We explain the measures included in Royal Decree-Law 11/2020 in relation to the payment of Social Security contributions: Moratoriums and Deferments.
Royal Decree-Law 11/2020 of March 31 provides two formulas that aim to facilitate the payment of Social Security contributions, at a time as exceptional as the one we are living in (the COVID-19 crisis). It is about the moratorium and the deferment in the payment of social contributions and concepts of joint collection.
Deferment or Moratorium?
Regarding the contributions corresponding to the month of April, it is only possible to request a deferment (or deferral) of payment, but with respect to the contributions corresponding to the months of May and June, you may choose between requesting a moratorium or a deferral of payment, as pertinent. The contributions corresponding to the month of July may only be subject to a moratorium.
Within what deadlines must I submit the applications for the payment of Social Security contributions?
Both moratoriums and deferrals must be requested before the expiration of the first ten calendar days of the statutory payment period.
Therefore, those workers included in the Special Regime for Employees (cuenta ajena) or Self-Employed (cuenta propia) Workers who so wish, and as long as the conditions established for access to both the moratoriums and the indicated deferrals are present, may request:
- Until next April 10, the deferment of the payment of the quotas corresponding to the month of April 2020, and
- From May 1 to May 10, the 6-month moratorium, without interest, on the payment of the quota corresponding to the month of May, or, failing that, the deferment of the quotas for said month of May, which would imply the payment of the quotas for accidents at work and occupational disease within the regulatory period, and
- From the 1st to the 10th of June, to request a moratorium of 6 months, without interest, in the payment of the quota corresponding to the month of June, or, failing that, the deferment of the quotas for said month of June, whatever which would imply the payment of the quotas for accidents at work and occupational disease within the regulatory term, and
- From the 1st to the 10th of July, request a moratorium of 6 months, without interest, in the payment of the quota corresponding to the month of July.
What about the Self-Employed?
Finally, it should be noted that those self-employed workers who are recognized with the extraordinary benefit for cessation of activity referred to in article 17 of Royal Decree-Law 8/2020, must not contribute to Social Security during the period of said service. In the event that the aforementioned quotas are charged to their account because the benefit has not been recognized on time by the corresponding managing body, said quotas will be returned ex officio by the General Treasury of the Social Security, for which reason it is not necessary to make, with respect to these quotas, any request for moratorium or deferral.
In addition, the quotas corresponding to the month of March, for the days in which the extraordinary benefit for cessation of the activity is not recognized, and that had not been paid in time, may be paid by force of term without the application of a surcharge.
How and where can I request the moratorium for the payment to Social Security?
Requests for moratorium must be submitted through the Electronic Data Submission System in the field of Social Security (RED System) regulated in Order ESS/484/2013, in the case of self-employed workers who have been assigned a RED Authorized Person.
For these purposes, in the month of May, once the requirements and conditions that must be met to access the moratorium on payment have been established by the Order of the Minister of Inclusion, Social Security and Migrations, a new service will be implemented so that no Applications submitted through means other than those indicated will take effect.
When the self-employed worker is assigned an Authorized RED, it will not be necessary to present an application document or form, but it will be sufficient to communicate the data of the period, or periods, of settlement with respect to which the moratorium on payment is requested, through the new service.
In the case of self-employed workers who do not have an assigned Authorized RED, the applications must be submitted by the electronic means available at the Electronic Office of the Secretary of State for Social Security (SEDESS) through the form provided in the procedure Catastrophic Event Moratorium and Exemption.
In order to simplify the presentation of the requests, an application may be submitted that includes several consecutive settlement periods, always within those first ten days of the month in question.
The General Treasury of Social Security may enable another electronic means other than the RED or the SEDESS System to make the request. In that case, you will be informed in a timely manner.
Within what period should the COVID deferment request be submitted?
For Workers included in the Special Regime for Employees or Self-Employed Workers, the application must be submitted within the following deadlines:
- April 1 to 10: when the deferment requested is that of the quotas corresponding to the April settlement period.
- May 1 to 10: when the deferment requested is that of the quotas corresponding to the May settlement period.
- June 1 to 10: when the deferment requested is that of the quotas corresponding to the June settlement period.
Deferral requests that are submitted after the deadlines indicated for the current month will be considered untimely for the purpose of obtaining a COVID deferral with reduced interest, for which reason interest for late payment will apply.
What requirements must be met to request the deferment of contributions due to COVID-19?
In the first place, it is necessary that the self-employed worker is up to date with the payment of their obligations with Social Security, but it will also be necessary:
- to not have a deferment in force for debts corresponding to periods prior to the month of March
- the request must be submitted within the deadlines indicated in Royal Decree-Law 11/2020, and
- through the channels indicated in the previous section.
If any of these requirements contained in sections 1), 2) or 3) are not met, the request for deferral of quotes that are submitted will be processed and resolved in accordance with the general procedure, applying the late-payment interest to which refers to article 23.5 of Royal Legislative Decree 8/2015, which approves the Consolidated Text of the General Law on Social Security.
Source: Social Security
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