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The Jamaica Payroll System enables an organization to calculate the wages and benefits of employees. It also calculates statutory deductions. Payroll processing must be done on a regular basis, often weekly, fortnightly, or monthly. For daily wage workers, it may even be daily. Payroll calculation is an intricate process. The structure and process may differ from one organization to another. Employees contribute at 2% The Jamaica Payroll System calculates employee wages, benefits, and statutory deductions. The process must be conducted periodically and must adhere to all legal requirements. Payrolls may be processed weekly, fortnightly, monthly, or even daily for those…

The Jamaican Social Security Tax (JSSST) is a tax on both employees and employers. Employers contribute at a rate of 3%, while employees contribute at 2%. Self-employed persons pay 2% of their earnings. Employer contributions are deductible, while employee contributions are not. Employees are entitled to two weeks' paid leave per year. This amount is considered maternity leave and includes any time the employee is away from work for reasons related to pregnancy or confinement. Impact of higher employer contributions on the Jamaican Social Security Tax Higher employer contributions for Jamaican Social Security Insurance (NIS) benefits will have a negative…

Income tax credit for MSMEs The Government has announced a special income tax credit for micro, small, and medium enterprises (MSMEs) in Jamaica. This credit, which is worth $375 thousand per year, will be available to both regulated and unregulated companies. The program has been designed to help these businesses grow and compete on a level playing field with larger and more established companies. But one catch: the credit cannot be carried forward or refunded. While the measure is still in the nascent stages, it is already a significant step forward. It has already been approved by the House of…

A Jamaican corporation is taxed by the government for the profits it makes in the country. The rate of corporate tax in Jamaica depends on the type of business. Read on to learn about the types of companies and how profit shifting by multinationals affects CIT rates. Also, learn about the different exemptions to corporate tax in Jamaica. The rate of corporate tax in Jamaica The rate of corporate tax in Jamaica is currently 25 percent. Non-resident corporations are also subject to tax, though they only pay tax on income derived in Jamaica. In addition to corporate income tax, there…