In that case, the Social Security will return the part of the paid compensation to the self-employed person


Discover how the new premium system for self-employed persons that will come into force in 2023 works

The introduction of the new premium system for the self-employed entails changes in premium payments. And it is that from January 2023 self-employed persons will contribute based on the net income obtained from the exercise of economic, business or professional activities.

The self-employed will have to estimate a number of net annual incomes in order to calculate the monthly average and choose a premium income that falls within the band corresponding to the amount of that average. To make this prediction you need the
Social security simulator which has been available for employees to do their bookkeeping since last November of this year before the change is implemented.

The new system consists of 15 sections, which indicate how much they have to pay to social security. The amounts of the installments vary from 230 to 500 euros per month in 2023 and from 200 to 590 euros per month in 2025, always based on net income. The
fixed amount that people who register as self-employed for the first time or who have not registered in the two immediately preceding years will go from 60 to 80 euros.

These quotas can be changed up to six times a year based on the net income forecast. They set up for this
different conditions during 2023. On these dates, the self-employed person must pass on the changes in the premium bracket. The bases chosen are provisional until the General Treasury of Social Security carries out the annual regularization according to the revenues communicated to it by the Tax Authorities. What is this going to mean? If, after the result of the adjustment, your annual income is lower than you expected, the General Treasury of Social Security will refund the difference between the fee you paid and the fee you have to pay. If the final annual amount is higher than indicated, you must pay the difference.

The Social Security indicates the cases in which the regularization of quotas does not apply:

– For registrations submitted after the deadline or ex officio as a result of actions by the Labor Inspectorate and Social Security, the period between the day on which you started the activity and the last day of the month in which the registration is requested will not be regularized. to make this request from the month following the start of the activity.

– If you do not comply with the obligation to declare personal income tax.

– The contributions corresponding to the months taken into account, inter alia, for the calculation of the regulatory basis of an economic advantage of the social security system recognized before the date of regularization are excluded from regularization.

– The contribution bases that refer to the periods in which the self-employed person received a short-term benefit are not regularized either. For example, when the self-employed person is in a situation of temporary incapacity for work, birth and care of the minor or cessation of activity, among other things.

– The period of enjoyment of the package is not regularised.

– The religious of the Catholic Church have no income, so they are not subject to regularization.

Source: La Verdad


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