31% Not Current With Social Insurance Payments
[Written by Don Burgess]
Nearly one in three employers and self-employed persons are more than 90 days behind on their social insurance payments.
This comes from a Government spokesperson on the heels of accusations by staff at The Athletic Club that social insurance had allegedly been deducted from their pay cheques, but it had not been credited to their accounts.
That accusation was recorded in a voice note of a staff meeting held at The Athletic Club that was widely circulated.
Government said it can’t comment on specific cases, but “As of October 2019, 31% of employers and self-employed persons are not current with their social insurance payments and have balances over 90 days past due.”
Currently, there is no law mandating employers to notify employees of any discussion between the employer and Social Insurance with regard to payments. The spokesperson said Social Insurance inspectors do advise employers to notify their employees.
The spokesperson added, “If an employee suspects an employer is not paying their social insurance, the first step is to request a record of their contributions by visiting the department or sending an email toiSIContributions@gov.bm to request a copy.
“Following receipt of their record of contributions, If an employed person determines their contributions are not paid and wish to file a complaint, they have the options of visiting the Department to speak with an Inspector, sending an email to SICompliance@gov.bm outlining the issue, or calling 294-9242 to report the matter to an inspector or the compliance manager.”
If you are concerned about your employer finding out that it was you checking up on the payments, the spokesperson said noncompliance matters are kept confidential and can be made anonymously.
If an employer has been deducting an employee’s contribution payable and fails or neglects to pay the deducted funds to the department of Social Insurance, the offender is liable to a fine of $1,000 for each offence.
For more information on The Contributory Pensions Act 1970, please visit here.
Where is the list of, say, the 50 biggest offenders, going back 10 years?
Gee where are the crows at now lying saying this is the PLPs fault? Told you all the nefarious practices this business and others have been getting away with for years…keep telling that lie about taxes implemented less than 6 months ago are responsible for these business closing down..keep telling that lie
You’re a liar
31%! This is theft pure and simple and both the employers and the civil service staff who allow this to happen need to be held accountable. Presumably a similar % applies to payroll tax. What it means is that the law abiding are subsidizing those who flout the law, and employees are left with reduced, or no, benefits.
Why are there no criminal charges, or at least civil to recover these monies? Why is it up to the employee to check with Government as Government knows who are the delinquent companies? Who is the Minister responsible? Stupid question as everyone knows no one is responsible. Why pay any taxes if the oversight is so lax? It’s an invitation to steal.
So so true. What is being done to collect ALL outstanding taxes. I appreciate we all have to pay tax, but increasing taxes when so much is owed is insulting to me
As the cost of doing business in Bermuda continues to rise, I think it likely that more companies will be falling behind on this.
I’ve always said it. Stop giving these companies these work permits, truck permits, etc. when they don’t pay on taxes, social insurance, etc.
The gov has to work as one to ensure these things don’t slip up. (i.e. – If a company wants a truck permit, the compliance officer at TCD would call Social and Tax and say “Hey is so and so company up to date” . Tax or S.I. would say no they’re not. Okay, easy – they don’t get a work permit renewed, or truck permit renewed, or liquor license renewed, no granted government contracted work, etc. The list goes on.)
This would ensure everyone follows by the rules, this has been going on for decades. Work permit holders are number one for being scared to ask. It’s up to government workers to do their job and actually follow through with these things.
That is the way that it should work however the phones don’t seem to work between one Government department & another.
As far as naming & shaming goes seeing who some of the delinquents are might be embarrassing & not fit the popular perception.
“As far as naming & shaming goes seeing who some of the delinquents are might be embarrassing & not fit the popular perception.”
Ayugh ,the only list I ever saw published (not too far back) proved that point .
I bet we don’t see a list. That don’t want us knowing who are the offenders.
But ‘they’ want to perpetuate the myth as to who they think (wish) the offenders are.
because most of the offenders are plp base….
“If an employer has been deducting an employee’s contribution payable and fails or neglects to pay the deducted funds to the department of Social Insurance, the offender is liable to a fine of $1,000 for each offence.”
Ok. And when was the last time anyone was prosecuted under that provision? It might encourage employers to keep up.
Not the half of it and if Gov tries hard ball to get all it is owed, watch how many businesses close. It’s not that businesses do not want to pay, they are too broke to pay. Basic business – first pay suppliers, they keep you in business. No suppliers = No biz, nothing for anybody. Gov should ** Off…
No, basic business rules say that if you are too broke to pay the bills then you are not a going concern and ethically should not be in business. I see no reason why Govt, the employees and the taxpayers should be held hostage by a business pleading poverty. After all, the business will NOT be the one paying a pension to these workers when they want to retire.
Tomorrows News: Businesses that have not paid social insurance has dropped significantly from 31% to 21%
This is theft. Simple theft of employee income. These employers should be prosecuted and banned from any government business activity at once. An ongoing problem you don’t see in places where there’s effective enforcement of the rules. It’s unfair to reputable employers, these employees and the people of Bermuda. Prosecute. Make some examples. Theft is theft. There’s no excuse.
This is THEFT, plain and simple.
Employers should be arrested on ONE count of theft PER every employee they are stealing from.
Period.
You all think this is theft. Try policing lawyers’ fee and their nefarious practices! SMH.
People use their whole life’s earnings through an outdated, corrupt system.
Bernew first of all I want to thank you for continually bringing these news reports to these fore front, but I equally want to blast the Government officials who are responsible for mishandling many reported cases that go without repercussions to the employer.
The real issue is not a lack of people reporting these employers, it is the lack of Government heads and official who turn their head the other way and these worthless thieves of employers keep getting away with the crap.
I say to this P.L.P Government, stop B.S,. the public and start taking action with these employers, and for the Attorney General to stop covering these corrupt employers. I still have my letter from the Attorney General that tell’s me my former employers have no case to answer, yet she refuses to deal with the fact that this company broke the law, every single week, for over 3 1/2 years, that amounts to hundreds if not a few thousand violations from the same employer for more then five employees, but yet they can go into the Social Insurance office write a check and the violations go unchallenged or dealt with.
Yes many (EMPLOYEES) have done the right thing, and made the necessary reports, but the failure is in the government offices and it’s official who are not hauling anyone before the courts, This Government is pathetic when it comes to dealing with the rights of the working class.
Hoping with Mr. Jason Hayward now elected we will see him challenge these underhanded Government officials, there is no other way to call a spade a spade but to call it.
I’m not a business owner but have worked very closely to higher ups in companies to know that its VERY expensive owning and running a business. The cost of running a business is just too high and more taxes keep being pushed onto the employer. Yes, it is unacceptable to deduct from an employee’s pay and not pay their taxes but has anyone ever thought that maybe it can’t be paid right there and then? Its not that the employer is stealing, maybe the employer has to juggle things around in order to pay wages that month or rent or health insurance? Eventually those SIN contributions will be paid and I would rather my salary and health insurance paid first, don’t you think? I understand that the Gov’t is trying to take care of Mr. & Ms. Bermuda, but what about Mr. & Mrs. Bermuda that’s trying their best to keep us employed? There has to be an understanding of that as well. Eventually its all going to go bust and then what? Can Gov’t afford to take care of all of us, No.
Right got on Brother, you got it straight – it’s hard as hell meeting a payroll every week, 52 weeks a year. Especially when Government gives a seasonal retail business in Dockyard a dozen work permits while those of us who employ only Bermudians must pay our taxes 52 weeks a year.
Question Bermudian?…..So I am your tenant, but have you ever thought that maybe my rent can’t be paid every month for six months to a year because I have to juggle things around to pay for my Belco, One Communications, BTC etc. bill, how long will I remain as your tenant?
I will bet my LAST dollar that you will be the first person in line at the Court house seeking to evict me………so stop making excuses for these blatant thieves who deduct our money but fail to pay the contributions
What is the difference between late payroll tax payments and late social insurance payments and late pension payments? If employers are late on social insurance does this mean they are late with everything else and if so what do the pension and payroll tax departments do about it? Do they prosecute?
I am sorry but 31% is an EPIDEMIC! Employees need some kind of protection against employer theft. That money belongs to employees!