How is the Social Insurance (Bermuda) deduction rule implemented in HRplus?
This is how it works:
- The Social Insurance (SI) is contributed by both employee and employer equally.
- The employee is required to contribute $1826.91 annually.
- The employer is also required to contribute $1826.91 annually.
- The total annual contribution is $3653.82 for the 2016/2017 contribution year from August 2016 to July 2017.
- The contribution is made on a weekly basis - weeks are determined by the Mondays of the week.
- The weekly contribution is $34.47 per week (per Monday) for the employee as well as the employer each, of the pay cycle.
- In a month with 4 Mondays, the contribution should be $34.47 x 4 = $137.88 for the employee and similarly $137.88 for the employer. This equals a total contribution of $275.76.
- In a month with 5 Mondays, the contribution should be $34.47 x 5 = $172.35 for the employee and employer each for a total contribution of $344.70.
- For a 4-week month, the amount to be remitted to the Social Insurance Board is 275.76 for both the employer and employee.
- For a 5-week month, the amount to be remitted to the Social Insurance Board is $344.70 for both the employer and employee.