The Ministry of Finance, which has for several years been working on a project to consolidate payroll taxes, on Thursday announced it was putting off the July 1 implementation date.

The ministry, however, did not say how long the process would remain on hold.

The consolidation of payroll taxes, which was detailed in the 2004 Matalon Tax Reform Report, would free employers of multiple payments at different state agencies.

Payroll taxes include PAYE, a 25 per cent deduction from employee income, a national insurance tax (NIS) on salary of up to $500,000 for which both employee and employer pay a 2.5 per cent deduction, totalling five per cent, HEART contributions by employers only, and National Housing Trust contributions and education tax.

Though Finance Minister Audley Shaw, back in April, had said that the consolidation plan was for July, there was still ongoing debate on the NIS over whether to increase the cap or adjust rates.

The ministry commented no further than the short press release issued, but a tax expert with knowledge of the process said while the NIS discussions did come into play, the greater delay was caused by needed legislative changes to the various statutes which were still in the process of being amended - as referenced in the ministry release.

Shaw will announce a new imple-mentation date "in due course", the ministry said.

sabrina.gordon@gleanerjm.com