With the new contribution system for freelancers introduced in 2023, your payments are no longer based on a standard rate. Instead, your contributions are linked to your actual net income. This change aims to be fairer, but it also brings some important updates you need to understand. Let’s break it down.

What is contribution regularization?

 In 2023, every freelancer selected a provisional contribution base based on an estimate of their annual income. Now that the year has ended, Social Security will review those contributions against your actual income as reported to the tax authorities. If you overpaid or underpaid, they will adjust the difference.

What are the possible outcomes?

1. You overpaid:

If your actual income was lower than your estimate, you’ll receive a refund before April 30, 2025.

✨ Pro tip: You can choose to keep the higher base to improve your future benefits.

2. You underpaid:

 If your actual income was higher, you’ll need to pay the difference. You’ll have one month from the notification to make the payment.

3. Everything matches:

 If your provisional base matches your actual income, there’s nothing more to do. Case closed!

4. If you don’t take action:

If you don’t select an option or notify Social Security, they’ll automatically apply the base calculated according to your actual income. This might result in a lower base unless you explicitly choose otherwise.

When will you be notified?

Social Security started sending notifications in December 2024, and this process will continue gradually until April 2025. If you receive a letter or electronic notification, review it carefully to understand your situation.

Where can I manage this?

• IMPORTASS, the Social Security portal: Here, you can review your regularization details and carry out any necessary procedures. Everything is accessible online.

• Dedicated phone line: Social Security has set up 91 908 70 67 to handle questions about the process. It’s a good option if you need clarification.

• Consult your advisor: At Taxmentum, we specialize in tax and labor matters for freelancers. If you’d rather focus on your business (and not on these procedures), we can take care of everything. We’ll review your case, handle the paperwork, and help you make the best decisions. With us, it’s all much easier!

What are your options?

• Keep a higher base: If you’ve been contributing at a base higher than the one calculated for your actual income, you can choose to maintain it to improve future benefits (think pensions, leave, etc.).

• Request a refund: If you’re entitled to a refund, you can accept it or waive it to keep a higher base. Both options must be exercised by January 31, 2025.

Recommendations

1. Check notifications: Stay alert for any letters or electronic notices from Social Security.

2. Evaluate your options: Deciding whether to accept a refund or maintain a higher base can have long-term implications.

3. Meet deadlines: Whether for payments or exercising options, be sure to stick to the indicated deadlines to avoid complications.

4. Act in time: If you don’t notify Social Security of your decision, they will automatically apply the base according to your actual income, leaving no room for adjustments later.

💡 In summary: This new system is designed to align your contributions with your actual financial situation. It might seem a bit overwhelming, but with clear information and the right support, it’s manageable.

 If you have questions or want to avoid the hassle, at Taxmentum, we’re here to help. 🚀 Let’s talk, and we’ll take care of everything!