Malta | Covid-19 Self-Employed SSC payment issues
On the 20th April 2020 the Commissioner for Revenue issued a Notice on Social Security Payment Implications on the Covid-19 Wage Supplement for Self-Employed persons once received.
COVID Wage supplement for Self-Employed Persons
The wage supplement (€800 or less according to eligibility) is the government’s contribution to self-employed persons whose businesses have been negatively affected by the Covid-19 pandemic. This supplement is replacing or supplementing the normal income of the self-employed hence it is taxable in the hands of the recipient.
SSC Implications for Self-Employed Persons
Government will give €800 (or less according to eligibility) to each eligible self-employed person though it will retain 10% SSC (€80 or less) as prepaid SSC.
The self-employed person will have to calculate what is due in totality to the Commissioner for Revenue at the normal SSC rates for all the weeks covered by the respective SSC instalment and deduct therefrom the amount of SSC prepaid to CFR on the PT1 Form.
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Employed Persons who are liable to pay Class 2 SSC
As stipulated by the Social Security Act, certain employees may be liable to pay Class 2 rates even though they are employed persons (this relates to specific individuals, such as certain directors). The employer may be eligible for the wage supplement grant on behalf of these persons where the 10% SSC shall be retained and treated as prepaid on the FS5.
[icon name=”link” iconsize=”large” iconcolor=”” background=”true” backgroundcolor=”” ] Notice on Social Security Payment Implications on the Covid-19 Wage Supplement for Self-Employed