A person or body corporate, partnerships, companies or corporations with whom an employee has entered into a contract of service whereby such person or body corporate is liable to pay salary, wages or other payment for service performed by the employee.
Every new employer must register with the NIS within seven (7) days of employing the first employee. The employer must submit an Application for Registration as an Employer (Form R3) in order to obtain a registration number. In stating the “nature of business”, the employer should state the type of economic activity in which he/she is engaged. If there is more than one type of business activity, show only the major activity.
In the case of companies, employers should submit the memorandum of incorporation and articles of association.
At the end of every pay period contributions must be deducted from the employees’ wages/salary. Currently, the total rate of contribution is 10% of insurable earnings. Of this total rate, the employee pays 4.5% and the employer pays 5.5%. Insurable earnings will correspond to all earnings up to $51, 996.00 per year or $4,333 per month or $1000 per week.
The earnings of an employee on which contributions are payable include salaries/wages, as well as:
All employers are required to pay the NIS contributions within one (1) month after the end of the preceding month. If you employ 1-10 employees, then you are required to complete the “Turnaround Contribution Schedule” and submit with your payment.
Employers with more than 10 employees are required to submit the monthly remittance Form C2 and the “Turnaround Contribution Schedule” all with the payment. Persons who pay through the bank may bring an assessment instead of the remittance form.
All fields on the monthly schedule must be filled in before it is submitted to the NIS for payment. The contribution schedule must clearly show:
Payment may be made by post or in person at the NIS Offices in Kingstown and Union Island. All outstanding monthly turnaround schedules for the current year must be submitted by March 31st of the following year.
When an employer fails to pay the NIS contributions within the prescribed time, he/she is liable to pay a surcharge of 10% of the total contributions payable. For every month or part of a month that the contribution payment remains outstanding a further 1% compound interest is charged.
Where an employee works under the general control and management of a person other than his immediate employer, that person (principal employer) is regarded as the employer liable to pay the contributions. The immediate employer is expected to furnish the principal employer with particulars of the employees’ wages/salaries to enable the principal employer to comply with the provisions of the NIS Act and Regulations.
Employers can use our web-based software, eSubmit, instead of the monthly Turnaround Contribution Schedule. Most payroll software can produce file formats that can be processed by eSubmit. Details of this data format and tutorials for eSubmit can be obtained from NIS.
Our software (eSubmit+) is user-friendly and is available to employers who do not have a payroll system and who employ 1 to 100 employees.
Employers using their own payroll software can submit information via various media types (compact discs, USB flash drive etc.). They too can use the internet to submit the monthly contribution records.
Employers desirous of submitting their information electronically via the eSubmit+ software must apply to the NIS for permission to do so. you can sign up for eSubmit here.
NIS personnel are available to work along with employers to ensure that the process is clearly understood and to provide technical support for “eSubmit” users.
If an employer underpaid contributions, a notice is issued by the NIS requesting the employer to settle payment within one month.
Overpayments of contributions are credited to the employer’s account for the following month.
Refunds are granted at the end of the year when the NIS reconciliation process is completed. However, the employer must notify the NIS of any overpayments of a contribution was made during the year and request the refund. Both the employer and employee would be given a refund except in adverse circumstances.
The employer is required to submit the certified records of employees’ earnings (Form C1/1) and the Form C1A for each year by March 31st of the following year. New records will be issued to employers in respect of their employees for each year.
This document is issued for each employee and it clearly shows the employee’s:
It is important that each employee sees and signs this document in order to verify the information that is being presented before it is submitted to the NIS Office.
When an employee, who already has a registration card and in respect of whom a Form C1/1 has already been issued to a previous employer, becomes employed in another establishment, the new employer should obtain another Form C1/1from the NIS on behalf of that employee.
If an employee changes employment, his/her Form C1/1 should be returned to the NIS Office within seven (7) days of changing employer.
In cases where an employee’s service has been terminated during the year, that person’s record should be returned to the NIS Office within fourteen (14) days of cessation of the employment. The record should show the date on which employment ended; the employee’s last address and should be signed by the employee.
Records of employees’ earnings are valuable and hence, the employer should always keep them in a safe place. These records should not be defaced or in any way be tampered with. Loss or damage to records of employees’ earnings should be reported promptly to the National Insurance Office. Employers should remember that the records of employees’ earnings remain the property of the National Insurance Services.
Whenever a record is requested by the NIS Office, that employer should return the record to the Office promptly to facilitate the speedy processing of benefits claims among other things.
The employer is required to submit an End of Year (Form C1A) for the recently concluded year, in respect of all employees. This document presents the following information:
All information requested on this return must be given as fully and correctly as possible. Where an employer is a body corporate, society or another body of persons, the declaration and statement must be signed by an agent duly authorized to do so.
A Compliance Officer is an officer of the National Insurance Services appointed and designated by the National Insurance Board to carry out the task of ensuring that all persons comply with the National Insurance Act and Regulations.
The National Insurance Act 33 of 1986 Section 12(1) (CAP.296) gives a Compliance Officer the power to enter at all reasonable times any premises or place where he/she has reasonable cause to believe that persons are employed, and to make any examination or inquiry which is necessary for him to ascertain whether the provisions of the National Insurance Legislation are being complied with.
An employer or his agent upon request by a Compliance Officer must provide information on employees or persons who have been employed by him/her and produce all wage/salary sheets, contribution documents and any other records as requested by the Compliance Officer.
All Compliance Officers are issued a certificate of appointment by the National Insurance Board. Before entering any premises or place, they are expected to produce this certificate. Employers should examine a Compliance Officer’s Certificate of Appointment before delivering to them any records of the NIS or records of employees’ earnings.
Any person acting on behalf of the employer or his agent is expected to furnish the Compliance Officer the relevant information and documents as requested to carry out his/her functions.
All benefits are processed based on the wages/salaries submitted by the employer. As such, employers should facilitate their employees’ benefit claims by:
The National Insurance legislation places a considerable amount of responsibility on employers. This responsibility will be easily discharged if the following rules are adhered to: