The Social Security Board would like to take the opportunity to remind all employers and the general public regarding the treatment of bonus paid to employees. Please pay special attention to all requirements to pay contributions as well as to any exemptions that may apply.

It is important to note that while there are no Social Security contributions payable in respect of bonuses paid in the month of December, Housing and Social Development Levy andSeverance Payment Contribution are payable in relation to such bonuses.  Please note, however, that there are some stipulations in relation to earnings above and below a certain amount, as follows. 

·       Persons receiving bonus who earned an average of $1500 (or more) per month during the year will pay Levy from the bonus at the rate of 8%. The employer is entitled to deduct this from the amount of the bonus

·       Persons receiving bonus who earned an average of less than $1500 per month during the year will be exempt from paying any levy from their bonus. This means that in such cases, the employer is not entitled to deduct Levy from the bonus payment

·       The Employer’s portion of the levy is also exempt in respect of bonuses paid.

·       The Employer will pay Severance Payment Contribution as normal  at the rate of 1% in respect of any monies paid to employees including bonus

Contributions on all other regular wages are payable as normal.

If you have any questions regarding these matters, you may contact your Social Security Offices in Basseterre and Charlestown and ask for the Compliance Department or any other officer for guidance.