Employer Tax Contributions

Tax Type	Rate	Base
National Insurance Scheme (NIS)	3%	Gross Salary (up to JMD 5 million annual ceiling)
National Housing Trust (NHT)	3%	All taxable emoluments
Education Tax	3.5%	Wages (after NIS/pension deduction)
HEART Trust/NTA	3%	Total wage bill (gross emoluments exceeding JMD 14,444 monthly)

Filing & Compliance

• Monthly statutory deductions (PAYE, NIS, NHT, HEART, Education Tax) are due by the 14th day of the month following the deduction.
• Employers must file annual returns (Form P24/SO2) summarizing emoluments and contributions by March 31st of the following year.
• Employers must provide employees with a Statement of Earnings (Form P2A) by February 15th.

In Jamaica, employers deduct statutory and income tax deductions from employee salaries, remitting them to Tax Administration Jamaica.

Income Tax

• Threshold: The annual income tax threshold is JMD 1,700,088. Income below this threshold is not taxed. This translates to monthly, fortnightly, and weekly thresholds of JMD 141,674, JMD 65,388, and JMD 32,694, respectively, for the 2024/25 fiscal year (April 1, 2024 - March 31, 2025).
• Rate: Income above the threshold is taxed at 25%. Those earning above JMD 6,000,000 annually are taxed at 30%.
• Part-time Employees: Taxed at 25% on all emoluments, but can claim a refund by filing an annual return (S04).
• Other Income: Overtime, bonuses, commissions, and similar payments are added to regular pay for tax calculations.
• Reverse Tax Credit: A JMD 20,000 tax credit is available for registered taxpayers earning less than JMD 3,000,000 annually. This is a one-time credit and has been implemented.

Statutory Deductions

• National Insurance Scheme (NIS): Employees and employers each contribute 3% of insurable income up to a maximum of JMD 1.5 million annually. Self-employed individuals contribute 6% up to a maximum of JMD 3 million annually. However, the income threshold increased to JMD 5 million per year for employed and self-employed individuals effective from April 1st, 2022.
• National Housing Trust (NHT): Employers contribute 3%, and employees contribute 2% of all taxable emoluments. Employee contributions are refundable after seven years, while employer contributions are not. Expatriate employees may apply for a refund upon permanent departure.
• Education Tax: Employers contribute 3.5%, and employees contribute 2.25% of earnings after NIS and approved superannuation fund deductions. These contributions are not refundable.
• Human Employment and Resource Training (HEART) Trust Levy: Employers contribute 3% of gross emoluments. This contribution is not applicable to employees.

General Information

• Payment Deadline: Monthly statutory deductions (S01) are due on the 14th of the following month. If the 14th falls on a weekend or public holiday, the due date is the next business day.
• Employment Tax Credit: Employers who file and pay their monthly payroll deductions (S01) on time may claim a credit of up to 30% of the income tax payable for the year for unregulated entities.

It is crucial for employers to stay updated on any changes in tax regulations, thresholds, rates, and deadlines to ensure accurate payroll deductions and compliance. Contact the Tax Administration Jamaica (TAJ) or a qualified tax professional for the latest information or clarifications. This information is current as of February 5, 2025, and is subject to change.