Payment of Contributions and Levies
It is compulsory for self-employed persons to be insured and contributions are payable quarterly. Payments must be made on the Contributions Schedule and Payment Certificate provided by the Department. (See Contributions Schedule and Payment Certificate at Annex 2). Contributions should be paid within fifteen (15) days after the end of the calendar quarter for which they are payable to pay at proper time will result in a penalty for late payment in the form of interest at the rate of one per cent per month or $20 whichever is greater.
Contributions and training levy are payable on insurable earnings up to a maximum of $3100 per month for persons age 16 and under pensionable age, while for those persons under 16 and over pensionable age only the levy of 0.5% is payable.
The rates of contributions and levy payable form 1st January of each year are shown in the following table:
| 2003 | 2004 | 2005 | 2006 | |
| % | % | % | % | |
| National Insurance | 10.50 | 11.50 | 12.50 | 13.50 |
| Non-contributory | 2.00 | 2.00 | 2.00 | 2.00 |
| Training Fund | 0.50 | 0.50 | 0.50 | 0.50 |
| TOTAL | 13.00 | 14.00 | 15.00 | 16.00 |
Contributions payable by a self-employed person are based on his/her earnings from self-employment, during the one-year period immediately preceding the contribution year for which the contributions are payable. However, where the person has been self-employed for less than a year, the National Insurance Board has the right to determine the rate of contribution, as it decides, or upon the request of the individual. For these purposes the Board may require evidence of earnings.
A self-employed person on ceasing employment may apply to the National Insurance Board to become a voluntary contributor when he/she has paid at least 150 contributions as an employed or self-employed person (the contributions may be a mixture of both). Self-employed persons on becoming voluntary contributors continue to contribute for old age contributory grant or pension and survivors 'benefit only. The Board determines the rate of contributions payable by a voluntary contributor.
A self-employed person may be excepted from liability to pay contributions for any period when he/she is not in receipt of an income exceeding $1092 a year. A person who desires exception should make an application to the Board for that purpose.