With the introduction of the Social Health Authority (SHA), employers and employees must take immediate action to comply with the new regulations outlined in the Primary Health Care Act and the Digital Health Act. By following these two essential steps, businesses can learn how to ensure SHA compliance for employers and employees . They can also ensure smooth payroll processing and uninterrupted healthcare services for their employees.
1. Register Employers and Employees on the SHA Portal
To maintain access to healthcare services, you must register your business and employees on the SHA Employer Portal by 1st October 2024. Although the authorities haven’t set a strict deadline, completing the registration before processing October payrolls is essential to avoid any disruptions. Acting early helps you prevent potential service interruptions and ensures compliance with the new system.
This proactive step also allows you to focus on your company’s goals without worrying about healthcare coverage lapses. Additionally, by registering early, you ensure your business remains on track with the national economic transformation agenda. The SHA portal registration will secure your employees’ access to healthcare, which is critical for maintaining productivity and employee well-being.
2. Deduct 2.75% SHIF Contributions from October Salaries
Starting with the October 2024 payroll, employers must deduct 2.75% from each employee’s gross salary for the Social Health Insurance Fund (SHIF). These new deductions will replace the current NHIF (National Hospital Insurance Fund) contributions. Ensure that your payroll systems reflect this change to avoid errors or penalties from the relevant authorities.
You must update your payroll software immediately to incorporate the new SHIF rate before processing October salaries. If your system isn’t updated, you risk miscalculating contributions, which could lead to financial and legal consequences. For businesses using Workpay’s payroll software, the good news is that Workpay will automatically update its system in October 2024. This seamless update ensures accurate calculation and remittance of SHIF contributions, minimizing the chances of errors and manual miscalculations.
Taking these steps on How to ensure SHA compliance for employers and employees makes your business stays compliant with SHA regulations while safeguarding employees’ healthcare benefits. By acting early and updating your payroll processes, you contribute to both your company’s operational success and the broader national healthcare agenda.