Dionne Rose, Staff Reporter
THE MINISTRY of Labour and Social Security has threatened to haul before the courts companies that refuse to pay over National Insurance Scheme (NIS) contributions made by employees.
Gerrard McDaniel, public relations manager in the ministry, told The Gleaner that the ministry would be getting tough early next year on companies in arrears.
"We are believing and hoping that people will comply and do the right thing because it is a contributing scheme with workers sacrificing each month with the hope that it will help in their twilight years," he said.
Mr. McDaniel stressed that this was an illegal act and that it was also immoral when companies failed to pay over these funds to the Government.
He said the ministry would be launching a public education campaign to inform the public about the importance of handing over these contributions.
"We are trying moral suasion but we will also be going the hard way."
Mr. McDaniel said that non-compliance was a perennial problem. Under the law, monthly payments should be paid to the Inland Revenue Department within 14 days of the end of each month.
Employers are also required to submit annual returns with remittance showing total payments, deduction cards outlining details of each person's contribution, summary sheets, employees' Annual Return Declaration and Certificate (C4 and C4A) within 14 days of the calendar year.
CONTRIBUTION-FUNDED SCHEME
NIS is a compulsory contribution-funded social security scheme. It covers all employed persons in Jamaica and offers some financial protection to the worker and his/her family against loss of income arising from injury on the job, sickness, old age or death of the bread winner.
The benefits provided under the NIS are: retirement, invalidity, widow's/widower's pension, orphans and special child, employment injury, employment injury disablement, employment injury death, maternity, special anniversary death and funeral grant.
Check on your NIS
To ensure that contributions are paid over, employees should:
Register under the scheme on reaching age 18.
Ensure that his/her NIS number and name are correctly written on all NIS documents at the workplace.
Request of the employer, the NIS deduction card (C2) at least twice per year for inspection.
Check on contribution record at NIS office at least once per year.
Request a leaving certificate (Form C5) upon leaving job.
Request of the employer, the certificate (C7) showing NIS contributions deducted during the year.
