Circular 21/2019 EFKA: Insurance of partners and / or Administrators of OE, EE, Ltd. and Private Capital company
Rel: Documents D.15 / D ‘/ 619/15 / 13-04-2018 and F.10141 / 44090/1189/2019 (2018) documents of the Ministry of Labor, Social Security and Social Solidarity.
According to the provisions of the article 55 of Law 4387/2016, at the insurance of EFKA shall be compulsorily insured as of 1/1/2017, the persons of the companies that are included at the site of the EFKA, with the exceptions as specifically provided by the provisions of the same law.
The above law regulates issues related to the way in which insurance contributions are calculated from 1/1/2017.
The above related documents provide clarifications of which partners or administrators are subject to social security contributions for the legal form of OE, EE, Ltd. and Private Capital companies.
The following guidelines are provided for the implementation by the EFKA services:
A. SUBJECT TO INSURANCE OF MEMBERS / PARTNERS AND ADMINISTRATORS OF OE, EE, LTD, PRIVATE CAPITAL COMPANIES
MEMBERS / PARTNERS
- Members / Partners of Partner Companies as well as Limited Liability Companies, as long as the scope of business of these companies is professional, industrial or commercial, are compulsory subject to insurance in accordance with the provisions of the OAEE. (Article 1 of Presidential Decree 258/2005).
- The single partner of the Private Capital Company is compulsory subject to insurance in accordance with the provisions of OAEE. (par. 9 Article 116 Law 4072/2012 case a)
- The partners of the Private Capital Company are not subject to insurance apart the above case. Those partners may be voluntarily insured in accordance with the provisions of OAEE. (par. 9 Article 116 Law 4072/2012 case b)
- The members / partners of the above companies (OE, EE, Ltd.) who act as managers of the company, for the performance of their management duties, are compulsorily subject to insurance under the provisions of IKA-ETAM (article 1 par. 3 of Law 1759/1988).
- Partner of Single member Private Capital Company who performs management duties shall be subject to insurance in accordance with the provisions of the UNECE. (par. 9 Article 116 Law 4072/2012 case a)
- Partner of Private Capital Company who acts as administrator shall be subject to insurance in accordance with the provisions of the OAEE. (par. 9 Article 116 Law 4072/2012 case a)
- Administrator of OE, EE, Ltd. who is not a member / partner (Third Party) is subject to insurance in accordance with the provisions of IKA-ETAM. (Article 2 A.N. 1846/1951)
- Administrator of Private Capital Company, who is not a member / partner and haw been appointed by the Articles of Association or by decision of the Partners, is compulsorily subject to insurance in accordance with the provisions of the OAEE. (par. 9 Art. 116 Law 4072/2012)
B. CONTRIBUTIONS FOR OE, EE, LTD MEMBERS
Members / Partners of Partner Companies and Limited Liability Companies pay insurance contributions in accordance with article 39 of Law 4387/2016, as applicable.
In particular, the insurance contributions of UN and EU members are calculated based on the profits and of the percentage of their participation in the company, while the insurance contributions of the members of Ltd. are calculated on the distributed dividends.
Persons performing management duties in these companies (OE, EU, Ltd.), we can distinguish the following cases:
1. Member / Partner and Administrator, with no management fee
In case the members / partners that perform management duties in the company, without payment, they pay insurance contributions in accordance with article 39 of Law 4387/2016, as applicable.
2. Member / Partner and Administrator with management fee
Members / partners who perform in parallel management duties in the company and receive remuneration, shall pay social security contributions in accordance with article 38 of Law 4387/2016, under the provisions of article 36 par. 1 L. 4387 / of Parallel Insurance.
The insurance contributions for the amount of the management fee are calculated for main pension, sickness in kind and in money and supplementary insurance, but not for the OAED co-op sectors – OEK – OEE as these remunerations do not derive from an employment relationship but from their corporate status.
In addition, these persons are not registered in the Labor Inspection System ERGANI (Recruitment, etc.) of the Labour Authority
The date of commencement of the contribution on management fees is set from 1/6/2018.
3. Administrator – Non-Partner / Third Party
In case that a third person is hired for the performance of the management duties, in return for remuneration, insurance contributions shall be paid in accordance with article 38 of Law 4387/2016 for all of insurance as well as the affiliated branches of the UAE. D., OEK and OEE
The provisions of article 38 of Law 4387/2016, as in force, regarding the minimum monthly salary, also apply to management fees, as the relevant services are provided systematically and on a regular basis within the same payroll period.
Therefore, in the case of management fees below the monthly remuneration threshold, the IKA-ETAM provisions on reduced employment will apply to the calculation of the insurance days, while in the case of salaries above the threshold, respectively full insurance provisions.
C. INSPECTION PC Partners PC
Partners of Private Multinational PC Capital Companies are not required to pay insurance contributions, unless they are managing duties.
For persons performing management duties in PCs (partners or third parties) the following cases are distinguished:
1. Partner in Monopoly PC and manager
The only one-person IKE partner who is also a manager, pays contributions in accordance with the provisions of article 39 of Law 4387/2016 on the sum of the incomes arising from the exercise of the two activities (dividend and management fee).
2. Partner and multilevel PC manager
A multinational PC partner who is appointed as a manager at the same time, pays contributions on income arising only from the exercise of management and is compensated in accordance with the provisions of article 39 of Law 4387/2016.
The date of commencement of the contribution only on management fees is set as 1/6/2018.
3. Multi-person PC Manager no company (third party)
A third party manager (not a corporation), pays contributions on income arising from the management exercise and is compensated in accordance with the provisions of article 39 of Law 4387/2016.
4. Single-Member PC Manager – third party, non-partner
Single Member Administrator, third party (non-affiliated), is funded in accordance with the provisions of article 39 of Law 4387/2016 and pays contributions on the income arising from the management fee.
D. DISSOLUTION OF INSURANCE / PROCEDURE (Article 38 of Law 4387/2016)
The representation of insurance assets, Members and / or Managing Companies – EU. – Ltd. who perform remuneration management duties (Article 38), will be included in the records of the Detailed Periodic Statement (DPA).
Employers already listed will include this category of insured in the AP which they submit to other staff.
Businesses that have not been registered as employers by the HFSA should register in the Employer – Controller Registry in the usual manner with the competent HFSA Local Authority. their registered office, in order to be assigned an Employer Registry Number and Current Payment Payment ID (ICT).
To display the insurance details of the managers who are either members or third parties in OE, EE, Ltd. in the Detailed Periodic Statement, a prerequisite is the existence of the Employee’s Social Security Number (IDS) and identity information (SUBSCRIPTION – NAME – FATHER NAME – MOTHER NAME – DATE / NAME M. etc.).
In addition to the above, the following should be added:
A. MEMBERS OF CO / EU / LTD PERFORMING PARALLEL AND MANAGEMENT TASKS IN THESE COMPANIES
Code of Activity “0832” with a verbal description: “PERSONS SUBJECT TO IKA-ETHAM WITH ANY OTHER WORKING RELATIONSHIP EXCEPT ASSISTANT, 1988/1979”
> Specialty Code “000858” with verbal description: “MANAGERS OE, EE, LTD” to be attributed for insurance coverage Coverage Code (CCC) “1106” with the following premium rates:
The data – values that must additionally be stated in the fields of DPA. in addition to the distinct CAD, Specialty Code and Coverage Package are the following:
■ In the field “36”: “Remuneration Type” of the DPA, the Remuneration Type Code “01” will be used exclusively.
■ In the field “37”: “Insurance Days” will be entered the person’s working days.
B. THIRD PERSON PERFORMING MANAGEMENT DUTIES IN BUSINESS
Their insurance is reportedly known.
C. The financial results of self-employed persons after the application of this Law will be settled through the annual clearing procedure.
SUBMISSION OF ADS – PAYMENT OF DUTIES
For the payroll periods, 6/2018 to 3/2019 if the DUs, Normal (01) or Supplementary (04), are submitted by 30/6/2019 by magnetic or digital means to the competent Tax Office OK. of the employer’s domicile in respect of the insurance of the persons referred to herein shall be deemed to be within the prescribed period.
The Acts of Additional Extra Charge (PEEP) resulting from the submission of the above DPAs should be annulled.
The insurance contributions of the above payroll periods will be considered timely provided they are paid by 30/6/2019.
The resulting Extra Charges Acts should be annulled or reduced at all times.
For the payroll periods from 4/2019 onwards, the submission of APD and payment of the corresponding insurance contributions will be made as is known.
In view of the above, we ask that the competent departments of the EFSA inform the business operators concerned about insurance coverage and the new way of calculating contributions.