Collection Of Contribution

Social Security (Collection of Contributions) Regulations, 1973, dated 5^th day of March, 1973 made by the Minister under Sections 19, 21, 26 and 47 of the Social Security Act 1972. (3 of 1972).

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1. These Regulations may be cited as the Social Security Short Title and

(Collection of Contributions) Regulations, 1973 and shall commencement.

come into operation on the 2^nd day of April, 1973.

2. In these Regulation, unless the context otherwise requires- Interpretation.

Adeduction card@ means the card issued by the Board

for the purpose of the payment of contributions by

means of recording thereon the amounts of contributions

deducted from the employee and the sum liable to be

paid in respect of such employee by the employer; and

Atermination of employment@ means the day on which

the employment actually comes to an end, whether

such termination is in accordance with the terms of the

contract or not, and whether or not the employment is

to be resumed at a later date;

3. Any notice, application, card or other document which Notices, etc., may be sent by

authorised or required to be given, presented, issued or post.

delivered under these regulations may be sent by pre-paid post.

PART I

Payment of Contributions.

4. (1) In respect of each weekly or monthly period beginning on or Rates of Contributions.

after the appointed day, for which an employed person is paid

wages, the employer shall pay for such weekly or monthly

period a total contribution as set out in the Schedule hereto

in relation to the wages paid to the insured person during or

immediately after the end of that period:

Provided that-

(a) If the wages of an insured person are not fixed on

a time basis, the total amount of the wages paid

to him in or immediately after the specific period

for which contributions is to be paid may be taken

into account; and

(b) if the wages of an insured person are paid on a time

basis other than weekly or monthly, they shall be

converted to such basis by simple proportion, or in

such other way as the Director may determine;

(2) For the purpose of determining the wages of an employed person

under subregulation (1) there shall be included all gross earnings

received in cash by or on behalf of the insured person, including:-

(a) overtime payments;

(b) cost of living bonus;

(c) additional payments in respect of dependants;

(d) supplements for long service industry or efficiency;

(e) commission or profits on sales;

(f) gratuities paid by the employer;

(g) payments for night or shift work;

(h) production bonus;

(i) danger or dirty money or similar payments;

(j) service charges;

(k) any employee=s liabilities (including tax) paid on

his behalf by the employer; and

(l) holiday pay or other amounts set aside out of the

employed person=s remuneration throughout the

year or part of the year to be paid to him

periodically:

Provided that-

(1) in the case of payments specified under

sub-paragraphs (k) and (l) the amounts

paid or set aside shall be included in the

related wages for the appropriate period

for which contributions would have been

payable had the amounts not been so paid

or set aside; and

(ii) in the case of payments specified under

sub-paragraphs (a) to (j) inclusive the

amounts so received shall, if they are not

paid together with the wages for the period

for which they were due, be included in the

wages for the period in, or immediately

after which they are paid.

(3) With a view to securing the liability for the payment of contri-

butions is not avoided or reduced by an employer using any pay

practice which is abnormal for the employment, the Board,

whether or not an application has been made in that regard, may,

if it thinks fit, determine any question in relation to the payment

of contributions where any such practice has been or is being

followed in like manner as if the employer concerned had not

followed such abnormal practice but had followed a practice

normal for the employment in question.

5. There shall be liability for a contribution under section 19 (1) of Liability for contributions on

the Act- attaining ages 16 and 60.

(a) in case of employed persons attaining the age of

sixteen years, for the week in which the employed

person reaches the age; and

(b) in the case of employed persons attaining the age

of sixty years, for the week in which the employed

person reaches that age;

Provided that there shall be no liability by an employed person for

a contribution if he attains the age of sixty years on the Monday of

the week in question and is not employed subsequently.

6. (1) An employer liable to pay contributions on behalf of an employed Time of deduction of

person shall, except as hereinafter provided, deduct those contri- contributions.

butions before paying to the employed person the wages in

respect of the period for which contribution is payable.

(2) Where wages are paid in advance for any period the employer

shall deduct contributions in advance for that period before the

payment of the wages.

(3) In addition to any other requirements, the employer shall,

where the employment of an employed person is terminated,

pay all contributions due from the employer but still out-

standing in respect of any insured person within fourteen days

after the end of the month in which the employment is terminated.

(4) The Board may, if it thinks fit and subject to such terms and

conditions as it may impose, approve any arrangement whereby

contributions are paid at times and in a manner other than those

prescribed by these regulations; and any such arrangement may

include provision for the payment of such fees as may be

determined by the Board to represent the estimated additional

expense in administration to the Board.

(5) As a condition of authorising the payment of any contribution

on a later date than that upon which the contribution would,

apart from such authorisation, under subregulation (4), be due

to be paid, the Board may require the making of such deposit of

money by way of security as the Board approve,

(6) Subregulations (4) and (5) shall, subject to the provisions of any

such arrangement, apply to any person affected by such arrange-

ments; and any contravention of or failure to comply with any

requirement of any such arrangement shall be deemed to be a

contravention of or failure to comply with these regulations.

7. (1) Every employer on making any payment of emoluments during Authority to deduct

any year to any employee in respect of whom he holds a employee=s contribution

contribution card for that year may deduct contribution in from emoluments.

accordance with these regulations.

(2) An employer shall not be entitled to recover any contributions

paid by him or to be paid by him on behalf of any employee

otherwise than by deduction in accordance with these regulations.

8. (1) On the occasion of any payment of emoluments to the employee, Calculation of deductions.

the employer may deduct the amount of the contributions based

thereon which the employee is liable to pay under these regulations

from emoluments on making the payment in question:

Provided that when two or more payments of emoluments fall

to be aggregated the employer may deduct the amount of

contributions based thereon which are payable by the employee

either wholly from one said payment or partly from one and

partly from the other or any one or more of the others.

(2) If by reason of any error made in good faith the employer on

making any payment of emoluments to an employee fails to

deduct therefrom the full amount of contributions which he may

deduct, he may, after prior notification to the employee, recover

the amount so under-deducted by deduction from any subsequent

payment of emoluments to that employee during the same year:

Provided that-

(a) the amount that may be deducted from any pay-

ment or from any payment which falls to be

aggregated shall be in addition to but shall not

exceed the amount deductible therefrom under

other provisions of these regulations; and

(b) for the purpose of regulations 11 and 12 an

additional amount which may be deducted by

virtue of this paragraph shall be treated as an

amount deductible under these regulations only

in so far as the amount of the corresponding

under-deduction has been so treated.

(3) The employer shall record either on a deduction card or in such

other form as may be authorised by the Director the following

particulars regarding every payment of emoluments which he

makes to an employee, namely

(a) the date of the payment;

(b) the gross amount of the emoluments:

(c) the contributions which may deducted from the

emoluments otherwise than under subregulation

(2);

(d) the contributions which are payable by the

employer in respect of the emoluments additional

to the amount payable under sub-paragraph (c)

and in accordance with the Schedule hereto;

and

(e) the total of sub-paragraphs (c) and (d);

Provided that where two or more payments fall to be

aggregated, the employer, instead of recording the amount

of each contribution which may deducted from the emoluments

included in each payment, may record the total amount of the

contributions which may be deducted from those payments.

9. If the employer makes any payment of emoluments to an No deduction card held by

employee in respect of whom he does not hold a deduction employer.

card and the payment is a payment of emoluments in respect of

which contributions are payable, he may deduct the amount of

the contributions based thereon which are payable by the

employee and shall keep records on a deduction card which he

shall prepare for the purposes as if the payment was one to which

regulation 12 applied and shall do likewise on making any

subsequent payment of emoluments to the employee.

10. Where the employer makes a payment to or for the benefit of the Tax Free emoluments.

employee in respect of the employees income tax the amount of

the emoluments which the employer pays to the employee shall

be deemed for the purpose of these regulations to be such a sum

as will include the amount of the payment made by the employer

in respect of the employee=s income tax.

11.(1) Within fourteen days after the end of each month the employer Payment of contributions by

shall pay, by means acceptable to the Director, contributions an employer.

deducted by the employer under these regulations from

emoluments paid by him during such month (other than amount

deductible by virtue of regulation 8 (2), which he did not deduct),

together with the appropriate amount by way of employers

contributions:

Provided that the employer shall for the purpose of this sub-

regulation be deemed to have deducted from the last of any

number of payments of emoluments which fall to be aggregated

the amount of contributions deducted from theses payments

which he did not deduct from the earlier payment.

(2) The Director shall, if so requested, give the employer a receipt

for the total amount paid.

(3) If the employer, by reason of an error made in good faith,

has paid to the Director on account of contributions under

this regulation an amount which he was not liable so to pay,

the amount which he was liable so to pay subsequently in

respect of other payments of emoluments made by him

during the same year shall be reduced by the amount so

overpaid:

Provided that if there was a corresponding over-deduction

from any payment of emoluments to an employee, this sub-

regulation shall apply only in so far as the employer has

accounted to him therefor.

12.(1) If within fourteen days after the end of any month- Employer failing to pay

contributions.

(a) the employer has paid no amount of contri-

butions under regulation 11 to the Director

for that month, and the Director is unaware

of the amount, if any, which the employer is

liable so to pay; or

(b) the employer has tendered in payment an

amount which the Director has reasonable

cause to believe is less than the employer

is liable to pay in respect of such month,

the Director may give notice to the employer requiring him

to render, within the time limited in the notice being not less

than five days a written return showing the name of every

employee to whom he made any payment of emoluments in

the period from the preceeding first day of January to the

last day of the previous month together with the following

particulars regarding each such employee-

(a) every payment of emoluments made to him

during that period;

(b) the total amount of contribution which the

employer was entitled to deduct during the

period and which the employer is liable to

pay to him for that month;

(c) the total amount of contributions which was

payable by the employer in addition to the

amount deductible under sub-paragraph (b); and

(d) Such other details and information as will enable

the Director to ascertain the correctness or other-

wise of the amounts.

(2) The Director shall ascertain and certify the amount of contributions

which the employer is liable to pay him in respect of the month in

question.

(3) The production of the return made by the employer under sub-

regulation (1) and of the certificate of the Director under sub-

regulation (2) shall be good and sufficient evidence that the amount

shown in the said certificate is the amount of contributions which

the employer is liable to pay to the Director in respect of the month

in question; and any document purporting to be such a certificate

as aforesaid shall be deemed to be such a certificate until the

contrary is proved.

PART II

Miscellaneous.

13. Each employer shall maintain a record additional to that on a Records.

deduction card showing in respect of each person employed

by him-

(a) the dates on which the employment starts and

finishes; and

(b) the date and amount of each payment of

emoluments.

14.(1) Not later than fourteen days after the end of every year the Return by employer.

employer shall render to the Director in such form as the

Board may approve or prescribe a return in respect of each

employee containing such particulars as the Board may

require for the identification of the employee and showing-

(a) the total amount of contribution deductible

from the emoluments paid by him to the

employee during the year;

(b) the total amount of contributions payable

during the year by the employer in respect

of the employee in accordance with the

Schedule hereto.

(2) The said return shall be accompanied by a declaration and

statement in a form approved by the Board containing a list

of all deduction cards issued by the Director or prepared

by the employer in accordance with regulation 5 of the

Social Security (Registration of Employed Persons and S.R & O. 16/1972

Employers) Regulations, in respect of that year together

with a certificate showing:-

(a) the total amount of contributions deductible

by him in the case of each employee during

the year;

(b) the total amount of contributions payable to

him additional to the contribution in sub-

paragraph (a) in the case of each employee

during the year; and

(c) the total amount of contributions which he

was liable to pay to the Director under

Regulation 11 in respect of all of his employees.

(3) Where the employer is a body corporate the declaration and

the certificated referred to in subregulation (2) shall be signed

either by the Secretary or by a Director of the said body corporate.

(4) A return shall be made under this regulation in respect of every

employee in respect of whom a deduction card has been either

issued to the employer by the Director or prepared by the in

accordance with the Social Security (Registration of Employed

Persons and Employers) Regulation , 1972 or to whom the S.R & O. 16/1972.

employer has at any time during the year made a payment of

emolument in respect of which contributions were payable.

(5) If within fourteen days after the end of any year an employer

has failed to pay to the Director the total amount of contribu-

tions which he is liable so to pay, the Director may prepare

a certificate showing the amount of contributions remaining

unpaid for the year. The certificate of the Director that any

amount of contributions such as is mentioned in this sub-

regulation have not been paid to him, or, to the best of his

knowledge and belief, to any other person to whom it might

lawfully be paid shall be sufficient evidence in any court that

the sum mentioned in the certificate is unpaid and due to the

Board; and any document purporting to be such a certificate

shall be deemed in any court to be such a certificate until the

contrary is proved.

15.(1) Every employer whenever called upon to do so by an Inspector Inspection of employer=s

designated under Section 12 of the Act or other authorised records.

Officer of the Board shall produce to such Inspector or other

Officer for inspection at the employer=s premises-

(a) all wages sheets, deduction cards and other

documents and records whatsoever of the

emoluments of his employees in respect of the

years or months specified by such Inspector or

other Officer in relation to the deduction of

contributions deductible from such emoluments

or to the payment of the employer=s contributions

in respect of such emoluments or to the payment

of the employer=s contributions in respect of such

emolument; or

(b) such of the said wages sheets, deduction cards or

other documents and records as may be specified

by the Inspector or other authorised Officer.

(2) The Director by reference to the information obtained from

inspection of the documents and records produced under sub-

regulation (1) may on the occasion of each inspection prepare a

certificate setting out-

(a) the amount of contributions which it appears from

the documents so produced that the employer is

liable to pay to the Director for the said years or

months; and

(b) any amount of contributions which have not been

paid to him or, to the best of his knowledge and

belief, to any person to whom it might lawfully

be paid.

(3) The production of a certificate such as is mentioned in sub-

regulation (2) shall be sufficient evidence in any court that the

employer is liable to pay to the Director in respect of the years

or months mentioned in the certificate the amount shown therein

pursuant to subregulation (2) (b) and any document purporting

to be such a certificate shall be deemed in any court to be such

a certificate until the contrary is proved.

16. If an employer dies, anything which he would have been liable Death of employer.

to do under these Regulations shall be done by his personal

representative; in the event of the death of an employer who

paid emoluments on behalf of another person, the said things

shall be done by the person succeeding him or, if no person

succeeds him, by the person on whose behalf he had paid

emoluments.

17.(1) This regulation applies where there has been a change in the Succession to a business etc.

employer from whom an employee receives emoluments in

respect of his employment in any trade, business, concern or

undertaking or in connection with any property, or from

whom an employee receives any annuity other than a pension.

(2) Where this regulation applies in relation to any matter arising

after a change of employer, the employer after the change

shall be liable to do anything which the employer before the

change would have been liable to do under these Regulations

if the change had not taken place:

Provided that the employer after the change shall not be liable

for the payment of any contributions which were deductible

from emoluments paid to the employee before, unless they

were also deductible from emoluments paid to the employer

after the change took place or of any corresponding employer=s

contributions.

18.(1) If an employer fails to pay any monies due under regulation 11 Penalties

within the time prescribed, those monies shall be subject to a

surcharge of ten per cent, and this surcharge shall be without

prejudice to any other penalties to which such employer may

be liable under paragraph (2).

(2) If any person fails to comply with any of these Regulations he

shall be guilty of an offence and liable to a fine of one hundred

dollars and where the offence is a continuing one after convic-

tion thereof to a time of one hundred dollars together with a

further one hundred dollars for each day on which it is so

continued.

Rates Of Contributions Schedule Part 1 Part 11 Part 111 Part 1V

Schedule (Regulation 4)

Rates of Contributions

Part 1

Employed Persons.

Description of Employed persons.

Rate of Contributions

Employees under the age of 16

Nil

Employees between the ages of 16 & 60 years.

At the weekly or monthly rates shown in column I of Part IV respectively.

Employees who have attained the age of 60 years.

Nil

Part II

Employers.

Description of employed persons.

Rate of Contributions.

Employees under the age of 16 years.

Nil

Employees who have attained the age of 16 years

At the weekly or monthly rates shown in column 2 of Part 111 or column 2 of Part IV respectively.