Chapter 9: Contributions
§ 901. Employee contributions.
§ 902. Employer contributions.
§ 903. Employee refunds.
§ 904. Reporting — Social security card and number.
(1) There is hereby imposed on every employee a tax equal to the following percentages of wages received by him with respect to employment subject to this subtitle:
(a) with respect to wages paid from the effective date of this act through June 30, 1985, the rate shall be two percent;
(b) with respect to wages paid from July 1, 1985, through June 30, 1990, the rate shall be three percent;
(c) with respect to wages paid from July 1, 1990, through June 30, 1995, the rate shall be four percent;
(d) with respect to wages paid from July 1, 1995, through June 30, 2000, the rate shall be five percent;
(e) with respect to wages paid after June 30, 2000, the rate shall be six percent.
(2) The tax imposed shall be collected by the employer of the employee by deducting the amount of the tax from the wages as and when paid. Every employer required to so deduct the tax shall be liable for the payment of such tax to the Board and shall be indemnified against the claims and demands of any person for the amount of any such payment made by such employer.
Source: PL 2-74 § 401.
There is hereby imposed on every employer an excise tax, with respect to having an individual in his employ, equal to the following percentages of wages, paid by him with respect to employment subject to this subtitle:
(1) with respect to wages paid from the effective date of this act through June 30, 1985, the rate shall be two percent;
(2) with respect to wages paid from July 1, 1985, through June 30, 1990, the rate shall be three percent;
(3) with respect to wages paid from July 1, 1990, through June 30, 1995, the rate shall be four percent;
(4) with respect to wages paid from July 1, 1995, through June 30, 2000, the rate shall be five percent;
(5) with respect to wages paid after June 30, 2000, the rate shall be six percent.
Source: PL 2-74 § 402.
When a covered employee is reported with earnings in excess of the quarterly maximum and taxes on the excess are withheld and paid into the Federated States of Micronesia Social Security Retirement Fund, the excess employee tax during the four quarters ending December 31st of each year shall be refunded to the employee within 90 days of that date; provided, that the excess employee taxes are one dollar or more. No refund, however, shall be granted to the employer or employers of such employee of taxes paid by such employers on account of wages paid by them to the employee.
Source: PL 2-74 § 403; PL 5-120 § 9.
The Administration shall furnish each employer forms for recordkeeping and reporting of contributions which shall show in addition to other information specified by the Board the employer account number and the employee social security number. Numbers shall be issued by the Administration from a permanent register maintained by it. Each employer shall report quarterly, on the prescribed forms, and pay taxes due thereon to the Administration in accordance with the Board’s regulation and subject to interest and penalty for failure so to do. Each employee shall be assigned a social security number and a card bearing this number.
Source: PL 2-74 § 404; PL 5-120 § 10.