What’s new?
For the month June 2020 the employees of the businesses that apply for the Business Payroll Support should also make a contribution of 20% to the payroll support plan.
The total Business Payroll support amount will be determined based on the actual loss of revenue on a one to one ratio.
The list of exempted business sectors will no longer be applicable for the month June 2020. The names of the businesses that have received Payroll Support will be published on the internet, in the newspapers and the National Gazette.
Adjustment to the role of the advisory committee. In the previous text of the Temporary Regulation article 8 par 6 made reference to the obligation of SZV to follow any advice given by the advisory committee. In the amended text the advisory role of the advisory committee is rephrased.
Employees’ contribution
For the month June 2020 the employer and the employees should reach a written agreement based on which the employee will also contribute to the payroll support. This agreement should be kept on file as it can be requested by SZV. This contribution should amount to 20% of the employee’s remuneration package and could be obtained by reduction of other benefits besides the (base) salary. We recommend careful consideration of the applicable labor law stipulations, prior to negotiation of (temporary) changes to the employment agreements.
Calculation Payroll Support
It is expected that the employer shall carry at least 20% of the wages and receive financial support of 80% under the Business Payroll support plan. This 80% will be carried by:
- SZV for 60%, and
- the employees for 20%.
For the month June 2020, the total amount of Business Payroll support will be linked to the actual loss of revenue on a one to one ratio. If the business has suffered a loss of revenue of 30%, the total Business Payroll support shall amount to 30% of the wages (as registered at SZV).
If the wages (as registered at SZV) would amount to for example $100,000 and the business would have suffered 30% of revenue in the month June 2020 the calculation would be as follows.
The total Business Payroll support would amount to 80% of the $30,000, which amounts to $24,000, and this amount would be divided between SZV and the employees’ contribution. The aforementioned example would result in:
$18,000 (60% of $30,000) paid by SZV to the employer and
$6,000 (20% of $30,000) financed out of the employees’ contribution.
List of exempted business sectors
Initially two lists of exempted business sectors were published. The first list excluded employers in certain business sectors from the Business Payroll Support program (applicable for loss of revenue in the months March through June 2020). The second list excluded employers from the Lockdown Payroll Support program (applicable for loss of revenue in the month April 2020). Based on the amended regulation this list will no longer apply for the month June 2020.
Publication of business names
Upon completion of the application form written consent will be sought from the employers that apply for the amended Business Payroll Support for the month June 2020. Based on this unequivocal declaration the employer gives consent to publish its business name on the internet, in newspapers and the National Gazette. The aforementioned written consent will also apply with retroactive effect for publication of the business name for the previous months in case the business has received Payroll Support for these months.
The Advisory Committee
The previous text of article 8 par 6 of the Temporary Regulation on the SSRP included an obligation for the executive body (SZV) to follow advices given by the Advisory Committee on objection letters and disputes lodged by applicants for SSRP support. The obligation for SZV to follow advices given by the Advisory Committee is not in accordance with article 70, par 1 of the National Ordinance on Administrative Proceedings (in Dutch: Landsverordening Administratieve Rechtspraak). This omission has been addressed in the updated version of the Temporary Regulation on the SSRP.
In closing
We trust this information is helpful to you and recommend following www.ssrp.sx regularly for updates.
Sint Maarten Stimulus & Relief Plan
ARTICLE29 March 2021