Business News of Wednesday, 16 July 2008

Source: GNA

Subvented organisations owe SSNIT over six billion cedis

Accra, July 16, GNA - Fifty-Nine out of 98 subvented organizations owe the Social Security and National Insurance Trust (SSNIT) over GH¢600,000 representing contributions of employees and penalty for delays in payment.

Madam Diana Quaynor, Head of Payments and Collections Unit of SSNIT, said this at a day's workshop to update SSNIT Schedule Officers on the Employer Member Account Reconciliation (EMAR), a new billing system by SSNIT.

The EMAR, which will kick-start in August, involves the monthly reconciliation of employer's accounts with SSNIT based on last known payment records in which all contributions reports submitted by the employer would be processed to determine employer's credit or debit balance.

It would also assist SSNIT to determine promptly and inform employers regularly about their financial status. Madam Quaynor said the new system was introduced as a result of the inability of employers to pay employees' contributions promptly, which led to mounting arrears.

She also mentioned incomplete data on contributions, delays/non-payment of contributions by employers and difficulty in determining employers' entire arrears as other challenges that led to the introduction of the system.

Mr. E.K. Nimako, Head of Government Operations Department of SSNIT, said the EMAR, apart from encouraging frequent interactions between SSNIT and employers, would also forge good working relations between the two.

He said the success of the system would depend totally on cooperation between employers and the Trust and urged the officers to honour their part of the obligation to enable SSNIT to achieve the goals.

On benefits of the EMAR, Mr. Nimako said it would provide up-to-date information on the indebtedness position of all registered establishments, improve database through a more regular reconciliation of employer records with the SSNIT, prompt notification to the employer on payment position and detection of inconsistencies between employer records and those of the Trust for reconciliation. Mr Nimako urged employers to keep accurate records and ensure that all employees, whether they are regarded as temporary, casual or on probation, were to have their names, Social Security Numbers and wages recorded on payrolls and Social Security Contribution paid on their behalf.

He also appealed to SSNIT registered members to develop the habit to cross check their statement with SSNIT.