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L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Paying your employees' contributions

For most employees, during 2015 you must pay 6.5% of their gross wage up to the Standard Earnings Limit (SEL) of £4,020 per month. For any wages paid above the SEL, 2% must be paid up to the Upper Earnings Limit of £13,302 per month.

​What you must pay as an employer ​

You must pay the primary and ​​secondary contributions for all employees who:

  • work eight or more hours a week
  • hold a registration card marked FR1 on the back
  • are aged between the compulsory school leaving age and 65 years old (contributions are due from the first month in which a person reaches compulsory school leaving age until the end of the month is which the person reaches 65)
  • are labour only sub-contractors

These employees must be shown on your monthly schedule.

Employees that you don't have to pay any contributions for

The following employees should not be shown on the schedule and you don't have to hold a registration card for them:

  • any employees working less then eight hours in a week
  • sub-contractors
  • people under compulsory school leaving age
    • compulsory school leaving age is 30 June in the school year in which the person reaches 16. The school year runs from 1 September to 31 August

Primary and secondary contributions​

Primary contribution

This is 6% of your employee's monthly (or weekly) gross wage up to the Standard Earnings Limit (SEL); £48,240 for the year or £4,020 per month. 

You should deduct this part from the employee's gross wages before you pay them.

Contribution levels

Secondary contribution

This is 6.5% of your employee's monthly (or weekly) gross wage up to the Standard Earnings Limit (SEL); £48,240 for the year or £4,020 per month.

For any wages paid above the SEL, 2% must be paid by the employer up to the Upper Earnings Limit (UEL).

Contributions levels

​Which contributions to pay for which employees​

The reference code on the back of an employee's registration car​d tells you which contributions you should deduct from the employee:

  • FR1: both primary and secondary contributions are payable
  • XR1: only the secondary contribution is payable

Paying contributions for different employee circumstances​​

Employees working outside the Island

If an employee works temporarily outside the Island whilst working for a Jersey business, contributions must still be paid.

If in any doubt, contact the Contributions and Enforcement Zone.

Employees with more than one job under the same employer​

The earnings from each job will be added together to assess the payable contributions.

For example:

Job

Weekly wages £

Relief waiter 125.56
Barman 267.98
Total wages 393.54

​The primary and secondary contributions will then be taken out of the £393.54 weekly total.

Employees with more than one job under different employers​​

A single service agreement can be set up when two or more employers are employing the same person.

If the employers agree to it, one of them can complete a schedule every quarter and combine the earnings from all the jobs.

This can be a particularly beneficial arrangement for employees who work under eight hours a week for more than one employer.

This is a private arrangement between employers.

Registration cards

A card is given to every person when they register with us at the Social Security Department. You should keep copies of each employee's registration cards, as they contain vital information to use on the schedule.

Registration cards shows the person’s:

  • Social Security number
  • surname
  • first name
  • other initials

From July 2013, this card will also show their residential and work status.

Employees can have more than one registration card.

Registration cards marked XR1​​​

If an employee holds a registration card marked on the back as XR1, they don't have to pay any primary contributions and 6% should not be deducted from their wages. 

You, as the employer, will still have to pay the 6.5% secondary contribution for that employee.

The following people may have a registration card marked XR1:

  • widows or widowers receiving Survivor’s Benefit, Widow’s Benefit or Widowed Father’s Allowance
  • married women who have elected not to pay contributions
  • people over pension age (for some women this is 60)​

Who should hold a registration card

If the registration card shows residential and work status, the employee should retain it. You, as the employer, should take a photocopy of both the card and ID for all new employees.

For existing employees, the old style registration card that doesn't show work status should be retained by the employer.

You commit an offence if you don't have copies of an employee's registration card and photo ID, and you:

  • pay any wages to the employee, or
  • employ the person for two or more working days

If an employee changes their name

If an employee changes their name, they must come in and bring their registration card and documentation, eg​ a marriage certificate, and we will change their details on our system and give them a new registration card with their new name. 

They should show the new card to you to copy, and you can then change their name on the schedule.

If an employee changes their liability

If an employee changes their liability, they will have to come in and change their registration card.
You should pay (or not pay) contributions as if you were holding the old card until you are shown and have a copy of the new card.

How to register with Social Security to pay contributions

Labour-only contractors

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