Running payroll in Trinidad & Tobago means managing three key deductions: National Insurance (NIS), Pay As You Earn (PAYE) income tax, and Health Surcharge. Getting these wrong means penalties from the Board of Inland Revenue and the NIB. This guide breaks down each deduction with real examples.
National Insurance (NIS) Contributions
Both employers and employees contribute to the National Insurance Board (NIB). Contributions are based on insurable earnings up to a maximum ceiling.
| Component | Employee | Employer |
|---|---|---|
| NIS Rate | 4.2% | 8.4% |
PAYE Income Tax
PAYE is deducted based on the employee's chargeable income after the personal allowance:
| Income Band | Tax Rate |
|---|---|
| First TT$1,000,000 | 25% |
| Above TT$1,000,000 | 30% |
Health Surcharge
A fixed monthly deduction based on income level:
| Monthly Income | Employee Rate | Employer Rate |
|---|---|---|
| Up to TT$469.99/week | TT$4.80/week | TT$4.80/week |
| TT$470+/week | TT$8.25/week | TT$8.25/week |
Worked Payroll Example
Employee earning TT$12,000/month gross salary:
| Deduction | Amount |
|---|---|
| Gross Salary | TT$12,000.00 |
| NIS (Employee 4.2%) | - TT$504.00 |
| PAYE (25% on chargeable income) | - TT$1,125.00 |
| Health Surcharge | - TT$34.25 |
| Net Pay | TT$10,336.75 |
Filing Requirements
- NIS: Submit contributions to NIB by the 15th of each month
- PAYE: Remit to BIR by the 15th of each month
- Health Surcharge: Remit with PAYE payments
- TD-4 Form: Annual return due by February 28th
What VEDTECH Includes
Every instance runs standard Odoo Community with Invoicing included. You can install the other standard Odoo Community apps, such as CRM, Sales, Inventory and Website, from your instance's Apps menu.
- Create and email professional invoices with your logo
- Set up the tax rates you charge; every invoice shows the tax separately
- Record payments and issue credit notes
- Your customers view and download their invoices online
Full accounting, payroll and Caribbean tax filing are not part of VEDTECH. Talk to us about what your business needs.
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