This is the information we currently have available and we'll try to keep it up to date with any further changes.
CINSF rate change
MFEM have officially advised the stages they are implementing to help everyone deal with the COVID-19 pandemic.
This document explains the steps being taken, including a reduction of CINSF contributions for both employers and staff, from 5% to 3% for paydays between 1 April to 30 June 2020.
This has been extended - from 3% to 1% for a further 3 months for 1 July to 30 Sept 2020 31 Dec 2020 30 June 2021 then back to 5%.
Tax-free thresholds have increased from 1 July to $12800 and again from 1 January 2021 to $14600 (these rates have been implemented in our latest updates and will take effect automatically for paydays on or after these dates).
http://www.mfem.gov.ck/images/MFEM_Documents/COVID-19/Cook_Islands_Economic_Response_to_COVID-19.pdf
When your payday falls on or after 1 April 2020, please make the following changes in your payroll:
- Settings..CINSF: change rates from 5% to 3%, then use the Tool options to push the rates changes out to all staff, or if it applies to some but not others...
- Each employee..CINSF: change rates from 5% to 3%
Please do NOT make the changes for paydays earlier than 1 April 2020.
When your payday falls on or after 1 July 2020, please make the following changes in your payroll:
- Settings..CINSF: change rates from 3% to 1%, then use the Tool options to push the rates changes out to all staff, or if it applies to some but not others...
- Each employee..CINSF: change rates from 3% to 1%
Please do NOT make the changes for paydays earlier than 1 July 2020.
When your payday falls on or after 1 July 2021, please make the following changes in your payroll:
- Settings..CINSF: change rates from 1% to 5%, then use the Tool options to push the rates changes out to all staff, or if it applies to some but not others...
- Each employee..CINSF: change rates from 1% to 5%
Please do NOT make the changes for paydays earlier than 1 July 2021.
Additional resources:
https://www.cinsf.com/news/cinsf-change-to-contribution-rates-july-2021