A few Wednesdays ago I went to the Magistrate Court, District A. I went to give moral support to the Compliance Department and because three employers were being prosecuted for non payment of Social Security contributions. Let me be precise. Employers were being prosecuted for deducting 5% from employees’ wages and failing to pay that and their matching 5% plus the 1% for employment injury into the appropriate authorities. Some employers under-reported what they were paying their employees while others just flat out did not pay. An amount of $13,625.00 was at stake in contributions alone, plus amounts due for levy and severance payment.
These employers were not the only ones in trouble, and this was not the first time they were in trouble with Social Security. They were repeat offenders. There were others, too, who had settled and so those matters were withdrawn and one who had already been sentenced – given four months to pay the almost $12,000.00 he owed or spend 14 days in prison and then pay the money. Going to jail in this case does not absolve the debt; it still has to be paid. Another eight have been sued to supply information and they may have to appear before the magistrate very soon.
All of the employers took the stand and sang out of tune. They were discordant, just making noise. Some didn’t appear to realize what they were doing to themselves, their employees and their businesses.
The process was tedious, broken down into small steps as legal matters have to be. “State your name and address for the record”. “How would you recognize such and such a document?” “Is that the document that you have in your hand?” “I seek leave to have it entered in evidence”. “Do you have any objections?” This was followed by an adjournment for God to save the Queen. I took a bathroom break.
It was lengthy. It must have been counterproductive to the employers who spend time in Court arguing when they could be involved in income generating activities. Cell phones, the business man’s lifeline had to be turned off. I dare say a lot of business was lost. I know a lot of money was lost because time is money. In addition, each non-payment attracts fines of 5% per month. That alone should deter anyone from messing with Social Security. But it doesn’t; not when you learn that already for 2008, 52 employers have had to be prosecuted.
Maybe some of these employers really didn’t have anything going on for some of the periods for which they were sued. But they have an opportunity, nay, an obligation to file a NIL return when such is the case. Mind you, if they fraudulently file a Nil return, they would still be in trouble.
In our town hall meetings, we are frequently asked about those persons who owe and how much they owe. The truth is that in our context, most employers have been very good and compliance is hardly lower than 85% at any given time. But there are a few employers who are habitual and we appeal to them to stop it. It is counter-productive to everyone and it hurts several people. It hurts the employee, the families of the employee, the society and eventually it will hurt your business too, when good help becomes harder to find. “Advantage never pay.”
Social Security has about EC$2 million out there, in arrears, to collect and every bit counts, especially now that we are all being asked to tighten our belts even more. We are doing all we can to encourage, to coerce, to force employers to pay up. You, the employee can help by encouraging your employer to comply; and by checking with Social Security to ensure that your money is being deducted every week/month and that reaches us at Social Security in a timely manner. Just ask for a copy of your contribution summary at our Benefits Department. The summary will show your weeks worked each year, actual wages paid and the number of credits accumulated. You will need at least 500 credits (or 10 years of work) to qualify for a pension. And while at it, make use of our Pension calculator to find out what your pension is likely to be.
So come, let us sing. One song. A good song. In harmony. In rhythm. Pay to Social Security what is due to Social Security. It’s for your benefit!
Join us next Wednesday, April 23rd at the Keys and Newtown Community Centers in St Kitts and at the Hickmans and Hanleys Road Community Centers, in Nevis for more discussions about Social Security Reform. Write to us at ssb.reform@socialsecurity.kn or P.O. Box 79, Basseterre. Or come into our offices at Bay Road, St Kitts; and Chapel Street, Nevis. Tel 465 2535 or 469 5245.
All of the defendants lost. Social Security triumphed. Again. Because you deserve a future!
