Employer
The Social Security (Registration of Employers) Regulation defines an employer as: “A person, (natural or legal) who engages another person in Insurable Employment.”
The Social Security Act defines the term “Insurable Employment” as: “Employment in Montserrat under any contract of service or apprenticeship, written or oral, and whether expressed or implied.” Therefore, an employer is a person or organization who engages another person in some form of employment in which he exercises absolute control over that employee.
The Social Security Act provides that every employee between the ages of 16 and the Pensionable Age, who commences employment, must be registered with the MSSF within four days of commencement of employment.
Registration
The Social Security Act provides that within 7 days of employing his first employee, an employer shall complete and submit to the Director, an Employer Registration form
Where the employer is a registered Company, the employer shall present a copy of the following documents for Registration:
- The Certificate of Incorporation
- The Articles of Association
- The Notice of Registered Office
Where the employer is operating under a Business Name, the official Documents for Registration stating the following must be presented:
- The Business Name
- The general nature of the business
- The principal place of the business
- The name(s) of the person(s) carrying on the business
Where the business is a Partnership, the Employer Registration form must be signed by all the Partners.
Upon registration the employer will be issued with an Employer Registration Certificate stating his name and Registration Number. We wish to advise that the Number be kept handy when making any enquiries to our office.
Obligations
- The employer MUST ensure that every person in his employ is duly registered, and produces his Social Security as proof of registration.
- If a registered employee fails to produce his card to his employer, it is the responsibility of the employer to take all necessary steps to ensure that the employee immediately obtains it. If an employer employs a person who has not been previously registered, he must take steps to ensure that the person is registered.
- The continued employment or engagement of an unregistered employee constitutes an offence, which, on summary conviction, will result in a fine.
- Every employer is required to keep business records of the start date of employment for each employee, their full name and Social Security number, the wages paid to them, the date on which such wages were paid etc.
- If the employer fails to deduct the employee’s component of the contributions deductible, he then becomes personally liable for the payment of the total amount due.
- Contribution payments must be accompanied by a completed Contribution Remittance Form listing the particulars of the employees in respect of whom the contributions are being paid. Electronic versions of this form can be downloaded from this site.
- It is the employer’s responsibility to inform the Montserrat Social Security Fund of any change in his address, or if he ceases to be an employer.
- Every employer must grant access to the Social Security Inspectors conducting their inspections/investigations for the purpose of the Act.
Contributions
As of 1st. January 2023 the rates of employee contributions are calculated as percentage deductions of salary where the Employee contributes 5.5% and the Employer 6.5%.