Social Security
(Collection of Class 1 and Class 2 Contributions) (Jersey) Order 2013
1 Interpretation[1]
In this Order, unless the context otherwise requires –
“Comptroller”
means the Comptroller of Revenue described in Article 2 of the Revenue Administration
(Jersey) Law 2019[2];
“contribution” means a Class 1 or Class 2 contribution
payable under the Law;
“contribution liability notice” means a notification of
the code “FR1” or “XR1” in accordance with Article 2;
“contribution liability code” means the letters “FR1”
or “XR1”, as the case may be, as notified in accordance with
Article 2;
“contribution schedule” means the schedule to be
delivered in accordance with Article 4(1);
“employee” means an employed person over school leaving
age –
(a) who
is a Class 1 insured person under Article 3(2) (a) of the Law and not
treated as a Class 2 insured person by Order under Article 3(3) of
the Law; or
(b) who
is treated as a Class 1 insured person by an Order under Article 3(3)
of the Law;
“inspector” has the same meaning as in Article 35
of the Law;
“Law” means the Social Security (Jersey)
Law 1974;
“payment due date” in relation to Class 1 and
Class 2 contributions means the 15th day of the month following the
month in respect of which the contributions are payable.
2 Social
security numbers and contribution liability notices
(1) A person on becoming an
insured person must apply to the Minister for –
(a) a
social security registration number; and
(b) a
contribution liability notice.[3]
(2) The contribution
liability notice shall take the form of a code comprising –
(a) the
letters “FR1” in the case of a person who is liable for
contributions; and
(b) the
letters “XR1” in the case of a person who is not liable for
contributions.
(3) The application must be
made –
(a) not
later than the end of the month in which the person becomes an insured person;
and
(b) in
the manner directed by the Minister.[4]
(4) An insured person who
has a contribution liability notice in the form “XR1” and who
becomes liable for contributions must, within 7 days of becoming so
liable, apply to the Minister for a contribution liability notice in the form
“FR1”.[5]
(5) An insured person who
has a contribution liability notice in the form “FR1” and is no
longer liable for contributions must, as soon as reasonably practicable, apply
to the Minister for a contribution liability notice in the form
“XR1”.[6]
(6) An employee must give
his or her social security number and contribution liability notice to the
employer not later than 2 working days after starting the employment.
(7) An employer must
not –
(a) employ
an employee for more than 2 days unless the employee has given the
employer his or her social security number and contribution liability notice in
accordance with paragraph (6); or
(b) pay
earnings in respect of that employment until the social security number and
contribution liability notice is so given.
3 Periods
of absence[7]
If an insured person whose liability to pay contributions ceased
during a period of absence from Jersey returns to Jersey and becomes ordinarily
resident in Jersey, the person must, within 7 days of becoming ordinarily
resident, inform the Minister.
4 Contribution
schedule
(1) An employer must
deliver a contribution schedule to the Comptroller no later than 15 days
after the last day of each month.[8]
(2) The contribution schedule
shall –
(a) be in
a form approved by the Comptroller;
(b) contain
all the information the Comptroller requires to determine the contributions
payable in respect of each employee of the employer for that month;
(c) contain
the date of termination of employment in respect of any employee whose
employment has terminated (for any reason) during that month; and
(d) contain
a declaration signed by or on behalf of the employer that the information given
in the statement is true to the best of the employer’s knowledge. [9]
5 Class
1 contributions
(1) An employer must, on or
before the payment due date, pay to the Comptroller the Class 1
contributions payable in respect of each of the employer’s employees. [10]
(2) A payment
of Class 1 contributions must be accompanied by the information relating
to it that the Comptroller requires in a form approved by the Comptroller.[11]
(3) [12]
(4) [13]
(5) An employer may recover
a primary Class 1 contribution payable by the employer in respect of an
employee by deducting an amount equal to the contribution from earnings payable
by the employer to the employee.
(6) However
an employer must not deduct –
(a) from
any one payment of earnings an amount that is more than the amount of the
primary Class 1 contributions payable by the employee in respect of the
earnings; or
(b) a
total amount in any month that exceeds the maximum primary Class 1
contributions payable by the employee in respect of the earnings for that
month.
6 Class 2
contributions[14]
(1) Except as provided by
paragraph (2), an insured person liable to pay a Class 2 contribution
in respect of a month must pay to the Comptroller the contribution payable in
respect of that month on or before the payment due date.
(2) The Comptroller may, in
any particular case or type of case, extend the payment due date by up to 2 months.
(3) A payment of Class 2
contributions by a person who is liable to, or who is entitled to, pay
Class 2 contributions must be accompanied by the information relating to
it that the Comptroller requires in a form approved by the Comptroller.
7 Maintenance
and inspection of employers’ records
(1) An employer shall
maintain, in respect of each employee, records of –
(a) the
dates and amounts of all earnings paid by the employer each month;
(b) the
deductions of contributions made from those earnings;
(c) the
employee’s social security number and contribution liability code.
(2) The employer
shall –
(a) retain
the records required under this Article for 6 years; and
(b) during
that time make them available for inspection by an inspector if so required.
8 Age
determination[15]
If a person, by reason of attaining an age during the course of a
month, becomes liable for contributions or different amounts of contribution,
the Comptroller shall determine whether any such contribution is payable in
respect of that month either by treating the person as having attained that age
at the beginning of the month or as not having attained that age until the end
of the month.
9 Death
of employer
When an employer dies anything that the employer would have been
liable to do under this Order shall be done by –
(a) the employer’s
personal representatives; or
(b) in the case of an
employer who paid earnings on behalf of another person, by the person
succeeding that employer or, if there is no such person, the person on whose
behalf the employer paid the earnings.
10 Succession
to a business, etc.
If there is a change in the employer from whom an employee receives
earnings, such change occurring by reason of the trade, business or other
undertaking of the employer being transferred from one person to another, the
employer after the change shall be liable to do anything that the employer
before the change would have been liable to do under this Order had the change
not taken place.
11 Employer’s
duty to notify Minister
(1) A person who becomes an
employer must notify the Comptroller of –
(a) the
person’s name; and
(b) the
person’s address and, if any, the person’s registered office.[16]
(2) A person must notify
the Comptroller if the person ceases to be an employer.[17]
(3) An employer must notify
the Comptroller if the employer ceases trading or becomes bankrupt or is
otherwise wound up.[18]
(4) Where the employer
becomes bankrupt or is otherwise wound up, the person responsible for the
administration of the bankruptcy or winding up must notify the Comptroller that
the person is so responsible.[19]
(5) An employer must notify
the Comptroller of a change of the employer’s address or, if any, the
employer’s registered office.[20]
(6) An employer must notify
the Comptroller of a change in the shareholdings in the employer or a change in
the persons having control of the employer if the employer knows or suspects
that, by virtue of the change, an insured person is reclassified, pursuant to
the Social Security
(Classification) (Jersey) Order 1974.[21]
(7) A notice required by
this Article must be given within 7 days of the occurrence to which it
relates.[22]
12 Abnormal
pay practice
(1) This Article applies
where an employer follows an abnormal pay practice that has the effect of
avoiding or reducing contribution liability.
(2) Where this Article
applies the Comptroller may treat any payment of earnings as having been made
in the month in which it would have been made had the employer followed normal
pay practice.[23]
(3) If, as a result of
paragraph (2), contributions become payable or increased contributions
become payable in respect of an employee the employer shall be liable for the
contributions or the increase in the contributions.
(4) An employer shall not
be entitled to recover from the employee any amount paid by the employer under
paragraph (3).
13 Monthly
equivalent of standard rate of benefit
The monthly equivalent of the standard rate of benefit shall be 4 and
one third times the standard rate of benefit.
14 Application
for supplementation
(1) This Article applies
where a person claims to be entitled to have his or her contributions
supplemented out of the Social Security Fund in accordance with Article 9
of the Law.
(2) An application for
supplementation must –
(a) be
made in writing in such form as the Minister may approve or direct; and
(b) be
accompanied by such evidence of the applicant’s income and contributions
the applicant has paid or been credited with as the Minister may require.[24]
(3) The Minister shall not
approve the application unless it is satisfied that the sum of the
contributions that the applicant is required to pay and entitled to be credited
with entitles the applicant to have those contributions supplemented in
accordance with Article 9 of the Law.[25]
(4) Despite paragraph (3),
the Minister shall not approve the application if it is satisfied that
applicant has intentionally arranged his or her affairs to take advantage of
Article 9 of the Law.[26]
15 Offences
A person who contravenes or fails to comply with a requirement of
this Order shall be guilty of an offence and liable to a fine of level 3
on the standard scale.
16 Citation[27]
This Order may be cited as the Social Security (Collection of Class
1 and Class 2 Contributions) (Jersey) Order 2013.