Paying of Statutory Contributions Assessment of Payable Contribution
An Employer is required to remit 10 % of an employee’s GROSS earnings subject to the prevailing ceiling amount.
What constitutes Gross Earning for NAPSA Purposes?
Basic salary and
+ Leave Pay
+ Commutation of leave days
Paying of Statutory Contributions
When are contributions due?
What are the available options for remitting contributions?
- By the 10th of the ensuing month
- Payment made after the due date attract penalty
- Bank transfer
- Cheque payment
- Cash payment
Provision of Contributions DataWhat is the required documentation when making payments?
- Remittance form
- Monthly Return
- What are the acceptable formats for filing Returns?
- Hard copy format monthly return hard copy format.xlsx
- Electronic format (preferred option can be downloaded for each year starting year 2000)
Benefits of e-Filing – CMRs
- Better Record Management – ease filing & retrieval of data
- Error free assessments
- Faster and error free crediting of members’ accounts
- Quicker processing cycle for Benefits
Impact of Errors/Omissions on Member Records
- Fictitious NRC & SS #s
- No NRC & SS #s.
- No full names
- Use of Incorrect Ceiling
- Wrong Assessments
- Manual submissions
- Remittance of contr. above age 55
- Missing member/beneficiaries data
- Multiple SS#s
- Mis-posting of contribution to other employees’ accounts
- Underpayment & Penalty
- Reconciliation problems
- Delays in processing and claim settlement