Employers are entitled to deduct 5% of an employees earnings and match with their own portion of 5% up to the relevant contribution ceiling stipulated by law. If an employer does not deduct the 5% employee portion then he/she is mandated by law to pay the full 10% to the Social Security Office.
With each payment of contribution, the Employer must complete and submit a Contribution Certificate – Form CR-1. Employees correct names and social security numbers are the keys to successful processing of contributions.
Payment must be made by the last working day of the month following the month in which wages were paid.
Employers who fail to pay contributions on time must pay a surcharge of 5% and additional surcharge of 2% per month on outstanding amounts.
When an employee leaves the employ of his/her employer, then notification in writing of this should be promptly sent to the Social Security Office.
An Employer’s failure to pay contributions or to comply with any obligation imposed on him/her by the Regulations constitutes an offence and shall be liable on summary conviction to a fine of $1,000, and a fine of $250 for each day on which the offence is continued.