Under the current system, it is the companies that, through telecommunications email list the RED system , send the Social Security information with the quote and settlement of the contributions to be paid by the workers, through TC1 and TC2. With this new system, it will be the Social Security that sends a draft with this information .
How the System Works
The approval, at the end of last year, of the measure that obliges companies to send Social Security a monthly file with information on all the remuneration concepts of each of their workers is the first step towards implementing this system.
With this information, Social Security will prepare a draft of the payment of contributions and send it to the company so that they can verify whether it is correct. Once verified, if there are no errors, the company's account will be charged with the total amount of the contributions.
If any error is detected, the data can be modified and sent back to the TGSS so that the correct amount can be collected. It will also be necessary to make the correction if the company has any employee on sick leave.
Simplification or more hassle?
The new system aims to simplify tasks for companies, as it is the Social Security that sends the proposal for the liquidation of contributions. However, it remains to be seen whether it is really effective and, even if it is, whether it is beneficial for companies.
