|
Q.1 |
When
did the most recent increased contribution rates come into effect? |
| A |
January 04,
2010. There will be
subsequent increases in January, 2012. |
|
Q.2 |
Are
the contributions presently adequate to meet benefit demands? |
| A |
Yes.
However, future benefit expenditure is not 100%. Actuarial Reviews
will continue to be conducted every 5 years to examine whether the
level of contribution and investment income is adequate to meet
benefit and administration obligations. It is expected that further
increases in contributions
will be required. |
|
Q.3 |
Does
the employer still contribute twice that paid by the employee? |
| A |
Yes.
Also the employer alone pays class z contributions for unpaid
apprentices, persons
who are
over 65 and still employed and persons in receipt of a
retirement benefit and have returned to work. |
|
Q.4 |
What
if my employer deducts, but does not remit contributions on my
behalf to the board? |
| A |
Whether the employer makes the deduction is not even material.
You can visit the
nearest NIBTT Service Centre and fill out the complaint form. The
information provided would be kept under confidence and an
investigation launched. Should our investigations reflect that
he has failed to pay contributions due to the Board,
he commits an offence. This
offence carries a penalty of $4000 and 6 months imprisonment. The
employer will now have to pay the outstanding contributions as well as
the penalty. |
|
Q.5 |
What
if I pay my contributions late? |
| A |
A
penalty of 25% will be imposed from the 16th of the next month,
followed by interest of
15% on the total amount outstanding from the following month. |
|
Q.6 |
If
I am over age 60, but not yet 65, receiving a pension and (re)employed,
do I have to pay contributions? |
| A |
No.
As of March 01, 2004,
once you are over 60 years, receiving a retirement pension and have
been re-employed on or after March 01, 2004, then your employer pays a
contribution in class z for you. |
|
Q.7 |
What
happens to the contributions paid during this period? |
| A |
If
you received a retirement grant, a supplementary grant, based on
your additional contributions will be paid. If you were receiving a
retirement pension, the rate of pension will be re-calculated to
account for your additional contributions.
|
|
Q.8 |
Can
I pay in advance? |
| A |
Yes
you can. If however
there is an increase in contribution rates, then the employer will
have to remit the shortfall. |
|
Q.9 |
I
am the sole proprietor of a business, can I pay for myself? |
| A |
If
you were previously an insured person you can pay voluntary
contributions. If not no.
|
|
Q.10 |
If
I overpay contributions, will I get a refund? |
| A |
Yes,
both employer and employee.
|
|
Q.11 |
If
I employ temporary persons, do I have to deduct and pay
contributions? |
| A |
Yes.
You must register them and pay contribution. It is now an offence to
provided incomplete or inaccurate information of registration - the
fine is $500. For registering himself or his employee(s) late, the
employer is subject to another fine of $5000.
|
|
Q.12 |
Will
self employed persons be required to contribute to the system now?
|
| A |
No.
The system still does not yet cover the self employed.
|
|
Q.13 |
How
soon after applying will I be able to obtain a statement of
contributions? |
| A |
Within
one month. |
|
Q.14 |
Can
I still pay voluntary contributions? |
| A |
Yes.
But you must apply before age 60 and within two years of ceasing
insurable employment. |
|
Q.15 |
How
do my old contributions relate to the new contribution and benefit
structure? |
| A |
All contributions made before
March 01, 2004 have been
re-valued. See the Contribution and Benefit Tables for further
information.
|
|
Q.16 |
If
I work for 2 hours at $80 per week, are contributions payable?
|
| A |
Yes,
if you were employed or eligible to be registered in such employment
as at February 29,
2004 and continued
to be employed by the same employer on or after March 01, 2004. In
such a case, contributions are payable in Class 1. However, if you
were not employed or eligible to be registered before
March 01 2004,
then earnings under $100.00
per week would not insurable and contributions would not be required. |
|
Q.17 |
Where
a wife is employed by her husband, can National Insurance be paid on
her behalf? |
| A |
Yes.
With effect from May 3, 1999 a wife working for her husband must be
registered with the National Insurance System and contributions must
be remitted to the system on her behalf. |
|
Q.18 |
Can
I submit my employees’ data on diskette every month? |
| A |
Yes,
in the format prescribed by the Board. See NIBTT
News Page on Magnetic Media or contact 625 – 2177 Ext: 407/408
for more information. |
|
Q.19 |
When
do the interest and penalty be effective from? |
| A |
The
penalty was applied from the 16th day
following the month-end in which the contributions should
have been paid. Interest is added from the next month.
|
|
Q.20 |
Does
the board have any power of garnishment? |
| A |
Yes.
This power will be used to recover unpaid contributions and any
penalties or interest imposed. |
|
Q.21 |
Will
government and state departments be subjected to interest and
penalty impositions? |
| A |
Yes.
The act binds the state. |
|
Q.22 |
Why
has the board opted for 12 contribution classes instead of the
original 8? |
| A |
In
order to have an equitable distribution of contribution within the
range of earnings covered for National Insurance. |
|
Q.23 |
Can
the Board waive the penalty charge for late payment of
contributions? |
| A |
No.
The penalty cannot be waived for any reason if the payment is late.
The legislation gives no such power or discretion to the Board. |
