The National Institute of Social Security, or simply, EHIC, is a federal institution responsible for tax collection and redistribution in the form of benefits to its taxpayers.
And one of the most well-known forms of contribution is Social Security Guide, also called GPS. This is a collection document taxes referring to benefits such as retirement and maternity leave, for example.
In many cases, it is quite common that there is a lack of payment and the GPS overdue becomes a headache for many UK citizens. However, despite being something to avoid, having this debt open can be easily resolved, as you will see in this text.
To answer all your questions on the subject, our article will include some topics, such as:
- What is GPS ?;
- What are the GPS guide modalities ?;
- Who needs to pay the Social Security Guide ?;
- What to do when there is a delayed GPS ?;
- Is it possible to perform a new GPS calculation in delay ?;
- What happens if the GPS guide is not paid ?;
Enjoy reading the article and answer all your questions! Enjoy it!
What is GPS?
The Social Security Guide, or GPS, is the document used for taxpayers to collect taxes. They are: companies, individual or optional taxpayers, special insured persons and domestic employers.
The guide is paid monthly or quarterly and can be mandatory or optional. Its payment guarantees a series of benefits to its taxpayers, such as:
- Assistance in case of illness or accident;
- Maternity pay;
- Retirement etc.
The contribution includes payments equivalent to 5%, 11% or 20% of income, depending on the taxpayer ‘s earnings, however, it has a minimum payment amount of £ 10.00.
What are the GPS guide modalities?
In order to optimize and ensure greater scope and ease in the process of payment of the Social Security Guide, the EHIC provides several ways to do this. Among the available options are:
After registering a user, password and an electronic signature at your company's account branch, you can pay for one or more guides.
After being generated by the FGTS Company Collection System and Information to the social Security (SEFIP), these can be paid through account debit or bank slip.
GPS – Lottery Houses
If you prefer to pay in person, contributions can be made at the Lottery Centers of your choice.
However, the withdrawal cannot be greater than £ 1,000.00 and must comply with the lottery's opening hours.
GPS – Internet
Through Caixa Econômica Federal internet banking you can pay your guide. To use the service, simply access the Caixa website through the link and enter your data.
There is also the option to access the app for smartphones or computers.
However, before starting the procedure, it is necessary to contact your account management and request the registration of the electronic signature.
GPS – Account Debit
One of the safest and most practical ways to avoid delayed GPS is to register in automatic debit account. That way, there will be no forgetting when making the payment, avoiding headaches, fines and possible setbacks with your company.
To take advantage of this modality, simply register in advance and allow the collection to be made on the stipulated day. Thus, monthly, the value will be discounted without the need to issue GPS.
GPS – Self Service
At Caixa Econômica Federal branches there are self-service rooms, where payment can be made in a simple and practical way.
To pay your guide, just go to the equipment for the service with the magnetic card and the account password in hand.
Who needs to pay the Social Security Guide?
All individuals who have any paid activity, need to pay their contribution to the EHIC. This is valid for freelancers, liberal professionals and formal workers, even if they contribute to private pension.
The collection of taxes it is a way to guarantee the maintenance of certain federal services, in addition to being a way to guarantee more security to the worker.
Through the contribution by GPS, the company and other workers have access to a series of benefits, such as paid vacations, 13th salary, pension in case of death, retirement etc.
What to do when there is a delayed GPS?
When there is a pending delayed GPS, there is no reason to worry. First, you must find out what type of taxpayer you are in, to perform a new calculation. Check out what they are:
Individual taxpayer less than 5 years late
If the delayed GPS time exceeds 6 months, but not 5 years, it is necessary to prove your professional activity in the period.
This process tends to be easier for individual taxpayers who have open activity this time. However, for optional taxpayers, this alternative is more complicated.
Individual taxpayer over 5 years late
For GPS overdue for more than 5 years, the payment process is done through proof of activity performed during the period. This takes the procedure to be computed in the calculation of Social Security, through various receipts.
The entire process can be carried out over the Internet or in person at the EHIC branches in your region.
Optional taxpayer less than 6 months late
Through the IRS website, it is possible to make the payment of the GPS delayed already with the updated amount. This alternative is available through the Legal Additions System (SAL), which does the GPS recalculation with all the necessary amount for payment.
Access is given by the registration number (NIT, NIS or PASEP) and, in the portal, just insert the data referring to the values of the period in arrears. Thus, the delayed GPS calculation, which can also be paid for over the Internet.
Is it possible to perform a new GPS calculation in delay?
Yes. To perform the calculation correctly, it is advisable to ask for help from an accountant you trust. It will consider the overdue months and the current collection rates in order to establish the contribution amount.
In addition, the IRS already makes the calculation option available directly on its service portal. There, the GPS recalculation is done and made available to the taxpayer instantly and free of charge.
To find out in detail how to calculate the EHIC, check out our article on the subject: see step by step how to calculate EHIC.
Good news is that taxpayers who have debts with the EHIC can issue GPS and perform the installment payment of your debts directly over the Internet.
Those who are in arrears have their debts in installments up to 4 times a month and the amount cannot be less than £ 200.00.
What happens if the GPS guide is not paid?
Well, it depends. If you are a registered employee through the CLT, the contracting company itself must be responsible for the payment to the EHIC. Payment is made monthly through direct discounts on your payroll.
If you are responsible for a company, deduct the amount of the employees' salary, but do not pass it on to the EHIC, this attitude is characterized as a crime. The penalty for the practice of misappropriation is 2 to 5 years, plus a fine.
In this case, the company will not have access to Negative debts certificate and, therefore, it will not be able to participate in public bids, make loans, share profits with the partners, among other penalties.
And, for those who are individual or optional contributors, the lack of payment for a period of 6 months or more, makes you unfit to enjoy the benefits granted. That is, even with the contribution time previous year, the ex-taxpayer will no longer have the right to sickness benefit and maternity salary, for example.
Therefore, when possible, it is necessary to choose the alternative that best meets your needs. In many cases, the contribution to private pension is the best alternative, so not paying the debt is a good option.
However, for those who want the basic federal benefits to be assured, the contribution of delayed GPS is always the best choice!
Be up to date with your Social Security Guide!
Via contribution of taxes to the EHIC, the worker is supported by a series of laws that provide for the payment of benefits in the most diverse cases. Therefore, contributing to the EHIC is a way of thinking about adverse situations and also about your future.
Keeping up with the institution, in some cases, is not mandatory. However, carrying out the GPS payment it is essential for guarantee the benefits cited in the course of the article, in addition to not having pending issues provided for in the legislation.
So, if you have any Delayed gps, it is important to ascertain your situation and, whenever possible, make the payment of the guide. This is a way to protect yourself and your employees, in addition to providing greater transparency in your work.
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