BASSETERRE St. Kitts, December 5th, 2014 -- The Social Security Board has received notification regarding the recent change to the deduction threshold in respect of the Housing and Social Development Levy. The change has been brought about by way of the Housing and Social Development Levy (Amendment) Act 2014 No. 16 of 2014 which provides for the upgrade of the threshold from $16,640.00 per annum to $18,720.00 per annum.
In light of this change, the Social Security Board will be taking the opportunity from henceforth to treat contribution payments from
employers in a manner in keeping with the monthly amount of $1,560.00. This approach is being adopted to foster compatibility with
Social Security's monthly reporting system.
Accordingly, employers are being advised to no longer apply the threshold to wages paid for payment periods other than monthly. Hence within any particular month, employers will be entitled to make the determination regarding exemption, based on earnings for an entire month only, with the threshold being $1,560.00 per month.
In that regard, in cases where payment periods are weekly, fortnightly, or every half month, the approach should be to apply a system of deductions in all cases. At the end of each month, the employer would then be obliged to refund deducted contributions to any employee who does not cross the monthly threshold. In a case where an employer can anticipate that the employee will not cross the threshold in any particular month (say, because of known fixed low level wages) such employer can elect not to make the levy deduction from the weekly pay packet.
Consequently, in submitting the normal monthly report to Social Security, the employer would simply reflect the position as regards the monthly threshold. Hence no contribution would need to be submitted to Social Security on behalf of the person who has not crossed the monthly threshold of $1,560.00. Conversely, the relevant contribution will be payable to Social Security on behalf of the person who has crossed the monthly threshold of $1,560.00.
The Board solicits the cooperation of all concerned as it seeks to better manage the collection of the levy, while yet facilitating the desired relief being made available to persons of lower incomes. Interested persons are hereby encouraged to contact our offices in Basseterre and Charlestown for any clarification.
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