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HomeNewsPAYE: Out of Court Settlement, NSITF Pays N62m to Plateau Workers

PAYE: Out of Court Settlement, NSITF Pays N62m to Plateau Workers

The Nigeria Social Insurance Trust Fund (NSITF) and the Plateau State government have chosen to withdraw their ongoing tax dispute from the Tax Appeal Tribunal and, instead, established a four-member technical committee to address the issue.

The newly formed committee comprises Paul Yakubu and Markus Chollom from the Plateau State Internal Revenue Service (PSIRS), as well as Kwatmen Mattias and Oche Samson representing the NSITF. The committee has been given a one-week deadline to deliver its findings and recommendations.

This decision comes following the NSITF’s payment of N62 million as the backlog of Pay As You Earn Tax (PAYE) owed by its regional and branch staff members to the Plateau State Internal Revenue Service (PSIRS).

Nwachukwu Godson, General Manager of Corporate Affairs at the NSITF, confirmed this development in a statement released in Abuja.

Jim Pam Waya, the Executive Chairman of PSIRS, expressed his appreciation for the NSITF’s efforts in settling the decade-long PAYE arrears to the state. He acknowledged the NSITF’s request for an out-of-court settlement of the ongoing tax dispute and pledged PSIRS’s support for the implementation of the Employee Compensation Scheme (ECS) for the benefit of workers in the state.

Waya also expressed disappointment that PSIRS had not fulfilled its 1% contributions to the employee compensation scheme since registering for it in 2012, but he assured the NSITF of corrective action.

He emphasized the importance of the ECS, highlighting its significance in providing social security for workers and their dependents in case of work-related accidents or fatalities. Waya articulated his vision to realign PSIRS with revenue generation initiatives and to actively participate in programs such as the ECS to enhance the welfare of the state’s employees.

Waya further stated that PSIRS would revisit its participation in the employee compensation scheme and initiate payments soon.

Martin Kuku, the Regional Manager of the NSITF in Jos, called for a collaborative partnership between the two organizations. He emphasized the NSITF’s commitment to fulfilling its responsibilities to both the government and workers in Plateau State.

Kuku expressed the belief that it was time to resolve the ongoing tax dispute between the Plateau State Internal Revenue Service and the NSITF in the interest of fostering cooperation between agencies. He highlighted the NSITF’s recent actions in clearing the PAYE arrears and commended the new Managing Director, Barr. Maureen Allagoa, for her dedication to this cause.

He emphasized that a positive working relationship between the two organizations would be mutually beneficial and enhance the seamless delivery of their mandates and obligations to the citizens of Nigeria. Kuku expressed hope that PSIRS, under Waya’s leadership, would reciprocate the NSITF’s commitment and contribute to the employee compensation scheme, which had been dormant since its registration in 2012.

Kuku concluded by noting that the NSITF had been actively paying claims and compensations to various enrollees in the state who had lodged their cases with proper documentation. He urged government agencies to cooperate in spreading awareness about the employee compensation scheme, which has the potential to significantly benefit Nigerian workers.

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