Proshare Logo
   Market Date: 22-04-2014   
Agriculture All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs STOCKPICKS Taxation Telcos Travel & Tours Unlisted Stocks World of Business

Tax Alert - Employee's Compensation Act

Category: Taxation


  Read (3365)
Tax Alert - Employee's Compensation Act

 

Wednesday, February 22, 2012 / Ehijeagbon Oserogho

Here is some new information on the implementation of the new Employee's Compensation Act, 2010.
 

It does appear that NSITF has commenced the implementation of this legislation as Consultants appointed by NSITF are now contacting employers to comply with the provisions of this law.
 

In Summary, the Employee's Compensation Act requires every employer to within the first two years of its commencement make a 1% payroll employee's compensation contribution to NSITF. NSITF is mandated to administer the Employee's Compensation Fund. The penalty for non-compliance is the minimum penalty of 10% of the un-remitted 1% monthly payroll employee contribution to NSITF.
 

Contributions under the Employee's Compensation Act 2010 and the Pension Reform Act (as amended) are tax deductible expenses to the employer while the benefits under both legislations are exempted from tax in Nigeria.
 

The Employee's Compensation Act 2010 has not abrogated the Group Life Policy required under the Pension Reform Act (as amended). Employers should therefore continue to
 

(i) remit pension contributions for their employees;

(ii) take out a Group Life Policy for their employees;

(iii) remit to NSITF 1% payroll as employee's compensation contribution.
 

It will be useful if employees are kept informed of these compliance by their employer. We will avail you of any further information received.

 

Ehijeagbon O. Oserogho, Esq.
Business Solicitor & Notary Public
NSE Centre, 1 Engineering Close
2nd Floor, Suite 206, Off Idowu Taylor Street
Victoria Island, Lagos, Nigeria
P. O. Box. 56264 Falomo-Ikoyi, Lagos, Nigeria
Phone/Fax:    (+234-1) 463 7414
Office Phone: (+234-1) 481 1014; (+234-1) 765 5635
Mobile:       (+234-1) 803 326 4753; (+234-1) 765 5635
P.O.Box 56261 Falomo Ikoyi Lagos
Alt Email:
ehioserogho2004@yahoo.co.uk
Website:  
http://www.oseroghoassociates.com/



Tags: , 



Comment With Your Facebook or Yahoo! ID


Latest news


News on Taxation

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Newsletter
Contact Us
Message from CEO
Resources

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
WebTV
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

#1minNews
News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Newsletters
Discussion Forum
Policy

Subscriber Agreement
Privacy Policy
Data Policy
Disclaimer
Copyright Policy
Trademarks
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Training
Legal Support Services
Web/Technology Services
File a Complaint