Royal Decree-Law 11/2020, in force since April 2, adopts a series of complementary urgent measures in the social and economic sphere to address COVID-19. Among the labor measures supporting businesses and the self-employed, we can highlight the moratorium of up to 6 months (interest-free) for the payment of their Social Security contributions and joint collection items, whose accrual period, in the case of companies, falls between April and June 2020, and in the case of the self-employed, between May and July 2020, provided that their activities have not been suspended due to the state of emergency declared by Royal Decree 463/2020. And companies and self-employed workers, provided they do not have another deferral in place, may also request a deferral of payments on their Social Security debts whose regulatory payment deadline falls between April and June 2020, with an applicable interest rate of 0.5%.
As we have already informed you, Royal Decree-Law 11/2020, of March 31, which adopts a series of urgent complementary measures in the social and economic sphere to address COVID-19, was published in the Official State Gazette (BOE) on April 1.
The legislation includes a series of labor measures, effective from April 2, among which the most important are those related to the moratorium on Social Security contributions for self-employed workers and companies, and the deferral of payments on debts to the Social Security system.
1. Moratorium on Social Security Contributions
·The General Treasury of the Social Security is authorized to grant six-month, interest-free moratoriums to companies and self-employed workers included in any Social Security scheme, who request it and meet the requirements and conditions that will be established by Order of the Minister of Inclusion, Social Security and Migration, following agreement by the Government's Delegate Commission for Economic Affairs.
·The moratorium, when granted, will affect the payment of their Social Security contributions and joint collection items, the accrual period for which, in the case of companies, falls between April and June 2020, and in the case of self-employed workers, between May and July 2020, provided that their activities have not been suspended due to the state of emergency declared by Royal Decree 463/2020, of March 14.
Application:
•For companies: moratorium applications must be submitted through the Electronic Data Submission System for Social Security (RED System).
•For self-employed workers: through the aforementioned RED System or via the electronic means available on the website of the State Secretariat for Social Security (SEDESS).
Attention . The regulation establishes that those authorized to act through the RED System will be enabled to submit electronically the applications and other procedures related to payment deferrals, moratoria on social security contributions, and refunds of undue payments to the Social Security system for the entities responsible for fulfilling the contribution obligation on whose behalf they act.
Companies The General Treasury of the Social Security System may enable any other electronic means, other than the RED System or SEDESS, for submitting the application.
must submit individual applications for each contribution account code where the workers for whom the moratorium on their social security contributions and joint collection items are registered.
For these purposes, communication , through the indicated means, of the identification of the contribution account code and the accrual period subject to the moratorium will be considered an application for said moratorium.
·Applications for moratorium must be communicated to the General Treasury of Social Security within the first 10 calendar days of the regulatory payment periods corresponding to the accrual periods indicated in the first section, without in any case the moratorium being applicable to those contributions whose regulatory payment period has ended prior to said application.
Granting:
The granting of the moratorium will be communicated within 3 months of the application (in the case of companies, through the Electronic Data Transmission System for Social Security (RED System), and in the case of self-employed workers through the aforementioned RED System or by the electronic means available on the website of the State Secretariat for Social Security). However, this communication will be considered to have been made upon the effective application of the moratorium by the General Treasury of Social Security in the contribution settlements carried out from the moment the application is submitted.
Attention. This moratorium will not apply to contribution account codes for which companies have obtained exemptions in the payment of the employer's contribution as well as in the joint collection quotas, regulated in article 24 of Royal Decree Law 8/2020, of March 17, on urgent extraordinary measures to address the economic and social impact of COVID-19, as a result of the procedures for suspension of contracts and reduction of working hours due to force majeure (ERTEs).
Penalties for false or inaccurate information:
Applications submitted by companies or self-employed workers containing false or inaccurate information will be subject to the corresponding penalties.
For these purposes, it will be considered false or inaccurate to have communicated to the General Treasury of the Social Security System, in the application for company registration, or in the registration of the worker in the corresponding Special Scheme, or in any subsequent data changes after registration, a false or incorrect economic activity, as well as any other data that determines the existence of the conditions and requirements for the moratorium.
Theimproper granting of moratoriums as a consequence of any of the breaches foreseen in the preceding paragraph will give rise to an ex officio review of the act of granting the moratorium. In such cases, and without prejudice to the corresponding administrative or criminal liability, the company, or the self-employed worker, will be subject to the corresponding surcharge and interest on the contributions to which the moratorium has been improperly applied, in accordance with the provisions of the General Regulations for the Collection of Social Security.
2. Deferral of Social Security debt payments.
Who can request a deferral?
Companies and self-employed workers included in any Social Security scheme or those authorized to act through the Electronic Data Transmission System in the field of Social Security (RED System), provided they do not have another deferral in force.
Attention. The regulation establishes that those authorized to act through the RED Systemwill be enabled to carry out electronically the applications and other procedures corresponding to the deferrals in the payment of debts, the moratoriums in the payment of contributions and the refunds of undue payments to the Social Security corresponding to the subjects responsible for compliance with the obligation to contribute on whose behalf they act.
Which debts can be deferred?
You can request a deferral of payments on your debts to Social Security whose regulatory payment period falls between April and June 2020.
What interest rate applies to the deferral?
An interest rate of 0.5% instead of the late payment interest rate stipulated in the General Social Security Law.
What is the deadline for requesting a deferral?
These deferral requests must be made before the first ten calendar days of the aforementioned regulatory payment period have elapsed.
3. Social Security Contributions for March 2020 in the Event of Late Suspension of Activity without Surcharge:
It is established that self-employed workers who have suspended their activity and are receiving the benefit for cessation of activity regulated in Article 17 of Royal Decree-Law 8/2020, and who have not paid the social security contributions corresponding to the days actually worked in March within the established deadline, may pay them late without surcharge.
The regulation also establishes other clarifications regarding the Extraordinary Benefit for Cessation of Activity:
• Applications for this benefit may be submitted until the last day of the month following the end of the state of emergency.
• Proof of the reduction in turnover must be provided through supporting accounting information, which may include a copy of the register of issued and received invoices; the daily log of income and expenses; the sales and income register; or the purchases and expenses register.
• Self-employed workers who are not required to keep records that demonstrate their business volume must prove the required reduction of at least 75% by any legally admissible means.
• All applications must be accompanied by a sworn statement confirming that all eligibility requirements for this benefit are met.
You can contact this professional office with any questions or for further clarification you may have.
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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
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