Defer social security contributions for November and December 2020
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Defer social security contributions for November and December 2020

According to the circulars dated November 17, 2020 and December 17, 2020 from the GKV-Spitzenverband, the interest-free deferral without collateral is to be granted for the payroll period November and December 2020. This applies at most until the contributions are due in January 2021, i.e. until 27.01.2021. What you need to know about deferring social security contributions for November and December 2020 can be found here.

The following conditions must be met in order to defer social security contributions

  • Entrepreneurs must first use the economic aids provided, including short-time allowance. Economic aid must be applied for before applying for deferral.
  • The application can only be made using the application form.
  • You do not need a security deposit for the deferrals.
  • Deferral interest does not accrue.
  •  It is possible to readjust existing installment agreements that cannot currently be met or can only be met in part.

Deferral of social security contributions for short-time work

If a company has applied for short-time allowance, the deferral of social security contributions attributable to short-time allowance for November and December 2020 will end as soon as the reimbursement from the Federal Employment Agency is in the company’s accounts. The forwarding should then take place without delay.

The deferral applies to both employee and employer contributions. It is not possible to defer contributions to individual insurance branches. However, it is possible to defer only part of the total social security contribution. The deferral application should be submitted to the relevant health insurance before the contributions are due on 26.11.2020 or 28.12.2020.

This is how the request for „Defer social security contributions for November and December 2020“ is justified.

You must show that collecting the full social security contributions will cause you, as an employer, significant hardship. In the current situation, this includes the fact that you as an employer are experiencing liquidity difficulties due to the shutdown and/or have suffered significant revenue losses. You should provide evidence that you have applied for the announced economic aid but have not yet received it. We recommend that you only consider this option if you have exhausted all other options for obtaining liquidity.

Is it also possible for voluntarily insured self-employed persons to have their social security contributions deferred?

Yes, self-payers can also defer their contributions to statutory health and care insurance. However, you should check whether a reduction in contributions is a better option. Currently, health insurance companies may accept other proof of a change in the financial situation of self-employed persons instead of income tax statements. This includes, for example, declarations from a tax advisor, financial and business evaluations, or credible declarations of significant sales losses.

Before a deferral, voluntarily insured self-employed persons should contact their health insurance, as a reduction in contributions may also be possible.

„Defer social security contributions for November and December 2020“ and our assessment of this.

In our opinion, deferring social security contributions should be the last resort to avoid short-term cash outflows. First of all, you should examine all other measures. We will be happy to support you in this.

Please remember that a deferral does not mean that the obligation to pay contributions no longer applies. Only the payment deadline is postponed here to a maximum of January 27, 2021. This is when the payment must be made. Please ensure that you have sufficient liquidity then. It is not certain whether further deferrals will be possible then.

If you have any questions, please contact us.

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Lars Rinkewitz
Lars Rinkewitz
Tel.: +49 211-90 86 70