By Shanique Richards
St. Kitts Reporter
Officials at the Social Security Department are advising employees to verify that the monies deducted from their wages as federal tax are actually being paid to the agency on their behalf.
Chesil Hamilton, Public Relations Officer of the St. Kitts & Nevis Social Security Board, told The Observer that in the case where someone is employed and the Social Security contribution is being deducted but not paid, then the employer is at fault.
He said there are some employers who deduct the Social Security contribution from workers’ salaries but keep the monies. An act, he said, which in most cases was willful and not based on ignorance of the system
“Social Security provides as much information as possible for employees as well as employers. Employers are fully aware of their obligation to pay, which is part of our compliance measures. We have also repeatedly advised employees that if they are uncertain or have any doubt that their contributions are being paid, then they can come in and provide us with the relevant information. This will now put us now in a position to check and find out whether or not it is being paid,” he said.
The tax official said that unfortunately, most employees only become aware of the nonpayment of their contributions when they make sickness or maternity claims, only to be told that no monies were available as the tax was not being paid.
“When an individual comes in to claim benefits and we had no information that the person was employed and the employer failed to report this then we are now in the position to follow up and see what the particulars are.”
Contrary to some rumours, Hamilton said that once the matter was investigated and it was found that the person was indeed employed, then by law the agency is mandated to pay the person their benefits.
“The person is not supposed to lose their benefits because of their employer’s failure to pay the contributions on time or at all. We also have a mandate to go after the employer. The law states that Social Security can sue the employer for the actual amount of the benefits that the person is entitled to and still sue for the contributions they have not paid.”
Hamilton explained that the agency has a group of inspectors who investigate situations like these, but who also conduct spot checks to businesses a few times per year. He said if the matter of non-payment is drawn to their attention by an employee’s report, then the inspectors examine that specific employer’s records more closely.
“If the accusation is found to be true, the inspector will create a liability statement for that employer. By law, the employer is given a thirty-day grace period to pay their contributions. However, once the grace period is exceeded, then the employer is now in arrears and we have the option to take legal action in the court. We normally take civil action by first getting a judgement from the court acknowledging the debt. Then if the employer fails to pay by a certain time, we will then petition the court to get an order indicating when the person will have to pay.”
Hamilton said that the process followed attempts to give the employer enough time to pay the owed contribution by giving them sufficient chances to pay the debt, requesting payment sometimes up to twenty times before taking legal action.
“Social Security will make at least twenty demands and if the matter is not settled privately then it will be brought before the court. We then have to prove to the court that demands for payment were made. The court would then issue a debt of summons to the employer, they will have a chance to say why payment was not made then the court will give them a deadline by which the amount owed has to be paid,” he said.
If payment is not made by the deadline, Hamilton said that Social Security can petition the court to execute a judgement, which in most cases is a two week imprisonment but can also be imprisonment until the money is paid.
Hamilton also made it clear that individuals could not be victimized for reporting the fault and that the labour laws are on their side if this occurs.
“If the person chooses to be brave and come forward and the employer penalizes them, as long as they have enough information to substantiate such a claim, the aggrieved person can take that matter to the Labour Department.
