Social Security (Collection
of Contributions) (Jersey) Order 2013
Made 26th June 2013
Coming into force 1st
July 2013
THE MINISTER FOR SOCIAL SECURITY, in pursuance of Articles 1(5), 3, 7,
8, 10, 11, 13, 36 and 51 of the Social Security (Jersey) Law 1974[1], orders as follows –
1 Interpretation
In this Order, unless the context otherwise requires –
“contribution” means
a 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 quarter”
means a period of 3 months commencing 1st January, 1st April,
1st July or 1st October in any year;
“contribution schedule”
means the schedule to be delivered in accordance with Article 4(1);
“Department” means
the Social Security Department;
“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[2].
2 Social
security numbers and contribution liability notices
(1) A person
on becoming an insured person must apply to the Department for –
(a) a
social security registration number; and
(b) a
contribution liability notice.
(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 Department.
(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 Department for a contribution liability notice in the
form “FR1”.
(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 Department for a contribution liability notice in the
form “XR1”.
(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
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 Department.
4 Contribution
schedule
(1) An
employer must deliver a contribution schedule to the Department no later than
15 days after the last day of each contribution quarter.
(2) The
contribution schedule shall –
(a) be
in a form approved by the Department;
(b) contain
all the information the Department requires to determine the contributions
payable in respect of each employee of the employer for that quarter;
(c) contain
the date of termination of employment in respect of any employee whose
employment has terminated (for any reason) during that quarter; 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.
5 Class
1 contributions
(1) Except
as provided in paragraph (2), an employer shall pay to the Department upon
demand being made by the Department after the end of each contribution quarter
the Class 1 contributions payable in respect of each employee of the
employer for that quarter.
(2) An employer
employing more than 80 employees on the last day of the first month in a
contribution quarter shall (and any other employer may) pay the Class 1
contributions payable in respect of each employee of the employer for each
month in that quarter not later than 15 days after the end of each month.
(3) A
payment made in accordance with paragraph (2) shall be accompanied by a
payment advice note.
(4) The
payment advice note shall –
(a) be
in a form approved by the Department; and
(b) contain
all the information the Department requires to determine the contributions
payable in respect of each employee of the employer for that month.
(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
(1) Except
as provided by paragraph (2), an insured person liable to pay a
Class 2 contribution in respect of a month shall pay the contribution
payable in respect of that month to the Department not later than 15 days
after the end of the contribution quarter in which that month falls.
(2) The
Department may, in any particular case or type of case, extend the time limit
for payment of Class 2 contributions by up to 2 months.
(3) A
person required to make a payment under paragraph (1) shall submit a
payment advice note with the payment.
(4) The
payment advice note required by paragraph (3) shall –
(a) be
in a form approved by the Minister; and
(b) contain
all the information the Department requires to determine the contributions
payable in respect of the person for the contribution quarter.
(5) Subject
to paragraphs (1) to (4), a person who is entitled to pay Class 2
contributions may pay those contributions by instalments.
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
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
Department 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 Minister of –
(a) the
person’s name; and
(b) the
person’s address and, if any, the person’s registered office.
(2) A
person must notify the Minister if the person ceases to be an employer.
(3) An
employer must notify the Minister if the employer ceases trading or becomes
bankrupt or is otherwise wound up.
(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 Minister
that the person is so responsible.
(5) An
employer must notify the Minister of a change of the employer’s address
or, if any, the employer’s registered office.
(6) An
employer must notify the Minister 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[3].
(7) A
notice required by this Article must be given within 2 days of the
occurrence to which it relates.
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 Department 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.
(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 Department 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.
(3) The
Department 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.
(4) Despite
paragraph (3), the Department 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.
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 Revocation
of Social Security (Collection of Contributions) (Jersey) Order 2001
The Social Security (Collection of Contributions) (Jersey) Order 2001[4] is revoked.
17 Amendment
to Social Security (Classification) (Jersey) Order 1974
In Part 2, Schedule 1 to the Social Security (Classification)
(Jersey) Order 1974[5] for paragraph 9 in
column (A) there shall be substituted the following paragraph –
“9. Employment of a person
by any one employer on any day or days in a week in which that person renders
services in that employment where such services are rendered for 8 hours or less
in that week.”.
18 Citation and commencement
This Order may be cited as the Social Security (Collection of
Contributions) (Jersey) Order 2013 and shall come into force on 1st July 2013.
senator
f. du h. le gresley
Minister for Social Security