A financial planner is calling on all employers who have been not paying National Insurance System (NIS) contributions on behalf of their employees to stop the unscrupulous act immediately.
Nigel Gardner, managing director of NAG Insurance and Financial Services, incorporated, by Guardian Group, in an email interview wrote, “ Further if they (employer) deduct money from the employee but fail to pay that amount plus their twice amount to NIBTT (National Insurance Board of T&T), that is an offence which carries a fine plus a jail sentence.”
Gardner made the statement in response to Prime Minister Dr Keith Rowley’s, reference to employers hiring people during the pandemic but not reporting the existence of those people to the NIB.
Rowley who made the statement at his July 10 press conference, noted the revelation of this kind of corruption came with the Government’s salary relief grant for registered workers who were now on the breadline as a result of either down-sized businesses or company closures.
He said the grant, which is administrated through the NIB revealed not only an un-listing of some workers accessing the grant but also affirmed instances where employers failed to disclose their employees to the NIBTT.
Gardner said this “discovery” was nothing new as he had several clients over the years with this experience, come to him to seek help. He explained the course of action that should be taken.
“If the employee suspects that this is the case, they can make a confidential report to the NIB who will do a private investigation into the matter. If contributions are not being made by the employer even after the employee has been deducted his / her contribution, then it is the right of the employee to seek redress and find out if the employer is making payments on their behalf. If it is found out that the employer has not been paying on the employee’s behalf, and found guilty, in conjunction with the fine for the offence and jail time, the employer is also required to pay all of the outstanding contributions that should have been made on behalf of the employee from the date that it’s proven contributions had stopped being paid or withheld.”
The issue is ongoing as in 2020; a Guardian report noted the current statistics at that time, “The Annual Reports of NIB showed that in 2018 employers were in arrears of over $437 million. In 2017 employers’ arrears amounted to $565 million and $383 million in 2016.
When contacted since July 13, for a listing of employers committing the act and to get an update on the figures of outstanding contributions, NIB’s executive director Niala Persad-Poliah responded yesterday via WhatsApp stating that she was on ‘compassionate leave’ from office.
She asked that Guardian Media contact NIB’s manager of corporate communications, Tricia Clarke, who when contacted, said via WhatsApp, “I am in receipt of your messages and will reach out to you accordingly.”
Guardian Media reached out to Minister of Labour, Stephen Mc Clashie, who is yet to respond.
We also contacted Minister in the Ministry of Finance Brian Manning, to find out if the Ministry of Finance was in a position to relay the generality of this occurrence and to disclose a monetary value on outstanding contributions. Manning in a Facebook Messenger response, said, “ The Minister of Finance or Prime Minister will issue a statement at the appropriate time.”
Meanwhile, attorney-at-law Brian Baig, reminded employers engaging in such acts, under section 40 of the NIS Act, “An employer who fails or neglects to pay or effect payment of a contribution in respect of any person in his employment who is required to be insured under this act, is liable on summary conviction to a fine of $4,000 and six months imprisonment and in the case of a continuing offence shall be liable in respect of each person for whom he neglected or failed to pay or effect payment of contribution, a further fine of one hundred dollars a day for each day that the offence continues after conviction.”