SSNIT audits companies to ensure compliance with pension laws. Various difficulties can arise for organizations during these audits. In this article, we cover common issues in SSNIT audits and offer strategies to stay compliant.
Some typical issues that arise:
Inconsistent employee numbers
Auditors may detect disparities in the recorded employee count and the actual number of employees being paid. These differences suggest problems with managing employee data or fraudulent activity. This outcome could be due to an oversight failing or a deliberate attempt to save money on staff.
Inaccurate documentation
SSNIT audits often reveal inaccurate or incomplete documentation, such as missing employee records, inaccurate salary information, or incomplete contribution details.
Non-compliance with pension law
SSNIT audits often reveal cases of companies failing to meet their contribution obligation. Here are examples of non-compliance:
- Under-reporting employee salaries,
- Failing to register with SSNIT,
- Late remittance,
- Failure to remit contributions
- Excluding eligible employees from the payroll
- Incorrect deductions
Incorrect classifications
Misclassification occurs when employers classify workers as independent contractors, temporary or casual workers, enabling them to evade making pension contributions.
An additional concern emerges when expatriates do not contribute to the SSNIT scheme and cannot provide an exemption certificate showing contributions to their home country.
Not keeping up with changes in regulations
As changes can occur in the regulations and requirements of SSNIT, staying informed and making necessary adjustments is crucial. Non-compliance may occur if one does not keep pace with these changes.
Avoid such Issues
- Organizations should adopt strong record-keeping systems to avoid discrepancies. Maintain up-to-date employee records, accurately track payroll data, and ensure accurate documentation and reconciliation of contributions.
- Companies should create logical procedures for calculating and remitting contributions. Routinely examine contribution records for discrepancies and resolve them to maintain compliance.
- To avoid misclassification, organizations must adhere to established criteria when classifying workers. Consult with legal/HR or payroll professionals to determine the proper employment classification of workers to comply with SSNIT regulations.
- To keep up with regulatory updates, organizations should regularly monitor official communications from SSNIT. They should collaborate with industry associations or legal advisors and take part in training programs to stay updated on evolving requirements. Staying compliant with SSNIT regulations is possible for organizations that stay informed and make necessary adjustments.
Conclusion
SSNIT audits are critical for upholding the integrity and long-term viability of pension schemes. Addressing these common issues enables organizations to navigate SSNIT audits with ease.
By Marian Botchway
