An “employer” is any person or his / her representative who employs a person for eight hours or more in any contribution week (Sunday to Monday).
These include:
- any body of persons, whether such body be a legal person or not;
- any managing agent of an employer;
- the personal representative of a deceased employer;
- in relation to a person engaged in plying for hire with any vehicle or vessel the use of which is obtained from the owner thereof under a contract of bailment (other than a hire purchase agreement), the owner;
- in relation to a person employed for the purpose of any game or recreation and engaged or paid through a club, the manager, or where the club is managed by a committee, the members of the managing committee of the club;
“Employment” includes any trade, business, profession, office or vocation.
Every person who employs one or more persons is required under the Social Security Act to apply for Registration (R1 Form) as an employer. The application for registration is to be made within seven days of employing his/her first employee. The application is to be filled out in reference to one particular establishment at a specified address. If in one establishment, there is more than one economic activity under a single management that activity in which the largest number of persons are employed is to be given as the “nature of the business” and indicated on the form.
Every registered employer is given a registration number in respect of a specified establishment to be used as a reference number on all correspondence with the Social Security Board. Your business establishment is to have only one registration number throughout its existence. An employer will be assigned by Social Security only one Employer Number but may be assigned more than one Business Number if he / she operates several businesses.
On being registered under the Act, an employer shall, within fourteen days after such registration, present to the Social Security Board a list of all his/her employees.
Someone working under a contract of service employment would be eligible for Social Security coverage. This is any agreement between employer and worker by which the latter works under the authority and direction of the employer, even if not under his direct supervision, in return for payment (cash or kind), fixed according to the hours of work or piece rate / task rate.
Employers shall employ only those persons in possession of valid registration cards indicating that such cards are valid for employment.
Inactive Employer or Closure of Business
In the event that a business closes down or is temporarily out of business, Social Security needs to be informed immediately. This notice is recorded on the closure of Business Form ( IN15) and includes the employer’s registration number and business number, which was issued when the employer first registered as an employer with Social Security. If there is a business name other than that of the employer, it must be stated along with the address of the work site. An address for the employer must also be supplied.
The actual date of closure or inactivity of the business must be stated as this particular information will determine the amount to be paid or payable at the time contributions are due. Failure to submit the correct information could eventually lead to court action, garnishment or distress, i.e. if an employee would claim benefits and there is incorrect information on behalf of the employer. At the time of closure or inactivity, the employee’s and the employer’s contributions must be paid in full so as to avoid any delays in claims and payments to employees. Once the correct information is given, the employer or employer’s representative must sign and date the form and give his or her remarks if necessary. An employee of Social Security must also sign and date the form at the same time the employer/representative does.
An IN15 requires very simple and straightforward answers from the employer for the benefit of Social Security, the employer and the employee.