If you owe money to the Social Security you can apply for a deferred paying plan.
If you miss one or more payments to the social security you can still obtain a pay-slip in the following months with some over charges.
|10%||if it is paid during the following month.|
|20%||if it is paid after the following month.|
When the debt has a pending status for 2 months, it will move to another department ( Executive Collections) and the Social Security will attempt to get it paid by executing an embargo in your account.
Until the debt is not moved to this status it will not show up in a certificate of debt. When debts are paid before the 2 months it does not have any impact in debt records.
Embargoes in accounts do not have a fixed, predictable calendar. It may surprise you at any time.
The way to avoid embargoes, with its detrimental effects on your cash-flow, is reaching an agreement with the social security for a deferred paying plan.
To be eligible for a plan you need to meet these conditions:
- The debt must be more than 2 months old. This means that before applying for it you need to make sure that the current month and the previous are paid. ( the reason for this will be understood later on)
- You need to apply for a plan including all the debt. If you hold 2 businesses under your name, you would have to include them both.
- Of the outstanding amount there is an un-postponable one, approximately 20%. Therefore, before signing the agreement you will need to settle this 20% off the total.
- Finally, if you miss the payment of an installment, you have 1 month to catchup before the agreement is canceled.
- While you are paying your installments you can not fail to pay your regular social security either. If another new debt appears in the Executive Collections department, your agreement will be canceled.
(Here is why you need to make sure that your last two months are paid before entering into an agreement. )
What if you cannot apply for one yet
This could be the case if the 20% to settle is un-affordable at the moment or you still need to pay previous months.
You can always reduce the debt by making payments of any amount.
This option will not stop the attempts to collect the money via embargoes.
However, the place to start is paying the current month to avoid overcharges.