As accountants in Palma de Mallorca, we often receive queries from self-employed workers worried about insufficient funds in their account when the Social Security fee is charged. If this has happened to you, here’s what you should know about the consequences and how to resolve the issue to avoid further problems.

When carrying out the registration as self-employed in Palma de Mallorca, we always remind our clients how important it is to keep enough funds available in their bank account. However, unforeseen circumstances do occur, and some people end up facing the consequences.

1️⃣ The debt is generated automatically

When Social Security tries to charge your self-employed quota and there are insufficient funds, the charge is not attempted again automatically. Instead, the unpaid amount is registered as debt in your name within the Social Security system.

2️⃣ Surcharges for non-payment

Failure to pay leads to automatic surcharges that increase the longer you delay settling the debt:

• 10% surcharge: If paid within the month following the failed payment.
• 20% surcharge: If paid after one month, this surcharge is applied plus late payment interest.
• 35% surcharge: If unpaid for more than three months, the penalty can reach this percentage.

Additionally, late payment interest starts accumulating from the very first day of default.

3️⃣ Risk of losing bonuses and rights

If you accumulate several unpaid quotas, you could lose key rights as a self-employed worker:

• Benefits for sick leave, unemployment or retirement.
• Bonuses such as the self-employed flat rate.

4️⃣ Asset seizure if the debt persists

If the debt is not resolved and continues to grow, Social Security may initiate seizure proceedings against your bank accounts or even your personal assets to recover the unpaid amounts.

5️⃣ How to regularize the situation

The fastest way to solve this issue is by visiting the Social Security Electronic Office (Import@ss) to check outstanding debts and download the corresponding payment document.

You can settle the unpaid quota through:

• Online payment through the Electronic Office.
• Bank transfer using the reference number on the unpaid invoice.
• In person at Social Security offices.

6️⃣ Recommendations to avoid surcharges

• Regularly check your bank account to ensure there are sufficient funds on the payment date.
• If you foresee difficulties paying a specific fee, apply for a payment deferral before the debt is generated.
• Consult your advisor to evaluate the best solutions if you are experiencing financial difficulties.

Summary

If there were no funds in your account when the self-employed quota was charged, the debt is automatically generated and accumulates growing surcharges. It’s essential to settle the payment as soon as possible to avoid further penalties, loss of benefits, or even asset seizure.

As accountants in Palma de Mallorca, we help you avoid mistakes and properly manage your obligations as a self-employed worker. Contact us if you need assistance with your payments, deferrals, or any related procedures.