By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
The National Insurance Board (NIB) has gained more than $400,000 in outstanding contributions since launching a payment plan incentive for employers in February, a Cabinet Minister said yesterday.
Shane Gibson, minister of labour and national insurance, acknowledged that ensuring maximum compliance has been challenging for NIB.
“Although having fallen short of its broad target of $263 million in [contributions in] 2015 by some $2.8 million, NIB launched a highly successful installment agreement initiative in February of this year to coincide with Business License renewals, resulting in the Board collecting more than $400,000 in outstanding payments,” Mr Gibson said during the 2016-2017 Budget debate.
He added that the Board would seek to partner with other government agencies to improve compliance and collect outstanding payments from employers.
“There are many businesses who deduct National Insurance money and refuse to turn it over,” Mr Gibson said.
“It isn’t until an employee comes in for either a short-term benefit or some long-term benefit that they are advised that their payments have not been made.”
He urged employers not to wait until they require a ‘Letter of Good Standing’ to seek to become current with NIB payments.
“If you don’t become compliant you can’t get your Tax Compliance Certificate,” Mr Gibson said.
“Don’t wait until you can’t collect a cheque from the Government to try and get a Letter of Good Standing. We don’t want to see any employee disadvantaged as a result of employers not paying contributions.”
Mr Gibson said that at April 30, 2016, some 206,000 NIB smart cards have been issued. The card is considered the gateway to National Health Insurance (NHI) registration.
“Registration for the smart card begin in April 2014, and NIB launched the enhanced drive in January 2016,”he added.
“As of April 30, 2016, some 209,000 smart cards have been issued by NIB. With approximately 80,000 school children and 600,000 insured persons remaining to be registered, registration will continue.”
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