A Self-Employed person is liable to pay a contribution for each contribution week or part of a week that he/she is employed as a self-employed person.
No contribution is payable when the self-employed person reached the age of sixty five (65).
If you work both as a self-employed and employed person in the same contribution week, you will not have to contributed as a self-employed person and therefore will be liable for payment of contributions as an employed person only.
At the time of registration, the self employed person must select a category of income on which contributions will be paid. The following table is an example of a list of Categories of Income.
|Category||Weekly Income EC$||Weekly Contritbution EC$|
The category that is selected by the self-employed will be valid for one year. At the end of the year the self-employed person will have the opportunity to select a category immediately above or below the initial one selected. In all cases the category will be valid for the period chosen. Please enquire about current categories of income.
If no selection is made by the required time each year, the self-employed person will be expected to pay contributions based on the category selected in the previous year.
There are certain stipulations that apply to self-employed persons over the age of fifty five (55);
The amount of contribution payable by the self-employed person for each contributory week in respect of his employment shall be 8% of the weekly income elected by him/her in accordance with the categories of income set out in the table in the drop down above.
Unlike the majority of insured persons who work for someone else and will have their earnings reported by their employer, self-employed persons must report their own earnings and pay contributions themselves.
Every self-employed person shall, within fourteen (14) days after the end of each calendar month, pay all contributions payable by him/her for that month.
If, during the course of the calendar month the employment of a selfemployed person ceases or is interrupted because of sickness, change of employment status, or other circumstances which might affect his/her liability to pay contributions for the whole month, he/she shall nevertheless, be liable to pay contributions in respect of that part of the month during which he/she was self-employed, that is, up to the day immediately proceeding the date of cessation: provided that a self-employed person shall not be liable to pay contributions as a self-employed person in respect of any period which he/she is either in receipt of benefit, (with the exception of survivors) or is liable to pay contribution as an employed person.
With each payment of contribution, the self-employed person must complete and submit a Contribution Certificate – Form SE -2. Correct names and social security numbers are the keys to successful processing of contributions.
A person who, during one part of the calendar year, is mainly employed as an employed person and for another part of that year is mainly employed as a self-employed person shall be liable to pay contributions respectively as an employed person and as a self-employed person for the relevant period. However if you are working as a self-employed and employed person at the same time, you are only required to pay as an employed person.
An additional charge of 3% will be added to the amount of late contributions for the first month or part of a month. For every additional month or part of a month that the late contribution remains unpaid, it shall increase by 1%.
Every self-employed person who terminates his employment as a selfemployed must communicate such termination to the Board’s Office not later than the end of the calendar month following that, which includes the date of termination of employment. To terminate your employment, please complete and submit Form SE 3 – “Termination as a Self-Employed.” This form is available at the Social Security Office.
A self-employed person’s failure to pay contributions or to comply with any obligation imposed on him/her by the Regulations constitutes an offense and shall be liable on summary conviction to a fine of eight hundred dollars ($800.00) or imprisonment for a term of six (6) months or to both such fine and imprisonment.