Management of Social Security registrations and cancellations
Social Security registrations and cancellations is a basic procedure for any company. It is necessary for all workers in a company to be registered, and once the employment relationship has ended, the company itself must process the deregistration.
Below, we will analyse the process of registering and deregistering with the Social Security.
What are registrations and cancellations in the Social Security system?
Social Security registrations and deregistrations refer to the administrative process that records the start or end of an employment relationship, respectively, in Spain’s social security system.
Registration with Social Security occurs when a person starts an employment activity, whether self-employed or employed, and is officially registered in the system to start paying contributions and receiving the associated rights and benefits.
On the other hand, deregistration from social security indicates the end of the employment relationship and, therefore, the temporary or permanent cessation of contributions and, in some cases, of certain rights or benefits. This can be due to situations such as the end of an employment contract, retirement, or the cessation of a self-employed activity.
How to register and deregister with the Social Security system
In Spain, registration and deregistration with the Social Security are procedures that companies, self-employed workers or professionals must carry out when an employment relationship begins or ends. The procedure is as follows:
Social Security registrations
- For employees: Companies are responsible for registering their employees before they start working. This process is carried out through the RED System (Electronic Document Remission) of the Social Security General Treasury (TGSS). Once registered, workers receive an affiliation number, which will identify them uniquely and permanently throughout their working life.
- For self-employed or self-employed workers: These workers must personally register with the Special Regime for Self-Employed Workers (RETA) at the TGSS and, at the same time, they must register with the Tax Agency. Registration with the Social Security is done by presenting form TA0521.
Social Security deregistrations
- For salaried employees: When the employment relationship ends, companies must process the deregistration of their employees through the RED System. It is important that the cancellation is carried out within the established deadlines to avoid penalties. If the contract is temporary, the cancellation must be carried out the day after the end of the contract.
- For self-employed or sole traders: In the event of termination of activity, the self-employed worker must apply for cancellation of the RETA at the TGSS and, at the same time, report the cancellation of the economic activity to the Tax Agency. To process the deregistration with the Social Security, form TA0521 must be filed, indicating the date of cessation of activity.
Aspects to consider
It is essential to respect the deadlines for registration and deregistration to avoid possible penalties. In the case of registrations, they must be made before or at the same time as the start of the work activity. On the other hand, cancellations must be processed immediately after the cessation of the activity or employment relationship.
In the case of employed workers, registration with the Social Security also implies registration with the corresponding Social Security scheme, whether it is the General Scheme or one of its special schemes (agricultural, domestic workers, artists, etc.).
Self-employed workers who decide to temporarily cease their activity but intend to resume it in the future must apply for a temporary leave of absence.
For both procedures, it is advisable to have all the necessary documentation and to consult any doubts with the TGSS or a labour advisor.
How long does it take to be granted a discharge or a leave from employment?
The process of registering and deregistering with the Social Security in Spain is relatively quick, although the response time may vary depending on the type of registration or deregistration and the administrative burden at the time.
For salaried workers, companies must process the registration before the employee starts working. Once the procedure is completed, the process is almost immediate, and the worker is registered in the system. The cancellation must be carried out the day after the termination of the activity or the end of the contract, and the process is equally quick.
For self-employed workers, registration in the Special Regime for Self-Employed Workers (RETA) is carried out almost immediately after filing form TA0521. In the case of deregistrations, once the corresponding form has been submitted, the deregistration is generally effective immediately or the following day.
It is crucial to carry out these procedures within the appropriate deadlines in order to guarantee the worker’s rights and avoid possible sanctions.
If you need advice on how to carry out these procedures, at Asesoría Orihuela Costa we collaborate with you so that you can dedicate yourself to your business.
