Official Guidance on the COVID-19 BEST Cash Grant Application Process
The Technical Advisory document issued by the Tax Administration Jamaica (TAJ) on June 15, 2020, outlines the procedures and eligibility criteria for the Business Employee Support and Transfer of Cash (BEST Cash) Programme. This initiative aims to provide temporary financial assistance to tourism sector businesses impacted by the COVID-19 pandemic, specifically those registered with the Tourism Product Development Company (TPDCO).
Understanding the Purpose and Scope of the BEST Cash Grant
The primary objective of the BEST Cash Grant is to support registered tourism businesses in retaining employment during the economic downturn caused by COVID-19. The grant is designed to offer financial relief based on the number of employees retained on payroll as of March 10, 2020, with a focus on employees earning below the income tax threshold of $1.5 million annually. The programme ensures that eligible businesses can continue their operations while safeguarding employment levels.
Eligibility Criteria for Applicants
To qualify for the BEST Cash Grant, applicants must meet several specific conditions:
- Registration with TPDCO: The business must be registered with the Tourism Product Development Company. Verification is conducted through the TPDCO Data accessible via the WECARE System.
- Employee Payroll Evidence: The business must demonstrate that the employee was on the payroll during March 2020, confirmed via the S01 payroll submission for that month.
- Retention of Employees: The applicant must provide evidence that employees were retained on payroll during April, May, and June 2020, with no P45 registration for the relevant months.
- Minimum Net Pay: Employees must have a net monthly income of at least $18,000, as verified through the S01 form and the calculation of net pay after statutory deductions.
- Annual Income Limit: The employee’s annualized earnings, excluding tips and bonuses, must not exceed $1.5 million, confirmed via the RAiS validation of the S01 and Schedule A forms.
Procedures for Verifying Employee Earnings
The determination of an employee’s annualized earnings relies on the information submitted in the S01 and Schedule A forms by the employer. The Revenue Administration Information System (RAiS) cross-checks these submissions to ensure compliance with the income threshold. The gross emoluments received in cash for March 2020, detailed in Column F of the S01 form, serve as the basis for calculating the annualized income.
Application Submission and Payment Timeline
Employers must submit their applications exclusively through the wecare.gov.jm portal. The process is a one-time submission per applicant, covering the period of March to June 2020. Once approved, payments are disbursed directly to the verified bank account of the business by the Accountant General’s Department (AGD).
The grant provides up to $18,000 per eligible employee per month, with a maximum total of $54,000 per employee over three months. Payments are made in accordance with the statutory obligations of the employer, including contributions to the National Insurance Scheme (NIS), National Housing Trust (NHT), Education Tax, and HEART Trust/NTA.
Employer Responsibilities and Statutory Contributions
Employers are required to make minimum gross payments of $19,392 to each employee, with statutory deductions totaling approximately $1,392.90, including NIS, NHT, Education Tax, and HEART contributions. The employer's statutory obligations arising from the grant payments must be remitted directly to TAJ, ensuring compliance with the legal framework governing employment and taxation.
Re-Filing and Amendments
Employers who have paid employees $18,000 without deducting taxes are mandated to re-file their S01 forms for March, April, May, and June 2020, reflecting the correct gross emoluments and statutory contributions. These amendments are crucial for accurate record-keeping and compliance with tax regulations.
Summary
The COVID-19 BEST Cash Grant offers a targeted financial support mechanism for tourism sector businesses, emphasizing employment retention and compliance with tax and statutory obligations. Employers seeking to benefit from this programme must ensure their registration, payroll evidence, and earnings verification are thorough and accurate. The application process is streamlined through the government portal, with payments directly transferred to verified bank accounts, facilitating quick and transparent support during these challenging times.
