Deferred contributions policy guideline
15 January 2021
Quarter D 2020 contributions
Employers and self-employed individuals most affected by the public health workplace restrictions introduced in December 2020 can defer the payment of Social Security contributions for quarter D 2020, due in January 2021, for two years.
Eligibility is the same as the Co-Funded Payroll Scheme 90% subsidy, which is for:
- businesses that are required to close for part of a month as a result of the public health measures set out in the Government’s 2020 Winter Strategy
- food and/or beverage wholesalers that derive more than 75% of their income from businesses required to close for part of a month as a result of the public health measures set out in the Government’s 2020 Winter Strategy.
Employers and self-employed people that pay contributions monthly can defer the payment of the December 2020 contribution amount. Any contributions already paid for quarter D 2020 will not be refunded or deferred.
Employers that pay contributions monthly but are behind on their payments for quarter D should arrange a payment plan over an appropriate period, according to their circumstances.
Class 2 people who defer their contributions will have full entitlement to contributory benefits for the period of their deferral. However, the value of any benefit claimed in respect of the deferred period will be due for repayment if the contribution is not paid by the end of the deferral period.
The Social Security Minister updated the Social Security (Contributions) (Covid-19) (Jersey) Order 2020 on Friday 8th January to provide for this quarter D deferral.
Whether you’re deferring payments or not, it’s essential that you continue submitting your schedule so that your employees receive a contribution record and you can access the coronavirus Government Co-Funded Payroll Scheme.
All businesses and individuals (including those who are self-employed) who can maintain their usual payment schedule or a reduced payment schedule, without putting their business at risk, or laying off staff, are asked to continue making payments.
If you want to apply to defer your payment for the D quarter email the Contributions Team or call +44 (0) 1534 444444.
Quarter C 2020 contributions
The Social Security Law requires employers and class 2 people (mainly the self-employed) to pay their contributions. The contributions for this quarter have not been deferred.
Employers and class 2 people that are struggling to pay their contributions for quarter C should email the Debt Management Team or call +44 (0) 1534 440088 to arrange a manageable repayment plan.
Note that for class 2 people, contributions that are received after the due date will be recorded as late payments and this will affect their entitlement to contributory benefits.
Quarter A and B 2020 contributions
Following significant public health measures introduced in March 2020 to control Covid-19, Ministers agreed to support employers with less than 80 employees and self-employed people by automatically deferring contributions payments for quarters A and B 2020 for up to two years.
Employers with more than 80 employees were also able to defer their contributions payments if they contacted the Contributions Team and provided appropriate reasons for needing to defer.
Class 2 people who deferred their contributions will have full entitlement to contributory benefits for the period of their deferral. However, the value of any benefit claimed in respect of the deferred period will be due for repayment if the contribution is not paid by the end of the deferral period.