three million self-employment You will see how your social contributions change. 1 January. Contributions paid by self-employed people rise from month to month for those who make the most profit from their activities, while falling for those who earn more modest returns. The change is automatic and Social Security Payment will be made automatically in the last week of January, as every month. Although organizations representing the group recommend that self-employed people periodically review how their income and expenses are changing to avoid the next disaster income statement The Treasury demands more or less large payments. What is popularly known as ”Let them hit him with a stick‘.
End January 1, 2023 The current social contribution system for the self-employed came into force. It’s a reform that represents a change in logic for this group, which for decades has been accustomed to contributing according to a voluntarily chosen quota, regardless of the future of their business. In other words, until last year, a self-employed person who invoiced 1 million euros could make the same contribution as someone else who invoiced 1000 euros.
Following negotiation and agreement with representatives of the group, the government approved a new system subjecting each member to a special regime for self-employed workers (RETA) paying a fee based on your net returns, i.e. generally speaking, based on what you earn and invest in your business.
The system agreed upon between management and social actors has a gradual deployment and is implemented over the first three years, i.e. from 2023 to 2025The fees to be paid are managed by a system. 15 episodes. Every year the fee for the section in question changes, increasing its graduality: whoever gets more returns pays more; and vice versa.
New quotas mean little change, five euros Discounts for those who pay the least and 30 euros increase for those with more (in case minimum wage per episode is preferred). Figures that may vary slightly depending on whether each self-employed person can achieve the expected increase in their contributions Equity Mechanism Intergenerational (MEI).
This different contribution effort will also affect the amount of benefits to which the self-employed are entitled, as these benefits are calculated with reference to the premium bases of the months before they benefit. The higher the contribution, the higher the future benefits and vice versa.
As the UGT-CTAC president recalled, the transition process was not without some controversial incidents: Dani García. For example, the wages of some of the group were indexed to inflation, and their monthly wages also increased rapidly, given the historic increase at the beginning of the year.
Possible payments after the income campaign
According to government calculations, two-thirds are self-employed In the current system, the fees they pay are less or almost the same as in the old system. This made the transition easier, but could hold surprises for some starting with the 2023 tax return.
According to the president of Pimec Autonoms, Elizabeth BachBy the end of 2022, there have been a lot of questions from employees wondering whether they will have to pay more or less with the new system, given the innovation. But since the change from the ‘old’ quota to the ‘new’ quota was handled automatically by Social Security, most of these consultations died out there, and many self-employed workers did not adapt their quotas to the ‘this much desires’ philosophy. ‘This is how much you pay.’ This may mean they have to dig deep into their pockets as spring arrives.
“The self-employed person who has a high income and is used to paying the minimum wage may be afraid,” said the UGT-CTAC president. Dani Garcia. According to calculations made by your organization, around 12% of self-employed workers adjust their contributions to pay more or less during the year, as they inflate their contributions, among other things, to have a better retirement. .
RETA members have up to six time periods to change the fee they pay throughout the year. If they do not do this and their actual returns exceed their declared returns, the Treasury will demand the difference after submitting the income tax return. The difference between declared and paid can force more than one self-employed person to make an unpredictable payment.
That is why organizations representing the group recommend periodically reviewing the development of income and expenses in order to correct possible imbalance and, if any, change the fee so that later you do not have to pay large sums at once. They also recognize that any new system introduces a certain legal uncertainty, especially when determining which concepts count towards calculating a self-employed person’s earnings and which concepts can count as business expenses.