An employer is a person or corporate body with whom an employee has entered into a contract of service or apprenticeship expressed or implied whereby such a person or corporate body is liable to pay salary, wages or other remuneration for services performed by the employee.
All employers must register with the NIS and pay contributions on behalf of their employee(s). An employer must ensure that every employee is registered with the NIS within four days of commencing employment. The employer’s contribution is 6.5% of the employee’s insurable earnings (5.5% must be deducted from the employee’s salary). The maximum insurable earnings on which contributions are payable are: $5,000 per month / $1,160 per week.
Employers are required to pay 1% of insurable earnings for employees under the age of 16 and over the age of 60.
The following are taken into consideration for the purpose or determining the earnings of an employee;
Every Employer is required to submit the insurable earnings of their employees via e-mail to email@example.com using NIS electronic remittance form. The remittance form must clearly show:
The total 12% contribution payment must be remitted to the NIS at the end of each month. The National Insurance Laws allow for a grace period of 14 days from the end of the month within which contributions must be paid. Employers failing to do so will be charged a 10% surcharge and an additional 1% interest for every month or part of a month that the contribution payment remains outstanding.