Payments

The payment of National Insurance contributions is compulsory for employees and unpaid apprentices who are registered or eligible to be registered under the system.

Your contributions are payable in Cash, Certified Cheque or Manager’s Cheque at the Service Centre in your district. Personal Cheques (including company cheques) will be accepted up to the Limit of a Valid Bank Card. Payment must be submitted with the relevant forms.

Payments can also be made via the Internet Banking Platform of the respective commercial banks. Click here for more information

The NIBTT will accept payment in advance. This may occur in cases where persons receive salary in advance, e.g. when they go on vacation leave. To do so complete in duplicate one NI 187 form for the entire period.

Where you reduce an employee’s pay because of suspension, etc., and his pay has been reinstated, that employee has to be treated as if he did not lose earnings.

You must therefore make adjustment payments to cover any underpayment of contributions.

Where there is a retroactive increase in earnings, e.g., salary, overtime, bonus, the adjustment of contribution class should be made only from the week/fortnight/month in which the increase was paid.

Where employment is regulated so that an employee works a minimum number of days in a period, and the employee is paid as for the whole period, he/she may be considered to have worked for that whole period, and more than one contribution must be paid.

For example, if the employee is given five days work per fortnight, and is paid by the fortnight, then two contributions must be paid. The employee’s fortnightly wage would be divided between the two weeks to determine the relevant Earnings Class.

Where an employee has multiple employment all employers must pay contributions on behalf of the employee. With effect from March 1st 2004 the law states: –

“Where an employee is employed by more than one person or where his earnings are paid jointly by more than one person during any contribution year in which a contribution is payable or where such employee works under the control and management of some person other than his immediate employer, the NIBTT shall total all contributions paid for the employee in that year and place the employee in the highest earnings class that such total contributions would permit for the number of weeks worked.”

Employers are required to issue their employee with a Termination Certificate within thirty (30) days of termination of employment. This certificate contains the following information.`   

  • The employee’s total insurable earnings for the contribution year.
  • The total amount of contributions deducted from those wages.
  • The total amount of contributions paid to the NIBTT.
  • The number of contribution weeks covered by those contributions.
     

The employer must forward a copy of this certificate to the NIBTT on the same day it is issued to the employee. Failure to issue the certificate to the employee or failure to forward a copy of the certificate to the NIBTT attracts a fine of $4,000.00 and imprisonment for 6 months on summary conviction.

Where Contributions are outstanding for insured persons and the NIBTT believes that a person whether an employer or not is indebted to the NIBTT or liable to make a payment to anyone who is indebted to the NIBTT for unpaid National Insurance contributions (including penalties and interest) the Executive Director of the NIBTT may deliver a demand for payment to the first person (the payer) who must pay the demand to the NIBTT.

Every person who receives such a demand for payment shall (must) pay the NIBTT at the same time as he would have paid the person who is indebted to the NIBTT.

Where the person receiving a demand for payment is the employer of the person indebted to the NIBTT for outstanding contributions the amount demanded for each pay period, being an amount not exceeding one third of the sum payable to the employee during that period must be paid to the National Insurance Board.

Failure to comply with a demand for payment makes the person receiving such a demand fully liable for the liability which he should have discharged.

The employer’s share of the contributions that is paid on behalf of their employees is considered an operating expense and is tax deductible in its entirety. The employee claims 70% of his share of the contribution as a tax relief.

NO CORRECT INFO ON CURRENT SITE

A contribution is a weekly payment fixed in relation to the wages/salaries of the insured person. Salaries and wages are structured into 16 earnings classes each of which carries an assumed average weekly earning.

With effect from March 03, 2014, Contribution Rates have increased from 11.7 percent to 12 percent of the assumed average weekly earnings as shown in the Earnings Classes and Contributions based on 12% contribution rate.

With effect from March 03, 2014 the income ceiling of $10,000.00 per month has been increased to $12,000.00 per month in order to maintain the real value of insured income.

Payment of the contribution is shared between the employer and employee in the ratio of approximately 2:1 in accordance to the rate set out in the Act. The employer is statutorily obligated to deduct the employee’s share no later than on the date of payment of salaries/wages.

NOTE:
Employers must remember that contributions for all employees (including paid apprentices, domestics and casual agricultural workers ) and unpaid apprentices, are due from the start of their employment, apprenticeship or probationary period.

Notwithstanding the cost sharing described, the EMPLOYER is responsible for remitting the total contribution to the NIBTT.

Any employer who fails to pay any contributions, or deducts part of the employer’s contribution from the employee’s wages, or contravenes any other requirement of the law, commits an offence and can be prosecuted and fined.

In addition, the employer is obligated to maintain pay records for each of his employees including the unpaid apprentice and domestic. Such records must include the following particulars of each employee:

  • Full name National Insurance
  • Number Salary/wages and the period to which such salary/wage relates.
  • The value of the contribution paid for each week of the period to which the salary/wage relates
  • The total contribution paid for the period to which the salary/wage relates
     

Contravention of this requirement may attract a fine of $4,000.00 and 6 months imprisonment upon summary conviction.

If you have an employee who is in insurable employment, (See “Which Employees Must Be Registered“), and that employee is required to work abroad for you, then, providing that:

  • The employee is ordinarily resident in Trinidad and Tobago; and
  • You maintain a place of business in Trinidad and Tobago


Contributions must be paid for the employee at the normal rates during the period that he/she is working abroad.

The following are instances in which no deductions are made from the employees wages/salaries and in which the employer only, pays a contribution:

  • Employees under 16  and over 65 years.
  • Employees aged 60 years to under 65 years who have retired, and have started to receive their Retirement Benefit and subsequently returned to work.

Contribution payable by an employer in respect of employment injury coverage for an employed person who has not yet attained the age of 16 years, or age 60 years to 65 years and in receipt of Retirement Benefit and has subsequently returned to work, or who has attained the age of 65 years, shall be as set out in Class Z and for an unpaid apprentice shall be $1.00 per week

No National Insurance contributions are due while your employees are receiving the short term benefits from the NIBTT i.e. Sickness, Maternity or Injury Benefit.  The contributions due over these benefit periods are met by the National Insurance Board.

Pursuant to Section 39.A of the National Insurance Act, an employer holds in trust for the NIBTT the total value of contributions due.

These contributions must be kept separate and apart from the assets of the employer and must not be subject to attachment in respect of any of the employers debts or liabilities and must form no part of the assets of the employer in the event of liquidation, assignment or bankruptcy of the employer or his business.

Contributions are due in respect of each week or part of a week that an employee works with an employer. This includes periods of apprenticeship, probation or try-outs.

Where salaries are paid in respect of a fortnight or calendar month, the number of contributions due are based on the number of Mondays in the said fortnight or month.

Contributions are to be deducted no later than when the payment of such earnings is made.

Contributions for a month must be paid on or before the last day of the month. However, there is a grace period up to the 15th day of the following month.

Your contributions are payable in Cash, Certified Cheque or Manager’s Cheque at the Service Centre in your district.

Uncertified cheques will be accepted, however, if your cheque is dishonoured the NIBTT reserves the right to withdraw the facility.

All sums due and owing to the NIBTT must be paid to the cashier at the NIBTT Service Centre. *****What about the new online payment facility*****

NOTE: Employers must remember that contributions for all employees (including paid apprentices, domestics and casual agricultural workers) and unpaid apprentices, are due from the start of their employment, apprenticeship or probationary period.

The form/s submitted to the NIBTT Service Centre will constitute evidence of contributions paid or payable.  You must ensure that you obtain an official receipt and stamped copy of the form/s submitted.

Payments deposited into the Drop box after 3:00 p.m. will be processed as if they had been received the next business day.

Please note that such payments will attract penalty and interest in accordance with Section 39B of the NI Act under the following circumstance:

  • a penalty of twenty-five per cent of the outstanding sum; and
  • interest on the entire sum (penalty and outstanding sum at the rate of fifteen per cent per annum from the sixteenth day of the following month until payment).

Employers are to submit completed employee contribution data either on electronic media or on the NI 184 together with NI187 Form.  These forms are to be completed in duplicate when payment is made. 

Where employers do not have the National Insurance Number for a new employee, the employee’s name, date of birth, and start date of employment should be inserted on the NI184 Form.  They must also submit a completed NI4 Form for each such employee.

The Service Centre will process these NI Forms and provide the employer with the National Insurance Numbers.

NOTE: Electronic Media:
Contribution details may also be submitted to the Board
via Compact Disk or Diskette.  For further information, please contact our
Records Department at Telephone Number (868)625-2171/8 Ext:2406
or Fax (868)622-2006.

Every individual making national insurance contributions should ensure their contributions are up to date.  This can be done by filling out and submitting the NI183   – Request for Contributions Statement Form to the nearest service centre. 

In addition, the NI165 form should be filled out to facilitate the updating of your personal information.

Statements are generated for distribution within one day.  However, should a request for alternative evidence be made by the National Insurance Board, a longer waiting period is expected before an updated statement is generated.

Requests for Contribution Statements can also be made online. Click here for more information

Contribution Classes and Rates Page <- A link to Classes/Rates Page Page

Voluntary Insurance is a provision which allows an insured person who is no longer employed, to maintain a contribution record during periods of unemployment.  A certificate of Voluntary Insurance is issued to the successful applicant.

Retirement Benefit

Survivors Benefit

Funeral Grant

An Insured person who is unemployed and between the ages of sixteen (16) to sixty(60) may apply to contribute voluntarily.  This does not include persons who have never been engaged in insurable employment under section 29(2) of the National Insurance Act.

The insured persons must apply for the certificate within eighteen (18) months of the date of cessation of insurable employment.

You must complete the prescribed application form NI6 and submit it together with your birth certificate and statutory declaration (where necessary) to the Service Centre.

A Voluntary Insurance Card and certificate will be issued to the successful applicant.

See Table – Rates of Voluntary National Insurance payable from January 4, 2010.

The average rate of the contribution period, during the two years prior to the date of cessation of employment is determined.  The earnings class to which this average belongs is the earnings class in which Voluntary Insurance will be paid.

These contributions can be paid for all periods of unemployment where the contributor is still unemployed.  At age 60 years he may opt to continue paying these contributions until age sixty-five(65).

The Insured person must pay Voluntary Insurance Contributions to the Customer Service Representative at the Board’s Service Centres only.

Payments are due monthly or quarterly, but no later than December 31st of the year for which contributions are due.

Failure to pay contributions at the due date and time may result in the cancellation of the Certificate of Voluntary Insurance.

When payments are being made, the insured person must present the Voluntary Insurance card to the Customer Service Representative, where it will be updated, the payment received and the receipt issued.

Non-Payment of Contributions

Where payment is not made by the 15th of the month following the month for which contributions are due a penalty equivalent to 25% of the sum due will be charged to the employer. e.g. contributions due for the month of June 2010 must be paid by July 15th 2010. Payment after this date will attract the penalty of 25%.

How will penalties be applied?

If contributions due for any month are not paid by the 15th of the following month a 25% penalty will apply from the 16th. If contributions totaling $1000.00 are due for January 2010 have not been paid by February 15th 2010  a penalty of 25% will apply from February 16, 2010. Therefore, contributions and penalties totaling $1250.00 will be due from February 16, 2010.

Example:  $1,000.00 + 25% = $1,250.00 of which $250.00 is the penalty due from July 16, 2010. 

When will interest apply?

If contributions and penalties have not been paid by the 15th of the second month, 15% interest will apply on the total sum.  Using the above example, if contributions and penalties totaling $1250.00 have not been paid by March 15, 2010 an interest rate of 15% (pro-rated) will apply from March 16, 2010 until the sum is paid.

How will interest be calculated?

Interest is calculated as follows:

Total of contributions and penalties X 15 X # of days total sum remained unpaid after the 15th of the second month divided by 36500.

Using the above example, if payments are made on March 20, 2010, interest will be calculated as follows:

(1250 X 15 X 5) = 2.57
36500 Interest of $2.57 must therefore be added to contributions and penalties ($1250.00) for a total remittance of $1252.57.

Effective January 7th 2008, a penalty of 100% will be applied to  contributions, penalties and interest  due for any periods of five (5) years and over on the total sum as the penalty.

Non-Submission of Contribution data/Submission of Incomplete or Incorrect Data

Contribution data is due on the last day of the month for which contributions are payable. A penalty of $1,000.00 will be charged to the employer who fails to submit contribution data by the 15th of the following month and $20.00 per day from the 16th of the month until submission.

A penalty of up to $1,000.00 will also be imposed for inaccurate/incomplete submission of data.

Outstanding contributions include any amount payable by an employer as a contribution under the Act and deducted or due to be deducted from an employee’s wages or remuneration in accordance with the National Insurance Act.

When Are Contributions Due?

Contributions are due in respect of each week or part of a week that an employee works with an employer. This includes periods of apprenticeship, probation or try-outs.

Where salaries are paid in respect of a fortnight or calendar month, the numbers of contributions due are based on the number of Mondays in the said fortnight or month.

Contributions are to be deducted no later than when the payment of such earnings is made.

Contributions for a month must be paid on or before the last day of the month. However, there is a grace period up to the 15th day of the following month.

Employers must remember that contributions for all employees (including paid apprentices, domestics and casual agricultural workers ) and unpaid apprentices, are due from the start of their employment, apprenticeship or probationary period.

What are Earnings

For National Insurance purposes, earnings include more than the basic wage or salary. Earnings also include: –

  • Acting allowances.
  • Overtime payments.
  • Stipends.
  • Housing Allowance.
  • Cost of Living Allowances.
  • Commission on sales.
  • Production or efficiency bonuses.
  • Danger or dirt money.
  • Payments for standby duty.
  • Allowances for dependents.
     

Therefore these should all be included in determining the earnings class of the employee for the particular pay period.

What Are Not Earnings

The following payments should not be treated as earnings:

  • Pensions for past services.
  • Severance benefits.
  • Payments under private health insurance plans.
  • Dividends from investments.

Only the first $2,308.00 per week or $10,000.00 per month of the employee’s earnings is insured under the National Insurance System.  This means that even if a person’s salary is more than that amount the first $10,000.00 is insured.

NOTE: With effect from March 4, 2013 the income ceiling of $8,300.00 per month was increased to $10,000.00 per month in order to maintain the real value of insured income.

Payment Forms

National Insurance Forms that you will need as an employer and employed person:

NI 1 Application to Register as an Employer (To be completed within 14 days of hiring your first employee)

NI 4 Application to Register as an Employed Person (Give this to all employees who are working for the first time)

NI 182 Change of Particulars of the Insured Person

NI 184 Particulars of Contributions Due

NI 187 Summary of Contributions Due/In Arrears

Use of National Insurance Forms
Whenever  you perform National Insurance functions under the National Insurance Act or Regulations, you must accurately complete the specific National Insurance forms that are designed so that you can give all the information required.

All of these forms are available FREE of charge at any National Insurance Service Centre or are downloadable.

If you have any difficulty in understanding your role and function with respect to National Insurance, you should visit the most convenient National Insurance Service Centre, where the Manager and staff will be pleased to assist you.   In addition, an Authorised Officer will be pleased to provide you with further explanations or assistance upon request.

You may also request a free educational seminar for your employees, through the Corporate Communications Department, via email at seminars@nibtt.net

Contact the NIBTT Hot-line: 625-4NIS (625-4647) or e-mail us at customercare@NIBTT.net