Most employers know that they are required to register their businesses and employees with the National Social Security Authority (NSSA).
However, there are other requirements in relation to NSSA that some may be less aware of. For example employers are required to notify NSSA of changes in their details and their employees’ employment statuses.
They are also required to keep records with relevant information on each employee that they may have to produce on demand to NSSA inspectors.
There are also forms to complete and return each year in respect of both the pension scheme and the Worker’s Compensation Insurance Fund (WCIF). Some employers may be uncertain what obligations they have, if any, in relation to casual employees and NSSA contributions.
Employers are required to register with NSSA within 30 days of becoming an employer by completing and submitting to NSSA registration form P2. They are also expected to ensure each employee completes employee registration form P3. Both forms can be obtained from any NSSA office.
These registration forms are used to register the employer and employee for both the Pension and Other Benefits scheme and the Accident Prevention and Worker’s Compensation Insurance Fund scheme.
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After processing the employer registration form, NSSA notifies the employer of its social security registration number (SSR number) and employer industry code (EC).
The employee is allocated a social security number, which remains the employee’s social security number for life.
If an employer has subsidiary businesses within the same industry, the different businesses are normally included in the one registration with the one SSR number
If an employer has businesses in different types of industries, then they must be registered separately, even if they are located in one area, in order to ensure an accurate insurance rating, since the WCIF premium rate varies according to the industry sector based on risk analysis.
The employer must notify NSSA in writing of any changes in address, business name or designation and closure of the business or branches. The employer must also notify NSSA in writing on ceasing to be an employer, resuming being an employer, commencement of a business and the opening of a new branch.
If the employer takes on an employee who is already a member of NSSA’s social security schemes and therefore already has a social security number, form P4c should be used to notify NSSA and update the employee’s employment history.
The same P4c form should also be used to notify NSSA when an employee leaves the job or dies. The employer is also expected to notify NSSA in writing if there are any changes to an employee’s name, national identification number, addresses or beneficiary details. Proof of the changes, where necessary, should accompany the notification.
Employers will be familiar with the P4a form. This is the remittance advice form that has to accompany the monthly contributions to NSSA.
At the end of each year the employer is expected to complete the P16 form that is for reconciling Pension and Other Benefits scheme payments made during the year and ensuring the accounts of individual employees are credited correctly.
NSSA supplies the form with a list of employees, their social security numbers, the date of commencing employment and, where applicable, cessation date. The employer is expected to fill in the blanks on the form and return it. Should NSSA not send the employer the form, the employer is still obliged to send in the annual return.
The employer is also required to complete and return a Worker’s Compensation Insurance Fund wage declaration form. The form is normally posted to the employer by NSSA.
Its purpose is to assess the employer’s risk and come up with the rate the employer should use to pay premiums the following year.
Employers are required to maintain a record in respect of every employee that must include the employee’s social security number, national identity card number, name, date of birth and date of commencement of employment, as well as the date and amount of each wage or salary payment, the amount deducted from basic earnings in each contribution month and the employer’s contribution each month.
In addition the employer must keep a summary record of the number of employees and total wage bill each month.
When an employee or former employee or his or her surviving spouse or other dependant wishes to claim a benefit under the Pensions and Other Benefits scheme, the employer is required to fill in sections D and E of the P9/10 claim form.
When an accident occurs at the workplace that causes serious injury to an employee resulting in the employee being unable to work for one day or more, then the employer should report the accident to NSSA by completing and submitting the WCIF 14 form within 14 days of the accident occurring.
The employer also has an obligation to comply with legislation designed to prevent or minimise the likelihood of workplace accidents. Employers should ensure that every employee, regardless of the employment period, even if it is only a few hours, is covered by the Worker’s Compensation Insurance Fund. An accident can happen at any time.
Employees contracted for periods of less than 18 days in a month do not contribute to the Pensions and Other Benefits scheme.
Talking Social Security is published weekly by the National Social Security Authority as a public service. There is now a weekly radio programme, PaMhepo neNssa/Emoyeni leNSSA, discussing social security issues every Thursday at 6.50pm on Radio Zimbabwe. Readers can email issues they would like dealt with in this column to: mail@mhpr.co.zw or text them to 0735 041 278. Those with individual queries should contact their local NSSA office or telephone NSSA on (04) 706517-8 or 706523-5.