June Payroll Support

Terms and Conditions for June Payroll Support

Introduction

In order to comply with the stipulations of the financial support from the Netherlands, adjustments have been made to the program for Payroll Support applicable for the SSRP payroll support for June 2020.

To support businesses that are facing revenue losses due to the Covid-19 pandemic and to assist in the prevention of lay-offs, the Government of Sint Maarten will provide eligible employers with payroll support for their employees. This Payroll Support Plan is aimed at ensuring job retention and creating a buffer for the increasing economic impact.

  • The changes are summarized as follows: The implementation of a graduated scale: a one to one ratio – the percentage of loss of revenue is applied to the NEW basis in order to determine the payroll support that qualifies for the  Payroll Support Program for the month of June 2020.
  • The maximum support by the government will be 60% of the registered ZV / OV wages at USZV with a maximum of the ZV wage limit (NA f 5,651.36 per month). More details in the section “What is the Government’s contribution?”.
  • The “Exempt list Business sector/category” is no longer applicable. The implementation of a 20% employee contribution of the NEW basis this must be regulated between employee and employer.
  • The Government will publish the names of eligible companies for the SSRP payroll support program as of June 2020. If the employer is granted payroll support for June 2020 and received payroll support in April or May, this will be published as well.

Ministerial Regulations

SZV Employer Portal

The Social and Health Insurances (SZV) has been entrusted by the Government of Sint Maarten to execute the Covid-19 Stimulus Payroll Support Plan on behalf of Government. Employers that want to apply for this Payroll Support Plan must have an active account for the SZV Employer Portal. If you do not have an account, visit the Employer Portal page by clicking here and register for an account. 

Please note that all amounts in the SZV Employer Portal should be recorded in NAf. If your payroll administration is in USD please use an exchange rate of USD1 = NAf 1,78 . All payments by SZV will in NAf.


Summary June payroll support

The SSRP payroll support for June 2020 consists of four elements:

An employer has to prove, based on the declared revenue (the total of the taxed- and exempted revenue) as per the comparison of the monthly TOT returns for the applicable months of 2019 and 2020 that their revenue has declined by more than 20% because of the Covid-19 pandemic.

1. The employer must provide proof loss in revenue for the month of June of at least 20%;

2. The employee must agree to a 20% contribution (in Dutch: 20% eigen bijdrage) of the new basis;

3. The government’s contribution is maximum 60% of the new basis;

4. The employer is responsible for the balance of the total payroll.

Based on the decrease in revenue, a calculation is made that will determine the amounts that the employee and government will contribute to the payroll costs of the employer


Who can request for the Payroll Support Plan?

The employer applies for the Payroll Support Plan. An employer must have employees and these employees must be registered at SZV in accordance to the Sickness Insurance and Accident Insurance Ordinances.

Employers must apply for SZV’s online Employer Portal to be able to submit an application for the Payroll Support Plan and confirm or modify online the employees’ information.

Click here to go to the SZV Employer Portal to apply or access your online account.


Who is an employer?

You qualify as an employer, if you employ one (1) or more persons, meaning that they work for you and receive wages. Everyone who has one or more employees executing labor is an employer.

An employer can be a natural person, such as an individual, called a sole proprietor, or a legal entity, such as a corporation, a foundation, a N.V. or a B.V.

All employers are required by law (in accordance to the Sickness Insurance and Accident Insurance Ordinances) to register at SZV.

 

What is the start date of the June payroll support?

The start date is June 1st 2020 and these conditions are applicable for the payroll support of June 2020.

What is the Employee contribution?

In order to qualify for the SSRP payroll Support June 2020, employees have to make a contribution (‘eigen bijdrage’) of 20% of the NEW basis. This means that there must be an agreement between employer and employee containing the exact and verifiable execution of the employee contribution of 20%. If an employee’s regular wage equals the minimum wage, the employee does not have to contribute.

Contributions from the employees are made from the new basis which is based on the total remuneration package and not necessarily solely at the expense of the salary part of the remuneration package. For example; vacation allowances, vacation days, secondary benefits and working hours can be contributed as well.

SZV has included the terms and conditions of the June payroll support in the June application form. A standard agreement in which the employer and the employees confirm the mandatory employee’s contribution of 20% is available for download in the Employer Portal as well. This agreement needs to be signed by the employer and the employees. Employers are required to upload this signed agreement as part of the application for the June payroll support.

SZV will have to control this agreement and include this in their administration of the payroll support program.

 

What is the Government’s contribution?

The graduated scale (in Dutch: staffel) that was used before, will be changed into a calculation derived from the reported percentage loss of revenue.

At a loss in revenue of 100%, this means that the contribution from Government is f 60% of the qualifying sum of wages (in Dutch: loonsommen) taking into account the percentage decrease of  revenue for June 2020 compared to June 2019.

So, the maximum government payroll support amount is a grant of 60% of the registered ZV/OV wages with a maximum of the ZV wage limit of (NAf 5.651,36 per month).

Reference is made to the following examples as described under the section “Examples how the government payroll support amount will be calculated”.


Examples how the government payroll support amount will be calculated:

An employer has to prove, based on the declared revenue (the total of the taxed- and exempted revenue) as per the comparison of the monthly TOT returns for the months of June 2019 and June 2020 that their revenue has declined by at least 20% because of the Covid-19 pandemic. Employers have to upload the applicable TOT returns when filing their June application.

Below are three examples of an organization with a monthly sum of wages of NAf 100,000.00 and a loss in revenue of 30, 50 and 70 percent respectively.

30 percent loss of revenues

This means a NEW basis of 30%:

30% of sum of wages of Naf 100,000 is a NEW basis of Naf 30,000of which 20% is the employee contribution, 60% is the government payroll support, and the employer must pay the balance of the total payroll.

Employee contribution: 20% of Naf 30,000 is Naf 6,000

Government payroll support: 60% of 30,000 is Naf 18,000

Employer contribution: Naf 100,000 minus Naf 24,000 = Naf 76,000

50 percent loss of revenues

This means a NEW basis of 50%:

50% of sum of wages of Naf 100,000 is a NEW basis of Naf 50,000 of which 20% is the employee contribution, 60% is the government payroll support and the employer must pay the balance of the total payroll.

Employee contribution: 20% of Naf 50,000 is Naf 10,000

Government payroll support: 60% of Naf 50,000 is Naf 30,000

Employer contribution: Naf 100,000 minus Naf 40,000 = Naf 60,000

70 percent loss of revenues

This means a NEW basis of 70%:

70% of sum of wages of Naf 100,000 is a NEW basis of Naf 70,000 of which 20% is the employee contribution, 60% is the government payroll support and the employer must pay the balance of the total payroll.

Employee contribution = 20% of 70,000 is Naf 14,000

Government payroll support = 60% of 70,000 is Naf 42,000

Employer contribution: Naf 100,000 minus Naf 56,000 = Naf 44,000


Application

Employers must verify the employees’ information in SZV’s registry via the online SZV Employer Portal. The correctness of this information is important as the calculation of the Payroll Support contribution is based hereon. The deadline for submitting the application is Friday August 14th.

An employer has to prove, based on the declared revenue (the total of the taxed- and exempted revenue) as per the comparison of the monthly TOT returns for the months of June 2019 and June 2020 that their revenue has declined by at least 20% because of the Covid-19 pandemic. Employers have to upload the applicable TOT returns when filing their June application.

In order to provide proof of the revenue decline, employers must submit and pay on time to the applicable authorities their monthly (i) ZV/OV declarations, (ii) Wage Tax & AVBZ tax returns and (iii) TOT tax return:

  • The declarations for the month of June 2020: declaration and payment no later than July 15, 2020 for the month of June Covid-19 stimulus payroll support. The declarations and payment of June will be used by SZV to evaluate the Payroll Support Plan for the month of June 2020.
  • The employer has to pay the monthly taxes and social premiums and have to continue paying its registered employees.
  • The submitted application will be processed internally by SZV. If there is any information missing in the application, SZV will contact the employer via the correspondence section in the Employer Portal.


Bank account

Employers must provide a Dutch Sint Maarten bank account in the application form. All payments with regards of the Payroll Support Plan, will be done by SZV in guilders (NAf) to this bank account


For which employees, the employer can receive a contribution Payroll Support Plan?

This Payroll Support Plan is not applicable for employees that were hired after April 1, 2020. The calculation of the qualifying registered ZV/OV wages is based on the employees that were already on the payroll before April 1, 2020.


Part time workers

The contribution from the Payroll Support Plan is maximized to the registered ZV/OV wages at SZV, taking into consideration the applicable part time factor if applicable.


What happens when you have submitted your application?

SZV reviews all submitted information and makes a decision on the request for the June Payroll Support Plan on behalf of the Government of Sint Maarten. This decision including the calculation of the contribution of the June Payroll Support Plan is communicated to the employer via the Employer Portal.

If SZV’s verification process cannot take place on a timely basis, SZV can proceed with payments based on its registered employees list. Any differences detected at a later time based on the late verified mutations will be paid or withheld from the subsequent month’s payroll support.

The employer can view in the SZV Employer Portal which mutations were accepted or rejected by SZV.

 

Digital Signature and non-compliance

As part of the application, employers are required to sign a digital declaration before the payment of the June Payroll Support Plan is released. This will ensure that the received contribution from the June Payroll Support Plan is based on accurate information and the obligation of the employers to continue paying their registered employees.

Non-compliance with the stipulations of the June Payroll Support Plan can lead to sanctions against the employer which include repayment of (a part) of the contribution for the June Payroll Support Plan. Non-compliance includes not paying the monthly taxes and social premiums and/or not paying the registered employees.

SZV, the Inspectorate of Taxes, Audit Team Sint Maarten (ATS) and BDO have the right to verify the accuracy of the submitted information of the employer. Future audits and adjustments on the contribution from the Covid-19 stimulus payroll support plan based on risk analysis are possible.


Objection procedure

In case of a (partial) denial of the application by the SZV, the employer has the right to submit a protest letter to the Review committee and to explain its disagreement with the decision by SZV. The Review committee will review the objections and render an advice to the Minister of Finance. The Minister of Finance’s decision is final. Objection letters are submitted via the Employer Portal.

If the Minister of Finance approves the request, the employer and SZV will be informed via the Employer Portal. SZV will process this request within 10 working days after approval by the Minister.


Employee Helpdesk

Employees will be able to contact a digital Employee Helpdesk. Employees will be able to ask questions and or request information. The email address is ssrp@szv.sx


Other conditions

As part of the application for the June payroll support program, the employer agrees that the name of the company will be published on Internet, the newspaper and the ‘Landscourant’.

If the Employer, in addition to the payroll support of June 2020 received payroll support for the month of April 2020 or May 2020, this will be published as well.

The June Payroll Support form is available as of Friday, July 31st 2020 in the Employer Portal.
Deadline to submit: August 14th, 2020

Q & A LIST JUNE PAYROLL SUPPORT

Are the new conditions applicable as of July 2020 or as of June 2020?

The new conditions are applicable as of June 1st, 2020 and these conditions are applicable for the payroll support of June 2020.

Will each employee have to sign an individual agreement?

No. Employees need to sign the Agreement Format that is available in the Employer Portal. The employer will have to upload the signed document with all the employees’ signatures to the Employer Portal.

Do we have to upload the employee’s ID cards or passports?

No.

The Payroll for June has already been processed. How do I correct that?

The correction needs to take place in the payroll that is currently open (July or August). The correction needs to be submitted in a manner that is verifiable to SZV and auditors.

Does the employee have to agree to a 20% salary cut?

Contributions from the employees are made from the total remuneration package and not necessarily solely at the expense of the salary part of the remuneration package. For example, vacation allowances, vacation days, secondary benefits and working hours can be contributed as well.

Does the 20% employee contribution apply to workers that have a minimum wage salary?

No.

Once employees agree to a 20% contribution via their salary, do we as employers update the new reduced gross salary in the employers portal or will SZV base the calculation on the employee’s regular gross salary?

The gross salaries stay the same. In light of the government’s payroll support plan, the employees are asked to make an individual contribution. All other labor agreements remain the same.

Does the Employer have to inform the Labor office of the Employee’s 20% contribution?

No

Do all the employees have to sign the Agreement?

Yes.

What if there are employees that DO NOT sign the agreement?

The employer will not be eligible for June payroll support.

If an employee’s wages will be under the ZV wage limit, will this person be included in the ZV insurance?

No.

The gross salaries stay the same. In light of the government’s payroll support plan, the employees are asked to make an individual contribution. All other labor agreements remain the same.

Do we have to declare corrected ZV/OV/ IB/AOV/ AWW/ AVBZ for the month of June?

No.

The gross salaries stay the same. In light of the government’s payroll support plan, the employees are asked to make an individual contribution. All other labor agreements remain the same.

My payroll for June is closed, what do I do?

The corrections need to take place in the payroll that is currently open (July or August). These corrections need to be submitted in a manner that is verifiable to SZV and auditors.

Should we submit a mutation to SZV for the change in wages / working hours / working days for June?

No.

The gross salaries stay the same. In light of the government’s payroll support plan, the employees are asked to make an individual contribution. All other labor agreements remain the same.

Application Steps

Step 1: Prepare Documents

Provide digital copies of all documents outlined in “What are the requirements for the Payroll Support Plan?”

If you do not have a digital copy of the requested documents, please use a scanner or your mobile phone to take a photo of said documents. Ensure that the quality of the documents (scanned, digital and photo images) are legible and clearly identifies the information required. 

Step 2: Create an Account

In order to apply for Business Payroll Support you must create an account for the SZV Employer’s portal.

Step 3: Apply Online

 

To start the application process, log into the SZV Employer’s portal and follow further instructions.