NASSAU, BAHAMAS — TriblockHR Chief Executive Officer (CEO) Duran Humes is urging Bahamian companies to take advantage of digital and human resources software as a way to maintain accuracy and remain compliant as the implementation date for the new National Insurance Board (NIB) rate increase nears.
“It is extremely important at this given time that more businesses consider digital and HR software as we near the new NIB rate increase,” Humes said. “Given the fact that NIB is making great efforts on the enforcement side of things, it has been and will continue to be paramount for companies to keep accurate and easy-to-obtain records when asked. NIB is set to raise rates every 2 years in the middle of the year (summer) and for most small/micro businesses whose fiscal cycle is January to December may be thrown off by the increase in the middle of the year.”
Humes added, “To prepare for the upcoming increase, I suggest companies conduct an assessment on what your new estimated cost will be from the employer side so that they can better manage it. I’d also suggest speaking with your staff to help them understand that their take home pay will be less and what that means for their life planning.”
Effective July 1, the NIB contribution rate will increase from 5.9% to 6.65% for employers, while the percentage rate will increase from 3.9% to 4.65% for employees.
Humes said he considers digital to be the future when it comes to helping companies remain compliant with tax increases and payments like NIB.
“As time goes on, we can expect our labor laws and tax system to become even more complex than it already is,” Humes added. “So much so that handling your taxes and labor relations becomes a very laborious task that takes away from HR’s important work which is focusing on the people.”
“When you have to deal with gratuity pay, sick pay, vacation pay, regular pay, injury reporting, etc., the big task of keeping everything accurate becomes somewhat overwhelming, even more so as your organization increases in size. This does not have to be so much of a burden to track and maintain; some use elaborate Excel spreadsheets, and others utilize built-for-purpose (TriblockHR) human resources software. By doing that, you greatly decrease the amount of effort required to do simple things like submit your NIB C10 contributions or to autofill and submit a B44 work-related accident form.”
TriblockHR Chief Operations Officer Keith Roye II said with the July 1 implementation date nearing it’s important for companies to understand ‘the numbers’ in an effort to remain compliant.
“It is very important for a few key reasons,” Roye said. “Knowing the exact rate increases allows companies to accurately forecast their expenses and budget accordingly. For example, an increase in NIB contributions directly affects payroll costs. Companies need to account for these changes in their financial planning to ensure they can meet their obligations without disrupting their financial stability. Additionally, companies need to communicate any changes in deductions to their employees effectively. Understanding the details of the rate increases helps in explaining these changes to employees, which can affect their net income and personal financial planning.”
TriblockHR, the HR software development and management company headed by Humes and Roye, has rolled out a platform and educational tools to better equip companies for the change. Humes said, “TriblockHR helps companies stay compliant by doing all of the heavy lifting automatically. Calculations, reporting, and all of the necessary checks and balances are in place to ensure that any company that uses the software is able to confidently say it is fully compliant. Even when it comes to paying third-party or external deductions, Triblock is built to facilitate that as well, whether it’s an employee’s auto loan, mortgage, or pension contributions. Once payroll is completed, everything is handled for you.”
