Contribution schedule guide for employers

​​​​​​​​What a contribution schedule is

A contribution schedule is a document that you fill in every quarter (every three months). Its main purpose is to let us know:​​

We use this informatio​n to calculate how much social security you must pay to us.

You must give other information (where applicable):

As an employer you must pay the primary and secondary contributions for all employees who:

What a contribution quarter is

A contribution quarter is a three month period. 

Contribution schedules and payments are collected for the three month period at the end of each contribution quarter. 

The quarters are:

Submitting your schedule online

You can complete and sub​mit your Social Security schedules, along with your ITIS and manpower returns, using the employer returns website. 

Any information you enter is stored, available for reference and will pre-populate your next return. 

You can also upload files for: 

• ITIS returns
  
• contributions schedules
  
• manpower returns
• benefit in kind (BIK) returns​

You can register and use the employer returns website below. 

​Employer returns website

Using your own schedule​

You can produce your schedule on your own computer system and send us an email with no more than 20 employees per page. 

If you use a payroll software supplier, they’ll be able to help you to produce an email. 

You must send us a sample of your proposed schedule for approval. ​

Email us

Gross earnings

Gross earnings are earnings paid to an employee before any deductions are made.

A social security pay period is the same as a calendar month. 

The earnings should be declared for the month in which they were paid, not earned. 

Table showing items not to include in an employee's gross wages

Table showing items to include in an employee's gross wages

How to show holiday pay on a contribution schedule

Many employers pay their employees holiday pay before the normal pay day.

For example: a weekly paid employee is taking two weeks holiday at the beginning of August. 

Their wages are £250 per week. 

You pay them £750 wages in the last week of July; the normal week’s wage plus two weeks for the August holidays.

In this example, two weeks wages would normally have been paid in August. 

So you have to treat those two weeks salary as if you had actually paid them in August. 

You should complete the schedule as follows:

You deduct social security contributions as if the wages were paid at the normal time.

Employees who receive pay after they have left your employment

Any wages paid to someone after they have left, must be treated as if it had been paid in the month they left. 

If the payment is one that should be included in gross earnings, social security contributions are due and payable.

If you haven’t returned your schedule yet 

​If the contribution schedule hasn’t been returned yet, add the extra pay to that already paid and show the total on the schedule.

If the total earnings are above the monthly earnings ceiling, only deduct contributions up to the ceiling.

If you have returned your schedule 

If the contribution schedule has already been returned, contact the Contributions and Enforcement Zone and ask for a supplementary schedule for the month of the employee leaving. 

Add the extra pay onto the earnings shown on the original schedule. 

If the total is more than the monthly earnings ceiling, only deduct contributions up to the ceiling. 

On the supplementary schedule, show the monthly earnings ceiling less the earnings shown on the original schedule.

For example, additional earnings for March 2017:

In this example, you should show additional earnings of £720 on the supplementary schedule. 

You’ll be required to pay 2% of the earnings above the monthly earnings ceiling. In this example, you will pay 2% on £720.

If you’re in any doubt whether a particular payment should be included in the gross earnings, contact the Contributions and Enforcement Zone. ​ 

How to show social security benefit deductions on the schedule

This only applies to you if: ​

It’s important to adjust the wages on the schedule in the month the employee was ill. 

For each day that we pay benefit, a credit is put on the employee’s account. 

These credits protect the employee’s social security record against the loss of earnings.

It can be difficult to work out ​the correct earnings to show on the schedule as there is usually a delay in the employee being ill and you being given the social security benefit. 

It may be necessary for you to adjust the contributions deducted in a month after the illness.

Example:

An employee is ill for ten days in August. 

They give you the value of the social security benefit in September. 

​Their normal wages are £1,500 per month and the value of the benefit is £254.30

​In reality, you will have adjusted the employee’s wages and contributions in September. 

However, on the schedule you must show the adjustment as if it had been made in the month of illness.​

Don’t worry that your wage records will be different from the schedule; make a note in your records that this is due to the social security benefit.

Unusual pay practices that reduce or avoid contributions

Employees are usually paid on a weekly or monthly basis, however there may be occasions when this practice is not followed.

We can recalculate the contributions due for all employees back to when the unusual pay practice started. The contributions will be calculated as if a normal pay practice had been followed.​

Calculation of contributions

Calculating the correct deduction

We have an online contributions calculator to help you in calculating an employee's correct contribution.

Contributions calculator

If you want, you can use your own accounting machinery instead. 

You can learn more about how contributions are calculated below.

The contribution month

The earnings should be declared for the month in which they were paid, not earned. 

Importantly, when a payment of wages (normally made in one month) is paid in a different month, it should be treated as being paid at the normal time. 

For example, teachers may be paid their August wages at the end of the school year in July. 

The wages paid early should be shown on the schedule as if they were actually paid in August.

Weekly paid employees

Social security contributions are deducted in 25p steps for weekly paid employees. 

This means that you should round the earnings down to £0.00, £0.25, £0.50 or £0.75 before working out the contributions.

For example:

Keeping a running total of weekly paid wages

It is important to keep a running total of wages paid to an employee in a calendar month.

Contributions are only payable on earnings up to the monthly earnings ceiling.

If a weekly paid employee receives earnings of more than the monthly earnings ceiling, the contributions must be adjusted.

In this example, it is assumed that the monthly earnings ceiling is £4,180. 

In that week, contributions are only required for £700 (£870 - £170 = £700). 

The rest of the earnings must be overlooked in the contribution calculation.​

Monthly paid employees

Social security contributions are deducted on round pounds for monthly paid employees. 

​Always round the earnings down to the nearest whole pound before working out the contributions.​

Four-weekly paid employees

Normally there is one four-weekly payment in each month and each payment can be treated as a monthly payment.

Occasionally two four-weekly payments fall in the same month, so these payments should be added together to give the monthly payment. 

Make sure that contributions aren’t deducted on earnings above the monthly earnings ceiling. 

​Fortnightly

Usually two, and sometimes three, fortnightly payments will fall in one month. 

​These payments must be combined in a similar way to weekly paid earnings.

Daily

As long as the employee works eight hours or more in a week, contributions are still due. 

​These earnings must be dealt with in a similar way to weekly paid earnings.

Earnings period in after one month

Step 1

Write the social security number and name of all your employees on the schedule.

​
Use a black ball point pen to fill in the schedule. Write each digit or letter in a separate box as shown.

The clearer you complete the schedule the less chance there will be for error.

Step 2

When you have worked out the earnings to be shown on the contributions schedule for a particular month, write them on the contributions schedule.

Only put down whole pounds. Don't include pence or the £ sign. Write each number in a separate box.

For example, you should enter £1,204.30 as:

Step 3

Before returning the contribution schedule to us, check that:

• all your employees, working eight hours or more per week, are shown on the schedule
  
• the correct earnings are entered for each employee
  
• employees who have joined you during the quarter have a 'start' date entered
  
• employees who left you during the quarter have a 'left' date entered
  
• if you know that an employee has left the Island, that an 'X' is shown in the appropriate column
•  if any of your employer details have changed, enter the new details on the back of the schedule
• you have filled in the Employer’s Declaration
•  you have signed and dated the declaration
• you have not added the spouse or civil partner of the company/ business owner

Step 4

Send the contribution schedule to us without payment.

Contribution schedules must be received by the department on or before the 15th day of the month following the end of a quarter.​

Remember to photocopy the schedule if you want to keep a copy.

Payment of contributions

​As soon as your schedule is fully processed, a statement of account will be sent to you. Payment is due on demand, but we give seven working days for you to pay the account.

• debit card, either by phone or in person
  
• Direct Debit monthly in arrears
  
• we will send you a Direct Debit form to complete
• BACS payment directly into our bank account (sort code 40-25-34 account number 12155001). We'll also need your social security number or employer code and period
  
• cash or cheque made payable to the Social Security Department
  

If you pay your contributions by Direct Debit, your rate will be calculated from your tax details. We'll let you know if your rate has been amended.

If you can’t settle the contributions requested against your own accounts, contact us. 

Employers with 80 staff or more

If you employ 80 staff or more, you need to pay contributions on a monthly basis.

Payment is due by the 15th day of the month directly following the month that the contribution has been calculated for.

For example:

Don't send the schedule in every month. 

It should be returned at the end of the quarter in the usual way.

Changes in employees’ circumstances

If an employee reaches the age of 16​​

From the first day of the month that an employee turns 16 years old, they must start paying contributions.​

If the employee is working eight hours a week or more, you have to pay contributions for them.

If an employee leaves employment at pension age​​

​If you have the employee’s social security or registration card, give it back to them. ​

Write the date the employee left your employment in the 'Left' column on the schedule.

If an employee continues to work past pension age​

​An employee doesn’t have to pay contributions from the month after they reach pension age.

The employee must exchange their social security or registration card for a new registration card.

You must stop deducting 6% from their wages and continue to pay contributions for as long at the employee is working for you. 

This means you must continue to put them on the contributions schedule and pay secondary contributions of 6.5%.

If an employee dies

​Contributions are required for all wages paid up to and including the date of death.​

Wages paid after the death should be ignored when working out what contributions should be paid.

If an employee chooses not to pay contributions​

​Some people can choose not to pay contributions.​

The employee must exchange all their current cards, marked FR1, for a new registration card marked XR1, once we have approved this. 

They will ask you for their social security or registration card if you still hold it.

You’ll need to carry on deducting primary contributions from their wages until they show you a new registration card marked XR1.

A photocopy of the card should be kept for your records with a copy of their photographic ID.

Never stop deducting contributions on the word of the employee. The registration card is your only authority.

If an employee chooses to start paying contributions

An employee who has made an election not to pay may cancel it at any time.​

They must exchange all their social security or registration cards marked XR1 for a registration card marked FR1.

Do not deduct primary contributions from their wages until they give you the registration card. The registration card is your only authority.

If an employee with a married woman’s election (red / XR1 card) divorces​

If a married woman who has a non-paying election becomes divorced, they must start paying contributions from the first of the month following the date of her decree absolute. ​

The employee must tell us that she is divorced and the date of the decree absolute. 

She must also exchange her current cards for a new registration card marked FR1.

A photocopy of the card should be retained for your records together with a copy of their photographic ID.

​Making mistakes on contribution schedule

If you spot a mistake before returning contribution schedule​​

You should cross out the whole line and rewrite it on a new line.

If you spot a mistake after returning contribution schedule ​​

​You should write to or email the Contributions and Enforcement Zone telling us the earnings that should have been shown on the schedule.

​If you make a mistake in the payment of gross earnings​

If you pay an employee an incorrect amount of earnings in one month and adjust the earnings in the following month, you must show the earnings that should have been paid on the schedule.

If you miss an employee off the schedule​​

If you have missed an employee off completely, or have not included some of their wages, contact us so we can send you a supplementary schedule. 

You must show the items that you have missed off the original schedule.​