeship, probation or try-outs. Where salaries are paid in respect of a fortnight or calendar month, the numbers of contributions due are based on the number of Mondays in the said fortnight or month. Contributions are to be deducted no later than when the payment of such earnings is made. Contributions for a month must be paid on or before the last day of the month. However, there is a grace period up to the 15th day of the following month. Employers must remember that contributions for all employees (including paid apprentices, domestics and casual agricultural workers ) and unpaid apprentices, are due from the start of their employment, apprenticeship or probationary period.
Method Of Payment Employers are to submit completed employee contribution data either on magnetic media or on the N.I. 184 together with N.I. 187 Forms in duplicate with payment each month. A list of commonly used forms is attached at appendix I. Where employers do not have the National Insurance Number of employees, they must submit a completed N.I. 4 form for each such employee together with the other documents identified above. The Service Centre will process these N.I. 4 forms and provide the employer with the National Insurance Numbers for their employees and their future use and insert the National Insurance Numbers on the incomplete N.I.184 Form before transmission for data capture.
Evidence Of Payment The Form/s submitted to the NIBTT Service Centre will constitute evidence of contributions paid or payable. You must ensure that you obtain an official receipt and stamped copy of the Form/s submitted each time you pay contributions. If you are submitting your contribution data on a paper medium you must use the NI 184 Form - Contributions Due / In Arrears. Remember : You are required to have the correct National Insurance Number for each employee.
Method of Payment Your contributions are payable in Cash, Certified Cheque or Manager’s Cheque at the Service Centre in your district. Personal Cheques (including company cheques) will be accepted up to the Limit of a Valid Bank Card. Payment must be submitted with the relevant forms. Payment In Advance The NIBTT will accept payment in advance. This may occur in cases where persons receive salary in advance, e.g. when they go on vacation leave. To do so complete in duplicate one N.I. 187 form for the entire period. Reinstatement Of Pay Where you reduce an employee’s pay because of suspension, etc., and his pay has been reinstated, that employee has to be treated as if he did not lose earnings. You must therefore make adjustment payments to cover any underpayment of contributions. Retroactive Salary Increases Where there is a retroactive increase in earnings, e.g., salary, overtime, bonus, the adjustment of contribution class should be made only from the week/fortnight/month in which the increase was paid. Regular / Intermittent Employment Where employment is regulated so that an employee works a minimum number of days in a period, and the employee is paid as for the whole period, he/she may be considered to have worked for that whole period, and more than one contribution must be paid. For example, if the employee is given five days work per fortnight, and is paid by the fortnight, then two contributions must be paid. The employee’s fortnightly wage would be divided between the two weeks to determine the relevant Earnings Class.
Penalties And Interest On Arrears With effect from May 3rd 1999 the following penalties and interest payment will apply. i. Non-Payment of Contributions Where payment is not made by the 15th of the month following the month for which contributions are due a penalty equivalent to 25% of the sum due will be charged to the employer. e.g. contributions due for the month of June 2010 must be paid by July 15th 2010. Payment after this date will attract the penalty of 25%. However, if this sum (contributions due and penalty) is not paid by the 15th of the next month interest at the rate of 15% per annum will be charged on the outstanding sum until it is paid Example If contributions due for June 2010 are not paid by July 15th 2010 they will attract a penalty of 25%. If that total sum remains unpaid until August 15th 2010, interest of 15% per annum will be charged on the total sum (contributions due and penalty) for everyday after August 15th 2010. Where the 15th of any month falls on a non-working day penalty will be charged on the 2nd working day following the 15th. e.g. February 15th 2010 fell on a Sunday; penalty was applicable from Tuesday February 17th 2010. ii. Non-Submission of Contribution data/Submission of Incomplete or Incorrect Data Contribution data is due on the last day of the month for which contributions are payable. A penalty of $1,000.00 will be charged to the employer who fails to submit contribution data by the 15th of the following month and $20.00 per day from the 16th of the month until submission. A penalty of up to $1,000.00 will also be imposed for inaccurate/incomplete submission of data. Outstanding contributions include any amount payable by an employer as a contribution under the Act and deducted or due to be deducted from an employee’s wages or remuneration in accordance with the National Insurance Act.
Application for contribution statements can be made by completing the prescribed form (NI 183), or through a letter, providing, all relevant information is included in the letter i.e. · Name · National Insurance Number · Name of Employer(s) · Period(s) of Employment · Postal Address
Refund Of Contribution Overpaid National Insurance Contributions Regulation 16 (3) provides for the refund of contributions by the NIBTT. Persons who have overpaid contributions may apply for refund using the NI 79 Form. Where an employer makes an application for refund of contributions, the NIBTT shall require him to submit evidence of overpayment of contributions in respect of the person(s) for whom the erroneous contribution(s) was/were made. The employer must submit evidence to support his application. Such support will be: Upon submission of the above evidence of confirmation that no benefit was paid based on erroneous contributions and confirmation by the Authorised Officer, the NIBTT will make the appropriate refund.
Where an employee has multiple employment all employers must pay contributions on behalf of the employee. With effect from March 1st 2004 the law states: -
“Where an employee is employed by more than one person or where his earnings are paid jointly by more than one person during any contribution year in which a contribution is payable or where such employee works under the control and management of some person other than his immediate employer, the NIBTT shall total all contributions paid for the employee in that year and place the employee in the highest earnings class that such total contributions would permit for the number of weeks worked.”
Employers are required to issue their employee with a Termination Certificate within thirty (30) days of termination of employment. This certificate contains the following information. The employer must forward a copy of this certificate to the NIBTT on the same day it is issued to the employee. Failure to issue the certificate to the employee or failure to forward a copy of the certificate to the NIBTT attracts a fine of $4,000.00 and imprisonment for 6 months on summary conviction.
Where Contributions are outstanding for insured persons and the NIBTT believes that a person whether an employer or not is indebted to the NIBTT or liable to make a payment to anyone who is indebted to the NIBTT for unpaid National Insurance contributions (including penalties and interest) the Executive Director of the NIBTT may deliver a demand for payment to the first person (the payer) who must pay the demand to the NIBTT. Every person who receives such a demand for payment shall (must) pay the NIBTT at the same time as he would have paid the person who is indebted to the NIBTT. Where the person receiving a demand for payment is the employer of the person indebted to the NIBTT for outstanding contributions the amount demanded for each pay period, being an amount not exceeding one third of the sum payable to the employee during that period must be paid to the National Insurance Board. Failure to comply with a demand for payment makes the person receiving such a demand fully liable for the liability which he should have discharged.
The employer’s share of the contributions that is paid on behalf of their employees is considered an operating expense and is tax deductible in its entirety. The employee claims 70% of his share of the contribution as a tax relief.
The NIBTT, under the authority of the National Insurance Act, appoints the Authorised Officer (sometimes called the Compliance Officer), to ensure that the requirements of that Act are being met. The Authorised Officer is vested with certain statutory powers. The Authorised Officer has the power to enter any place at all reasonable times (except a private dwelling house which is not used for trade or business) where the Officer has reason to believe that a business is going on, and that there are employees within the meaning of the National Insurance Act (See “Which Employees Must Be Registered”). The Officer may also enter any place where books, records or other documents relating to employees are kept; and the Officer is empowered to examine all such books, records, documents or papers and may be assisted by any other person in the search. If it is considered that there has been a violation of the National Insurance Act or Regulations, the Authorised Officer may retain these records. In such a case, the Officer will give a receipt for any documents to be taken away.
The Authorised Officer must produce a WARRANT OF AUTHORITY. This Warrant has a picture of the Authorised Officer. As an employer, you should always ask to see this Warrant of Authority before allowing National Insurance documents to be examined or removed from your custody.
The Authorised Officers do not Collect Money for the NIBTT Authorised Officers are employees of the NIBTT whose duty is to ensure that you comply with the National Insurance requirements. They do not receive contribution payments or any other payments from you. All sums due and owing to the NIBTT must be paid to the cashier at the NIBTT Service Centre. If you are approached by anyone claiming to be an Authorised Officer of the NIBTT, who demands any payments from you, you should report this to the POLICE immediately. Authorised Officers DO NOT COLLECT money for the NIBTT.
Your Role In Your Employees’ Benefits If one of your employees applies for the Sickness, Maternity or Employment Injury Benefit, or if an employee retires, you will be required to provide certain information to the NIBTT on Section “C” of the relevant Application Form. Please Note... Forms must be returned immediately to ensure that your employees’ claims can be processed promptly.
Liabilities of Directors/Managers Where judgment is given against a body corporate, the Directors and Managers of such a body corporate may be jointly and severally liable together with the body corporate to pay the amount outstanding as well as the respective interest and penalties. The Director or Manager may not be held liable if he/she establishes that he/she exercised a degree of care, diligence and skill to prevent the failure to pay by the body corporate, which a prudent person would have exercised in comparable circumstances.
National Insurance Forms That You Will Need Whenever you perform National Insurance functions under the National Insurance Act or Regulations, you will have to complete the related National Insurance form. These are designed so that you can give all the information required to ensure the efficient operation of the system. All of these forms are available FREE at any National Insurance Local Office. The more frequently used forms include:
Sometimes you will be asked to complete two copies of a Form. One copy will be stamped and returned to you for your records. Keep the copies in a safe place, as they are your evidence that you have fulfilled your obligations as an employer. Still Have A Problem? If you have any difficulty in understanding your role and function with respect to National Insurance, you should visit the most convenient National Insurance Service Centre, where the Manager and staff will be pleased to assist you. In addition, an Authorised Officer will be pleased to provide you with further explanations or assistance upon request.
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