The liquidation for parallel employees is coming

By Dimitris Katsaganis

In the autumn, it is expected to complete the settlement of the contributions for the simultaneously employed professionals and salaried persons with proof of expenditure (property title or proof of services provided).

This is reported by the responsible officers of the Funds in “K”, pointing out that immediately afterwards the notices will be posted on the electronic services of e-EFKA, from where the close to 250,000 insured persons will be able to be informed.

There are two important points concerning this double settlement (ie, firstly for those employed at the same time and secondly for those paid with proof of expenditure).

The first new element, which specifically concerns the settlement of contributions for the year 2021 for concurrently employed professionals, is that for those who have a debit balance, according to the same sources, they will have to pay it in up to 8 installments, according to the basic scenario which is selected by competent officials, instead of 6 as was the case until last year.

The second point, which concerns those paid with proof of expenditure, is that the liquidation will cover the entire previous three years (2019 – 2020 – 2021) and will “run” at three speeds.

More detail:

1. How will the liquidation be done for those employed at the same time

Based on the Vroutsis insurance law, as of January 1, 2020, employees who are also self-employed (e.g. have a “block”, are members of companies, have a sole proprietorship, etc.) are exempt from the obligation to pay main contributions health insurance, since for their salaried employment contributions are paid (by themselves and their employers) to the above insurance branches which exceed 252 euros per month.

For the main insurance, if an insurance class higher than 2nd is selected, the insured will pay the difference only for the pension branch.

For the supplementary insurance and one-off benefit, a contribution is paid, in the selected category, as long as no corresponding contributions are paid from salaried employment.

If the salaried employment is interrupted, the contribution is made based on the selected insurance category and the entire contribution is borne by the insured.

In any case, with the insurance contributions contributions for the unemployment sector amounting to 10 euros and for health workers in favor of the health shelter amounting to 2 euros are collected, only if no corresponding contributions are paid from salaried employment.

Classification in an insurance category is mandatory. The selection will be binding for the whole year. In case of not submitting an application to change the insurance category, the classification category of the previous year remains active.

This amount corresponds to the 2nd insurance category of freelancers, based on the system that has been in effect since last year.

Thus, any employee who in 2021 paid, together with his employer, more than 252 euros/month for contributions is not required to pay any contribution due to the parallel – with the employee – free professional activity.

On the contrary, anyone who as an employee in 2021 paid monthly, together with his employer, less than 252 euros/month will have to pay himself the difference that arises between the contributions paid for salaried employment and 252 euros/month.

Example

Even for salaried employment in 2021, contributions (employer and labor) were paid in favor of the main insurance and health of 200 euros/month. Therefore, there is a difference of 52 euros/month between the contributions paid due to salaried activity (200 euros/month) and the 2nd insurance category for professionals (252 euros/month). On an annual basis, the difference amounts to 624 euros. This difference constitutes a debit balance, which must be paid by the concurrently employed-insured himself.

The payment of the 2021 contributions will be made in up to 8 equal monthly installments, according to the scenario they are considering in e-EFKA.

2. How will the liquidation be done for those paid with a receipt of expenditure

The existing “regime” provides for three “speeds” for the contributions of those paid with receipts of expenditure (for an amount up to 10,000 euros per year) at which the contributions of those paid with receipts of expenditure will “run”:

– The first “speed” concerns the contributions paid in 2019 based on the previous framework. These will be settled after dividing the total annual amount of contributions paid through service provision documents for main pension by the amount of the first insurance category. For the period from February 1, 2019 to December 31, 2019, the settlement of contributions paid from expense receipts is carried out by dividing the total annual amount of contributions paid through service provision documents for the main pension by the amount of the first insurance category. The insurance period resulting from the liquidation cannot exceed 11 months of insurance. The premiums paid for main insurance are divided equally among the insurance months created. The provisions on parallel insurance do not apply, except for the minimum contribution limit, as it was in force on December 31, 2019.

– The second “speed” concerns service documents issued from January 1, 2020 onwards. For them, the provisions of the new framework will apply, according to which contributions of 20.28% of the net value of the proof of expenditure are foreseen (EFKA contributions for main pension 13.33% and for health care 6.95%). However, a maximum ceiling is set at the level of the 1st insurance category for professionals, i.e. 210 euros/month. Especially, however, for documents issued based on written contracts drawn up before February 1, 2019, the new “regime” applies from September 1, 2021.

– The third “velocity” concerns income from intellectual or related rights in works, income from the granting of a patent license, and fees from incidental sales of personal property that do not constitute a commercial activity. For these activities there is an exemption from the obligation to pay contributions.