NATIONAL Housing Trust (NHT) is reiterating its call for micro, small, and medium-sized enterprises (MSMEs) and registered charitable organisations facing financial difficulties to apply for the NHT Employer Arrears Amnesty Programme.

The programme offers a waiver of principal contributions, providing relief to those struggling to make payments. The renewed call comes as the NHT anticipates additional financial strain on some organisations impacted by Hurricane Beryl.

“I think it’s the first time NHT has really offered an amnesty, working through the waiver of principal contributions,” said Dameon McNally, the assistant general manager with responsibility for compliance in the contribution management department at National Housing Trust (NHT).

According to McNally, the driving force behind the amnesty programme is the vulnerability of micro, small, and medium-size enterprises (MSMEs) to the myriad economic shocks affecting the nation’s economy. These enterprises are disproportionately affected by crises such as hurricanes and the pandemic, despite efforts to cushion the blow. The pandemic’s aftermath has had a devastating impact on the economy, with MSMEs bearing the brunt of the damage. As such, National Housing Trust (NHT) decided to offer an amnesty to a specific category of employers. He further added that the NHT receives various requests to waive outstanding interest, but such waivers are not typically granted as there is no general waiver process in place — unlike with other statutory bodies. Any waiver of interest or contributions outstanding requires approval from the board, which has delegated authority from the portfolio minister who is the prime minister. Consequently, individuals submit written requests for waivers of interest outstanding which are then considered by the board only if there are extenuating circumstances warranting a favourable review.

NHT began accepting applications in mid-June of this year although the intention was to start the process in April, coinciding with the new financial year, following its announcement by Prime Minister Andrew Holness during last year’s budget debate. However, the NHT needed more time to finalise the details before implementation.

“We were working out all the details of it, and we really couldn’t start until mid-June. It should have been effective in April but implemented in mid-June,” McNally explained to the Jamaica Observer.

The amnesty deadlines are categorised into three phases to assist employers in settling their outstanding contributions. According to the programme’s structure, the first phase, dubbed early settlement incentives, runs until September 30, mid-term relief from October 1 to December 31, and late settlement between January and March 2025. Under the first phase NHT is offering a 100 per cent waiver of interest and 20 per cent of outstanding employer contributions.

“It’s not relief of contributions, all contributions; it’s 20 per cent of employers’ contributions. So, what happens is that employees contribute two per cent and employers contribute three per cent. Now, the NHT is saying that for the first band, [if] you pay up all the employees’ contributions and 80 per cent of employers’ outstanding contributions by September 30, 2024 then you will get a waiver of 20 per cent of employers’ contributions and total interest outstanding,” clarified McNally.

The programme’s subsequent phases offer varying levels of waivers, depending on the settlement timeline. By December 31 employers can secure a 100 per cent waiver on outstanding contributions while those who miss this deadline can still benefit from a waiver of employer interest outstanding between January and March 2025, provided they pay all outstanding contributions.

Since its implementation in June the programme has experienced slow growth, with the NHT receiving only about 10 applications despite multiple inquiries. McNally acknowledges that the culture tends to be last-minute but believes the expression of interest indicates that employers are putting plans in place to pay off the principal amount and take advantage of the programme.

According to the NHT, approximately 8,200 organisations are eligible for the programme, which targets those with 50 staff members or fewer or annual earnings of less than $425 million. Typically, late contributions attract a 20 per cent interest penalty annually, but the programme offers a waiver of interest on arrears up to December 31, 2023.

McNally suggests that some delays may be attributed to Hurricane Beryl but he remains optimistic and hopes that by next March NHT will collect close to $1 billion in arrears, with a goal of recovering at least 50-60 per cent of the outstanding amount.