2004/1 of 13 January 2004

Notification about Reclaiming Debts.

As of January 2004, the General Treasury of the Social Security is going to use a procedure of sending out notifications of debt claims to the representatives of companies that are registered with the RED System and use it through them, who have not received the notices that are being sent directly to the address given by the company to the General Treasury of the Social Security.

The advantages of this system are the following, among others:

It is essential that claims be received so that the companies know their situation and can act accordingly: if the debt is either completely or partially incorrect, it can be corrected within the legal time limits; if it is correct, it can be paid, or regularised by applying for an extension, before higher surcharges are applied.

It should be remembered that the surcharges increase with time and even if the notification is not received, it will end up being made affective by being published in the official bulletins.

This situation will be aggravated when the new surcharges and interest listed in Law 52/2003 of 10 December -BOE of 11 December - come into force because, among other changes, interest for late payment will accrue from the end of the regulation payment time limit, as well as the corresponding surcharges.


In all cases, the fact that the company representatives who use the RED System receive these notifications does not imply that they have any other responsibility than to inform the companies that they represent that there is a debt and that they should therefore taken some action.

Change to filling out contributions for workers under a Labour Force Reduction Plan with employment contract suspension (total or partial)

The aim is to include contributions for workers whose employment contracts are suspended due to a Labour Force Adjustment Plan (total or partial) in normal (L00) payments, which would simplify the completion of contribution documents and reduce the number of payments to be made.
 
This means that the current supplementary payments for Labour Force Adjustment Plans (acronym in Spanish, ERE) will disappear: L10 (or 010) "Partial Labour Force Adjustment Plan" and L11 (or 011) "Total Labour Force Adjustment Plan".

Special situation codes will be used in the company's ordinary payment to identify the contribution for workers whose employment contracts are suspended because of an ERE. The contribution bases for this situation must correspond to employer-only base codes.

Listed below are the changes that must be made to contribution documents. However, the exact date of implementation will be announced in a future RED News Bulletin.

  • RED SYSTEM: Including contributions for workers whose employment contracts are suspended due to a Labour Force Adjustment Plan (total or partial) in normal payments (L00).

    After these changes go into production, no payments with a code L10 or L11 will be accepted.
    • Partial Labour Force Adjustment Plans

      - Specifications for filling in the FAN file

Partial Labour Force Adjustment Plans mean that there is a reduction in the worker's workday as a result of the Plan (short time working).

The difference as far as contributions are concerned is that the worker is actively working for part of the day, so that the company is responsible for paying the employer's portion and the worker's, and for part of the day the worker is partially unemployed.

The company must pay its portion for all contingencies only for the part of the workday regulated by the ERE. The contributions for WRI and OD must be made under heading 126.

The worker's portion will be paid by the SPEE after deducting it from the worker's benefit before it is paid out.

The contribution for workers whose employment contract is suspended due to a Partial ERE should be included in the normal (L00) payment for the month and entered in the FAN file in the following way:

    • The part corresponding to the workday worked must be reported by entering an "R" (Partial Labour Adjustment. Part Worked.) in field 1110 of the FAN file.

    • The part for the suspended employment must be reported by entering a "P" (Partial Labour Adjustment. Part of workday under ERE) in field 1110 of the FAN file.

    • The bases corresponding to the DAT segment for the part of the day regulated by the ERE ("P") must have employer's contribution base codes (BA20, or BA21 and BA22).

    • The heading for the regulated part of the day (with special situation "P") must be 126.

- Validation

    • A check will be made to see whether there is a DAT segment with the indicator "R" in field 1110, which must necessarily be linked to another DAT segment for the same payment period that has the indicator "P" and vice versa.

    • The maximum number of days will be validated at the DAT level but the sum of the days reported in the DAT segments with the indicators "R" and "P" will not be checked to see if there are more than 31 days.

      There will be no check of the maximum number of days because both the DAT segment for the part of the day worked and that for the part under the ERE include the number of days for these situations. Therefore, if the Partial ERE gives a reduction for the daily workday, the number of days in the part that was worked will be 30 and the number of days in the part that was regulated will also be 30.

    • A check will be made that the contribution bases associated with the part of the day regulated by the ERE (with a value of "P") have employer-only contribution base codes. Otherwise, an error message will be generated: "Bases incompatible with a special situation".

    • The heading for this segment (a value of "P" in field 1110) will be checked to see that it is a heading 126.
  • Total Labour Adjustment Plans

- Specifications for filling in the FAN file

The contributions for workers whose employment relations are suspended due to a Total Labour Force Adjustment Plan must be included in the ordinary payment (L00) and entered in the FAN file according to the following rules:

    • Workers affected by a Total ERE must be identified with a value of "T" (Total Labour Adjustment Plan. Employer's Contribution.) in field 1110 of the FAN file.
    • The contribution bases associated with this special situation must be employer-only codes (BA20, BA21 or BA22).

    • The heading associated with this situation must be 126.

- Validation

    • A check will be made to see if a DAT segment for the same contribution period with a value of "T" and another segment with the values of "R" or "P" (values for Partial Labour Adjustment Plans) in field 1110 of the FAN file are linked to the same worker.

    • The base codes associated with a DAT segment with the indicator "T" in field 1110 must be employer only: BA20, BA21 or BA22.

    • A check will be made that the heading associated with the Total Labour Adjustment Plan ("T") is 126.
  • Validations common to situations in which employment contracts are suspended due to either a Partial or Total Labour Adjustment Plan.
    • Only the partial unemployment compensation code (CD09) will be accepted when there is delegated payment for partial unemployment and in the DAT segment associated with the ERE situation there is a value of "T" or "P" in field 1110.

      Otherwise, an error will be generated "Incorrect compensation error".

    • A value of "T" or "P" will not be accepted for supplementary payments owed for Holidays not taken and paid at the end of the employment contract (L13).

      If the employment relationship comes to an end while work is suspended due to a Labour Adjustment Plan (at the wish of the worker or for any other reason) and the worker should be paid for holidays that were not taken, these must be paid in an L13 payment.

      In this L13 payment, the ERE situation must not be entered (a value "T", "P" or "R" must not be entered in field 1110 of the DAT segment) and the contribution must be made in accordance with the general rules for L13 payments given in RED News Bulletin no. 2003/2 of 3 February 2003 (the contribution bases must not be employer-only, the heading may not be 126, etc. .).
  • STANDARDISED TC2

With the disappearance of 010 (Partial Labour Adjustment Plan) and 011 (Total Labour Adjustment Plan) payments from the Standardised TC-2 and the inclusion of these workers in the TC-2 form used by companies with 000 payments (Normal), a series of changes have been made to how Standardised TC-2s should be filled out.

  • Partial Labour Adjustment Plans

Special situation code 5 (Partial Labour Adjustment Plan. Employer's contribution), which used to be entered in the normal (000) payment to indicate that the worker was in an ERE situation and that therefore there was a supplementary payment (010), will now be used to identify the part of the day that is regulated by the ERE. Unlike on the RED System, on the standardised TC2 no special situation code is used for the part of the day that is worked.

    • Special situation code 5 (Partial Labour Adjustment Plan. Employer's contribution) will be entered on the same line as base codes 20, 21 or 22 (Employer's contribution).

       
    • The heading for Work-Related Injuries and Occupational Diseases must be 126.

    • Deduction/compensation code 09 (Compensation for partial unemployment) can only be entered when there is delegated payment of the benefits for partial unemployment and only if the Special Situation box has a code 5 or 7.

    • The values 5 and 7 cannot be entered on 013 payments (Holidays due and not taken).
  • Total Labour Adjustment Plan

    When the workers are in this situation, the code in the Special Situations box must be 7 (Total Labour Adjustment Plan. Employer's contribution):

    • Special situation code 7 (Partial Labour Adjustment Plan. Employer's contribution) will be entered on the same line as base codes 20, 21 or 22 (Employer's contribution).

       
    • The heading for Work-Related Injuries and Occupational Diseases must be 126.

    • Deduction/compensation code 09 (Compensation for partial unemployment) can only be entered when there is delegated payment of the benefits for partial unemployment and only if the Special Situation box has a code 5 or 7.
    • The values 5 and 7 cannot be entered on 013 payments (Holidays due and not taken).

The most relevant points for contribution and collection introduced by Law 52/2003 of 10 December on specific provisions for the Social Security (B.O.E. of 11 December 2003).

Law 52/2003 introduces many wide-ranging changes to contribution and collection, among which are the following: The elimination of the obligation to submit contribution documents for certain special schemes,the setting of a single surcharge, instead of the previous charges for delay and demand, and the introduction of a late payment penalty.

Law 52/2003 came into force on 1 January 2004, except for articles 3, 4 and 5, which come into force on 1 June 2004.

Article 5 Section Two of Law 52/2003 revises the text of section 1 of article 26 of the General Social Security Law concerning:

"Submitting contribution and payment documents:

Those responsible for meeting the obligation to contribute must pay their contributions and payments in line with the formalities or by the electronic,computer or telematic methods that are set by the regulations, and must send in the payments or submit their contribution documents within the time limits set even when they do not pay the corresponding contributions or only pay the worker's portion. This submission or sending or failure to do so will give rise to the effects stated in the application and implementation provisions of this law.

The submission of contribution documents within the regulation time period cannot be required, however, for contributions in the Special Schemes for Self-Employed Workers, Domestic Employees, the fixed contributions for the Special Agricultural Scheme or the Special Scheme for Sea Workers, School Insurance contributions and any other fixed contributions that may be set up, as long as those who are required to make these contributions have become affiliated within the set regulation time period. In these cases, the provisions of this law are applicable to cases where, when this obligation exists, contribution documents have been submitted within the regulation time period".

Article 5 Section Three of Law 52/2003 revises the text of article 27 of the General Social Security Law:

"Article 27. Surcharges for payments outside the time limit.

1. Once the set regulation time period for paying contributions to the Social Security has ended without the payments having been made and without prejudice to the special treatment given to extensions, the following surcharges will be levied:

1.1. If the persons responsible for making the payment have presented the contribution documents within the regulatory period:

A) A surcharge  of 3% of the debt, if they pay the contributions owed in the first month following the date on which the regulatory period ends.

B) A surcharge of five per cent of the debt, if they pay the contributions owed in the second month following the date on which the regulatory period ends.

C) A surcharge of ten per cent of the debt, if they pay the contributions owed in the third month following the date on which the regulatory period ends.

D) A surcharge of twenty per cent of the debt, if they pay the contributions owed after the third month following the date on which the regulatory period ends.

1.2. If the persons responsible for making the payment have presented the contribution documents within the regulatory period:

A) A surcharge of 20 per cent of the debt if the contributions owed are paid before the end of the regulation time limit for payment stated in the debt claim or liquidation report.

B) Surcharge of 35% of the debt, if the payments owed are made after the end of this time limit.

2. Debts to the Social Security that are payments under public law and are for resources other than contributions, when they are not paid within the set regulation time period, will be increased by the relevant surcharge stated in section 1.1 above, according to the date of the payment of the debt. "

Article 5 Section Four of Law 52/2003 revises the text of article 28 of the General Social Security Law:

"Article 28.Late payment penalty

1.- The late payment penalty on debts to the Social Security will be required, in all cases, if the debt has not been paid after fifteen days of being notified of the claim notice or of the start of deduction proceedings.

Likewise, this penalty will also be payable when the debt amount has not been paid within the deadline set when the decision is made to reject the appeals presented against the debt claims or liquidation acts, if the execution of these decisions were suspended in the contentious-administrative appeal process filed against them.

2.- The late payment penalty will be the interest earned by the principal of the debt from the end of the regulation payment time limit, and also those that would have been earned by the surcharge that was applicable at the time of payment from the date on which it can be required, as shown in the previous section.

3.- The late payment penalty interest rate will be the legal interest on money in force at any time during the period of accrual, plus 25 percent, unless established otherwise under the General State Budget Act."

The Secretary of State for Social Security's Decision of 15 December 2003.

The Secretary of State for Social Security's Decision of 15 de December 2003 establishing special time limits for paying the difference resulting from the application of Order TAS/3581/2003 of 15 December setting the Standardised Contributions Bases for 2003 for Common Contingencies in the Special Social Security Scheme for Coal Mining.

The differences between contributions that result from the application of the terms of Order TAS/3581/2003 of 15 December (B.O.E. 23 December) and those that were being paid in 2003 can be paid in by companies within the time limits and in the manner given below:

  • Within the period ending on the last day of March 2004, the contribution differences corresponding to the months of January to April 2003, both inclusive.

  • Within the period ending on the last day of May, 2004, the contribution differences corresponding to the months of May to August, 2003, inclusive.

  • Within the period ending on the last day of July 2004, the contribution differences corresponding to the remaining months of 2003.

Bonuses for Continuing Vocational Training.

Article 8 of Royal Decree 1046/2003 of 1 August regulating the continuing vocational training sub-system (BOE of 12 September 2003) states that companies that contribute for vocational training will have a credit for continuing training.

Section 4 of the Decree states that "the credit assigned to companies under the terms of the previous article will act as the limit for the allowances that these companies can enter on their Social Security contribution slips..."

Currently, the publication of the Ministerial Order regulating the financing of the continuing training actions by companies and determining how to apply these allowances to Social Security contributions is still pending.

When it is published, the RED News Bulletin will announce in advance how to enter these allowances on Social Security contribution slips.

Benefits for contracting carers for large families.

Law 40/2003 of 18 November on the Protection of Large Families (B.O.E. of 19 November) introduced a new allowance in article 9 that has to be expanded legally or by the regulations:

"Hiring carers for large families will entitle them to an allowance of 45% on their Social Security contributions payable by the employer under the conditions that are established in law or regulations, as long as the parents or parent, in the case of single parent families (...) work as employees or self-employed workers outside the home or are unable to work.

When the large family is in a special category, it will not be necessary for both parents to work for an income outside of the home..."

Contribution for Self-Employed Workers in the Special Agricultural Scheme.

Law 36/2003 of 11 November on economic reform measures (B.O.E. of 12 November) introduces a new point in article nine, point 3, into additional provision thirty-six adding it to the revised text of the General Social Security Law in Royal Decree Law 2/2003 of 25 April, which has the same name. It exempts self-employed workers included in the Special Agricultural Scheme prior to 1 January 2004 from the contribution scheme that puts them on a level with self-employed workers, except that they can choose to be included in it before 31 January 2004 (or before 1 October each following year).

Law 59/2003 of 19 December on Electronic Signatures.

Law 59/2003 of 19 December (BOE of 20 December) regulates electronic signatures, their legal effectiveness and performing certification services.

Because of the regulation contained in this law, the General Treasury of the Social Security cannot be considered to be a body that performs certification services. However, SILCON Certificates, which are issued by the General Treasury and are needed to have access to any service in the RED System, will continue to be fully valid.

New TC1/10 and TC1/15 Contribution Slips.

Because of the publication of the regulations making it possible for self employed workers to contribute for work-related injuries and occupational diseases according to their economic activity (Law 53/2002 of 30 December on fiscal, administrative and social order measures) and in application of Law 45/2002 of 12 December on urgent measures to reform the unemployment protection system and improve employability, whose Additional Provision eleven includes the granting of allowances on Social Security contributions to handicapped people who set themselves up as self employed workers, it is necessary to change the TC-1/15 (Special Scheme for Self-Employed Workers) and TC-1/10 (Special Agricultural Scheme. Self-employed) contribution slips.

Below are the details of the changes that have been made to the current form in both the payment receipt and the body of the slip:

  • TC-1/15:

    - Payment receipt:

    • The anagram of a euro used as the background for the payment receipt disappears.

    • The current rubric "Rate" will become "Rate Com.C.".

    • The current rubric "Contribution" will become "Contribution, Common Conts.".

    • Under the previous headings, a new line of boxes will be added, leaving space for the rubric "Rate, WRI and OD" respectively, which will have the same height and width as those for Rate and Contribution for Common Contingencies.

    • The "Contribution Base " box will now be called "Cont. B. Com. C. and WRI/OD" and will be located between the lines of boxes for Rate and Contribution for Common Contingencies and the Rate and Contribution for WRI and OD, but without changing its size.

    • Immediately below "Contribution for WRI and OD", another box of the same size will be added for entering the "Allowance/Subsidy". This rubric will be to the left of the box.

    • The other boxes that were already on the form will remain where they are starting just below the new "Allowance/Subsidy" box.

    • The other information that is entered in this section of the slip and that has not been mentioned will not undergo any changes.


- Body of the slip:

    • The anagram of a euro used as the background for the body of the slip disappears.

    • The box with the rubric "Contribution Base" will now be called " Cont.B. Com.C. and WRI/OD"and will be moved towards the box with the rubric "Identifier for an Individual", at a distance from a similar box which will still be "IPF Code" with "Identifier for an Individual".

    • The box with the rubric "Contribution" will now be called "Contribution, Common Conts." but will keep its the size and position.

    • Between the boxes that are now "Cont. B. Com. C. and WRI/OD" and "Contribution, Common Conts." a new box with the rubric "Allow./Subsidy" will be inserted that is the same distance from these boxes as the "IPF Code" with "Identifier for an Individual" box.

    • The box intended for "WRI and OD Organisation", which will still be in the same place, will have its rubric changed to "WRI and OD Org." and will become smaller so that it is the same size as the same box on the TC1/20 slip.

    • After the previous box, with the same distance as there is between the "Worker's Affiliation No." and IPF Code", a new box the same size as the modified "WRI. and OD Org." with the rubric "WRI. and OD Head." will be added.

    • The other information that is entered in this section of the slip and that has not been mentioned will not undergo any changes.

  • TC-1/10:

    - Payment receipt:

    • The anagram showing a euro as the background for the payment receipt disappears.

    • Between the "TD Improvement" box and "Other Income" box, a box with the same height and width as these will be added. This box will have the rubric "Allowance/Subsidy" to the left of it. The boxes that are currently below the one with the rubric"T.D." will remain as they are but will be further down the page.

    • The other information that is entered in this section of the slip and that has not been mentioned will not undergo any changes.

- Body of the slip:


    • The anagram showing a euro as the background for the body of the slip disappears.

    • The box with the rubric "Contribution Base "will be moved to the left and will now be just above the one that currently has the rubric "WRI and OD contribution". It will keep both its size and its rubric.

    • Just above this, a box will be created that takes up the same space as the rubric, which currently has the rubric "T.D. Improvement Contribution", which has the same height and width as this one. This box will have the rubric "Contrib. Common Conts." and will be at the same height as the box with the rubric "Contribution Base".

    • The box that currently has the rubric "Contribution, Common Cont." will change to "WRI and OD Contribution".

    • The box that currently has the rubric "WRI and OD Contribution." will become "TD Improvement Contribution.".

    • The box that currently has the rubric "T.D. Improvement Contribution" will change to "Allowance/Subsidy ".

    • The other information that is entered in this section of the slip and that has not been mentioned will not undergo any changes.

These slips will be used for contributions that are paid in January 2004 on TC-1/15s and those paid in February 2004 on TC-1/10s.

Social Security Contribution Allowances and Joint Collection Portions for workers in particular geographical areas.

Additional provision thirty-nine of Law 62/2003 of 30 December on fiscal, administrative and social order measures modifies additional provision thirty of the General Social Security Law, which is now stated in the following terms:

"Employers dedicated to activities included in the sectors of commerce, hotels, tourism and industry, except for energy and water, in the cities of Ceuta and Melilla will be entitled, for the workers who perform services in their work centres located within the limits of these cities, to a bonus of up to 40% on their portion of the Social Security contributions for common contingencies and for the joint collection items of unemployment, vocational training and the wage guarantee fund.

Also, workers included in the Special Scheme for Self-Employed Workers who have activities included in the sectors of commerce, hotels, tourism and industry, except for energy and water, who are resident in and carry out their activities in the cities of Ceuta and Melilla will be entitled to an allowance of up to 40% on their portions of the Social Security contributions for common contingencies (...)"

The date when these allowances come into force and the method of applying them to Social Security contribution slips will be announced in advance.

Allowances on contributions for workers contracted for the celebration of the America's Cup.

Additional provision eleven of Law 62/2003of 30 December on fiscal, administrative and social order measures states the following:

"Legal entities constituted because of the events of the America's Cup 2007 by the organising body or by the teams taking part will have an allowance of 100% on their Social Security contribution for common contingencies, temporary disability due to these contingencies and the joint collection concepts on Social Security contributions for workers that they contract to carry out work directly related with their participation in this event.

Within a time limit of two months after the law comes into force, regulations will be approved by royal decree that will set the requirements, the time limits, the procedure for granting it and the control measures for this allowance".

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