THE National Housing Trust (NHT) estimates that employers have deducted but failed to pay over just under $2 billion that was deducted from their employees’ salaries between 2000 and 2021, according to data obtained by the Jamaica Observer under the Access to Information Act.

The NHT estimates employers have deducted and failed to remit approximately $1.69 billion in employee’s contributions. With accumulated interest, the trust said the total arrears is approximated at $1.95 billion.

Employers across a wide cross section of the economy were guilty of making deductions from employees salary and not paying it over, potentially denying their staff the benefit of a mortgage from the trust or the annual contributions request.

The security industry is the biggest culprit for making deductions from its staff’s salaries and not paying it over. The NHT response shows that industry owing $630 million for its employees.

The education sector was also guilty of deducting sums from employees salaries for NHT contribution and not paying it over to the tune of $496 million, according to the response to the Access to Information request.

The transportation sector was next on the list of failing to remit NHT contributions taken from employees salaries to the trust. Over the 2000 to 2021 period, the NHT estimates employers in the transport sector deducted $257 million from staff but did not pay it over.

Employers in the sector classified as small and medium-sized enterprises were also culpable with the practice and owe the NHT approximately $92 million in unremitted funds.

Deductions made from workers in the hospitality industry to the tune of $35 million was not paid over either at the end of 2021.

At the same time $92 million is owing in NHT contributions for people working as “professional and other services”, construction, utilities and the wholesale/retail distribution sector.

The NHT says it has employed all compliance enforcements measures at its disposal to recover the sums. These include education and awareness programmes, moral suasion, issuance of payment reminders, arrears statements, proposed payment agreements and 14 days’ demand letters (notices). It added that when these measures fail, it advances the matter to the litigation stage.

In recent months the trust brought a lawsuit against one of the security companies, Marksman, in the Revenue Court in a bid to recover $806 million in outstanding employer contributions, including interest, for the period 2000-2016.

Data from the NHT’s annual report show it collected contributions amounting to $34 billion last year, down 10.7 per cent from its peak in 2020.

During last year, the trust also refunded $6.45 billion to contributors. It has made 214,077 mortgages since inception, benefitting 225,557 individuals.