Reporting & Payment for Businesses without Employees

Depending on whether or not you have employees, Social Security & Healthcare Fund contributions are reported and paid differently. In this section, we will consider how business without employees should report and pay their quarterly contributions.

If your business has employees, you can read how Businesses with Employees report and pay their quarterly contributions.

Calculating the Owner's Gross Wage

When reporting their Quarterly Contributions to the SSA, owners of businesses without employees are required to submit copies of all GRT Reports that were filed to the Division of Revenue & Taxation. The gross revenue earned during that quarter is important because this amount becomes the basis for calculating the owner's reported gross income or wages.

The owner gross income per quarter is calculated as 10% of the business's reported total gross revenue in a year, whether or not the owner actually received that income. If the total gross revenue reported to Division of Revenue & Taxation was $24,000 for a year, your gross income or wage is $2,400 ($24,000 x 10%).

SS/HCF Contributions & Owner Share

Owners of businesses that do not have employees are considered both employer and employee at the same time. Therefore, they are required to contribute 12% of taxable income (wages not exceeding the maximum remuneration per quarter as indicated in the Maximum Remuneration table) for Social Security and 5% of total gross wages for the Healthcare Fund.

If you own multiple businesses that do not have employees, then the owner share should be filed and paid under the company with the highest reported gross revenue. If you make more than $10,000 in gross annual revenues, you are required (mandated under the Law) to pay this owner share. Businesses that make less than $10,000 in gross annual revenues have an option to pay.

Reporting and Payment Deadlines

The payment of SS & HCF contributions differ between businesses making more than $10,000 in annual gross revenues and businesses making less than $10,000 in annual gross revenues. Click on any of the following two topics to learn more.

  • Businesses Making MORE than $10,000 in Annual Gross Revenues

    Businesses without employees and are making more than $10,000 in gross annual revenues are required to report and pay Social Security and Healthcare Fund contributions at the end of each calendar year, ending December 31. Therefore, reports and payments for a business that is making more than $10,000 a year is due on or before January 31.

    Effects on your Eligibility for National Health Insurance

    Choosing to pay contributions at the end of the year will affect your eligibility for HCF benefits during the current year. Since your contributions come in at the end of the year, you will not be eligible for National Health Insurance during the current year. Also, if you choose to pay for all 4 quarters at the end of the year, you will only get two quarters of NHI coverage, since the coverage period for 1st and 2nd Quarter has passed.

    The tables below display NHI payment options that are open to businesses without employees:

    Option 1
    Pay 4 Quarters of SS & HCF Contributions at the end of the calendar quarter (due on or before January 31)

    RESULT:
    NHI coverage period for the previous year's 1st and 2nd Quarter NHI Coverage has passed, so NHI coverage will only last for 6 months: April through September.

    Option 2
    Voluntarily purchase NHI on a quarterly basis:
    The amount you must pay to voluntarily purchase NHI is 5% of the 10% of your reported annual gross revenue.
    Pay SS & HCF Contributions at the end of the calendar year (due on or before January 31)

    RESULT:
    You will be eligible for NHI coverage as soon as you pay for 2 consecutive quarters. If you voluntarily purchase NHI for 1st Quarter before the April 30 deadline, as well as for 2nd Quarter before the July 31 deadline, then your NHI will begin October 1. If you continue to voluntarily purchase insurance on a quarterly basis, then you NHI coverage will run through to September 30 of the following year.

    When you report and pay for SS & HCF contributions at the end of the year, the SS office will account for any voluntary purchases of NHI and voluntary deposits to MSA that were made during the previous year and adjust your HCF contribution.

    Option 3
    Pay SS & HCF Contributions at the end of every quarter, based on total gross revenue for that quarter

    RESULT:
    You will be eligible for NHI coverage as soon as you pay for 2 consecutive quarters of HCF contributions. If you pay HCF contributions every quarter beginning with the 1st Quarter of the calendar year, your NHI coverage will begin October 1. As long as you continue to pay your HCF contributions every quarter, then your NHI coverage will run through to September 30 of the following year.

    There will be no adjustments made at the end of the calendar year.

    Medical Savings Accounts

    If you opt not to pay HCF contributions on a quarterly basis, you will not have any contributions that go into your individual MSA. If they would like to have an MSA, you may voluntarily deposit into your Medical Savings Account (minimum of $10.00 per deposit).

  • Businesses Making LESS than $10,000 in Annual Gross RevenuesOpen or Close

    Businesses without employees and are making less than $10,000 in gross annual revenues have the option to file Social Security and Healthcare Fund contributions on a quarterly basis or file at the end of each calendar year, ending December 31. Payment of contributions is optional.

    If you decide not to pay contributions, you will not be entitled to SS or HCF benefits. However, you may volunteer to participate under both programs (fund) SS and HCF by paying 5% of the 10% of your reported quarterly gross revenue to enable you to be insured under the HCF  for the benefits of inpatient and off-island care. This form of payment must be paid on quarterly basis to ensure uninterrupted NHI coverage. For SS contributions on the other hand you must pay 12%  of the 10% of the reported annual gross revenue, you may choose to pay on a quarterly, however, a recalculation at the end of the year must be made to ensure full compliane of the Law.

    You may also voluntarily depositing into your Medical Savings Account (minimum of $10.00 per deposit).

How to Fill your Quarterly Report Form

Below is a sample of how a business without employees should report and pay SS & HCF Contributions with the Quarterly Report Form.

Total Gross Revenue
The total gross revenue must match the gross revenue that is reported to Division of Tax & Revenue. This amount is important for businesses without employees because this amount becomes the basis for calculating the owner's reported gross wages.
Owner's Share
The owner share for a business without employees is presumed to be $25% of the business's reported total gross revenue. In this case, the gross wages would be $6,000 (or 25% of $24,000)
SS Taxable Wages
The maximum taxable wage subject to SS tax is currently $5,000 per quarter. This will be the basis for how much SS tax must be paid. There is no maximum on how much gross wages is subject to HCF tax.
SS Tax
Calculate 12% of the amount found in column 4 which is the "wages subject to SS Tax". Remember that $5,000 is the maximum taxable SS wage.
HCF Tax
HCF tax is 5% of gross wages, with no maximum ceiling. In this case, HCF tax is $300 or 5% of $6,000.
 
Quarterly Report Form with No Employees