What are Social Security Categories?
Social Security Contributions are payments made towards the national insurance scheme which aims to assists payees with a number of benefits including pensions, allowances, and social and medical assistance. For more details about social security contributions, refer to the Social Security Act.
Creating social security contributions is a 2-part process. First, create the social security category and associated rates in accordance to IRD directives, then the associated Rate with that social security category.
What are Social Security Categories used for?
Social Security Categories together with the respective rates are used to deduct the appropriate Social Security Contributions (SSC) from the relevant payrolls.
Adding a new Social Security Category
To create a new social security category, click on Social Security Categories from the Main Screen followed by the Insert icon.
Code: A unique code for the category
Description: A description of the SSC Class. This should match the category given by IRD. - Change to Category -
Age group: Select the age group this SSC Class is available to.
Student: If SSC class is available to students*, check this box.
Can choose Contribution type: Individual employees can choose whether they pay their SSC as a capped percentage or a fixed rate.
*IRD defines students as those who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration.
Once ready, click on the Save icon to commit changes. Next, ensure the Social Security Category you want to add rates to is highlighted and click on Rates.
Rates detail how SSC are worked out, as detailed by the Inland Revenue Department. Shireburn Software updates SSC profiles whenever they are updated by the authorities and as such SSC profiles should only be created in exceptional circumstances.
Social Security Categories have rates assigned to them; this is how the actual payable contributions are worked out in accordance with directives by the Inland Revenue Department (IRD).
Social Security category code: The code allocated to the Social Security Category which this rate is a member of. This code is auto-populated.
Code: A unique internal reference code for the rate
Date from: Date from which the rate applies
Date to: Date until which the rate applies
Born Before: Employee’s date of birth must be less or equal to this date for rate eligibility
Weekly minimum pay: The minimum pay an employee must earn for rate eligibility
Weekly maximum pay: The maximum pay an employee can earn for rate eligibility
Company rate: The percentage rate paid by the employer
Company minimum contribution: The minimum contribution payable by the employer for this rate
Company maximum contribution: The maximum contribution payable by the employer for this rate
Employee rate: The percentage rate paid by the employee
Employee minimum weekly contribution: The minimum contribution payable by the employee for this rate
Employee maximum weekly contribution: The maximum contribution payable by the employee for this rate
Once ready, click on the Save icon to commit changes.
Editing an existing Social Security Category
To edit an existing Social Security Category, highlight the category by clicking once on the respective row and click the Edit button.
Deleting an existing Social Security Category
To delete an existing payment highlight the category and click on delete.
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