Iberostar denies not filing statutory deductions for workers

The Iberostar Hotel and Resorts in St James has denied that it has not been turning over income tax and other deductions to government, resulting the disqualification of its employees from the government's relief programme for persons displaced by the COVID-19 outbreak. 

Outlining how the programme should work in a release this afternoon, the hotel said under the Supporting Employees with Transfer of Cash (SET) programme, employees earning below the tax threshold of $1.5 million are eligible to receive a grant of $9,000 every two weeks if they become unemployed before or after March 10, but not before June 30. It noted that qualification for the programme is dependent on the employer filing the necessary forms with the government's agencies. 

Iberostar has insisted that its taxes, deductions and filings have been made up to April 2020. It noted, however, that it experienced numerous difficulties on April 17 and 18 when it tried to upload the requisite P45 form to the Tax Administration, Jamaica (TAJ) portal to complete the filing of the payments. It said the system was "replete with technical issues."

The hotel said despite several efforts to get help from the TAJ it was unsuccessful.

"It was conceded by TAJ’s customer care representatives that they were having unresolved issues with their platform," the hotel said in its release signed by its Director of Human Resources, Dr Anthony Ferguson. "It was not until April 30, 2020 that the Hotel was finally able to upload to TAJ’s platform, all P45 Forms for eligible employees." 

It claimed other entities were also experiencing similar problems.

"The SET Cash programme’s grant, amounting to $54,000 to be paid over three months, was to start in April of 2020. The uploading of the P45 Forms should enable each eligible employee to receive his\her full benefit," the hotel maintained.  

Iberostar noted that in April it advanced payments the workers were to receive under the government's Business Employee Support and Transfer of Cash (BEST) programme.

Referencing how the initiative should operate, the hotel noted that under the BEST Cash programme, businesses who retain employees should be eligible for a grant of $9,000 for each employee fortnightly. 

The hotel said although the monies had not been provided to the hotel by government, employees were paid $18,000 each in April as they were scheduled to receive under the programme. It said the workers will also receive similar payments in May and June. 

The hotel is maintaining that it has done nothing wrong.

"Iberostar wishes to state categorically that there has been no wrongdoing on the part of the Hotel and that Iberostar has not only complied with the letter of the law, but also with its spirit."  

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