Social Security Contribution – COVID Wage Supplement
Reference is made to wage supplement being disbursed in terms of the COVID Wages Supplement scheme.
Reference is also made to notice issued by the Commissioner for Revenue (available online at https://cfr.gov.mt/en/News/Pages/2020/COVID-Wage-supplement-Payroll-Implications-NOTICE-TO-EMPLOYERS.aspx) and article number 4.1 of notice number 389 with title ‘Covid-19 Wage Supplement Scheme’, published in Government Gazette number 20,387 of 13th April 2020 , whereby it is being specified that wage supplement being paid via the employers to be forwarded to the employees, has the employee’s share of Social Security Contribution already deducted, therefore such wage supplement as paid by Malta Enterprise should be forwarded to each respective employee in full, as specified by Malta Enterprise, without deducting any further social security contribution.
Any employers who have deducted any such amounts from wage supplements already paid to their employees should pay back such deductions to their respective employees (or ex-employees), in full, by the end of September 2020.
Any such amounts of Social Security Contributions paid in excess to the Commissioner for Revenue can be claimed by the employer via the FS7 form (Annual Reconciliation Statement).
For further information on such procedure, contact the Commissioner for Revenue.
Your attention is again drawn to section 10 of the above mentioned notice number 389 with title ‘Covid-19 Wage Supplement Scheme’, published in Government Gazette number 20,387 of 13th April 2020, whereby it is being specified that holding on to funds in the form of wage supplements forwarded under the COVID-19 Wage Supplement Scheme with the obligation that such funds are forwarded to one’s employees in terms of this Scheme, is considered a criminal offence.
In terms of the same notice, Malta Enterprise is entrusted to carry out checks and verifications which may be necessary, to recover any payments of funds made in error or on the basis of false, incorrect or incomplete information, to make any necessary adjustments as a result of double funding and to request the institution of criminal procedures against any person who submits false information and/or fails to forward funds received under this Scheme to his employees as he is obliged to do in terms of this Scheme.