Review of the extraordinary benefits for cessation of activity regulated in the 4th Additional Provision of RD-Law 30/2020, of September 29

Any means of notification will be admitted to present the allegations that it deems appropriate. However, at They will provide an immediate acknowledgment of receipt and the possibility of monitoring the processing status online. Furthermore, allegations received by this means will be resolved on a preferential basis.

However, you can also send us your allegations by any other means (recommending that it be a means that reliably certifies delivery).

 Check the address of your nearest management center: Fraternidad.com/centros .

If you are the advisor of the self-employed worker and you have a digital office user, we recommend that you carry out the allegation process by accessing through the following link:  Fraternidad.com/oficinadigital

In any other case, if you do not yet have a Digital Office user, you can process allegations through the following address:

Send us your allegations following the steps described in this manual.

During the review, the following points will be analyzed:

a) Having been a recipient until September 30 of POECATA 1 or until June 30, 2020 of PECATA  and maintaining this situation after the review that the Mutual Fund has been able to make of them.

b)   Be registered in the Special Social Security Regime at the time the benefit accrual begins.

c)  Have a minimum grace period of 12 months of contributions upon cessation of activity (CATA) immediately prior to the start of the benefit.

d) Be up to date with contributions with Social Security at the time the accrual of the benefit begins or have a deferral recognized prior to said date.

e)  At the time of requesting the benefit, comply with all labor and Social Security obligations that you assumed with respect to all the workers under your care (if you have them).

f) Not be retired, nor have reached the ordinary age to access it (unless you do not have the necessary contributions to access retirement).

g) Credit a reduction in turnover during the fourth quarter of 2020 of at least 75% in relation to the same period of 2019.

h)  Not having obtained during the fourth quarter of 2020 net returns higher than €5,818.75 (nor does the proration of the net income for said quarter exceed €1,939.58/month).

As indicated in the previous section, there are two ways to access the benefit: being a recipient until September 30, 2020 of POECATA 1 or having received PECATA until June 30, 2020.

This incident arises when:

a)    In the event that access to the benefit had been as extension of POECATA 1 and this, after review, will not prove its status as a beneficiary of the same as of September 30, 2020. In this case, an attempt is made to recognize the benefit under the condition of having received the PECATA until June 30, 2020, but there is some impediment to verifying said circumstance.

b)    Access to the benefit is under the condition of having received the PECATA until June 30, 2020 and said situation is not correctly accredited.

In both cases, it must be proven that you were a beneficiary of the PECATA benefit until June 30, 2020. If this has not been proven, the most common causes are the following:

• You were paid the PECATA due to reduction in billing and you canceled the Special Regime before June 30, 2020.
• You requested the termination or renunciation of the benefit prior to June 30, 2020.
• Became a retirement or permanent disability pensioner (incompatible with the development of his or her self-employed professional activity) prior to June 30, 2020.
• He had a deferral of debts for contributions recognized by the General Treasury of Social Security and during the period 03/14/2020 to 06/30/2020 failing to meet any of the amortization deadlines and did not pay off the remaining debt within the following 30 days.
• After the recent review of the provisionally recognized PECATA, some incident has been detected that has prevented us from recognizing that the benefit was correctly recognized or paid until 06/30/2020.

In this case, you may provide any legally accepted documentation that you consider can prove that you were a beneficiary of PECATA until 06/30/2020 and that said recognition has not been altered after the review of the provisional agreement.

It should begin by clarifying that affiliation to Social Security is the responsibility of the General Treasury of Social Security (TGSS) and that the Mutual Fund can only access to verify the information, but cannot modify it.

Within the verification acts in the review of this benefit, the Mutual Fund has agreed to verify the affiliation status that, today, appears in TGSS for the date of access to the benefit. It could be that since you requested the benefit there has been some modification in your affiliation that affected the provisional recognition that was given to you.

In these cases, you must request a certificate from the TGSS indicating that as of 10/01/2020 you were registered in the Special Regime and that said registration has not been subsequently revoked. Alternatively, it would be enough for the TGSS to regularize the information in its database and the Mutual Fund would agree to verify it directly.

In any case, you can always provide any legally accepted documentation that you consider can prove the registration requirement in the Special Regime.

This incident determines that the Mutual Fund, with the information to which it has had access, has not been able to prove that it has contributed for the contingency of cessation of activity for at least the 12 months immediately prior to the start of this benefit.

In this sense, you must take into account the following considerations:

• If you were quoting at a flat rate, as a general rule and unless expressly chosen on your part, said flat rate did not include coverage for cessation of activity.
• Contributions for cessation of activity that have already been taken into account for the recognition of a cessation of activity benefit (ordinary) cannot be computed again to cover the 12-month gap in contributions for the contingency of cessation of activity.

You can prove the deficiency by providing contribution receipts from the General Social Security Treasury (TGSS), from the 12 months prior to the start of the benefit, which show the fee for cessation of activity coverage. You could also prove it through a certificate from the TGSS stating the periods of coverage for the contingency of cessation of activity that you have had in the last 4 years.

In any case, you can always provide any legally accepted documentation that you consider can prove that you were up to date with your Social Security contributions.

First of all, we must indicate that the debt information has been obtained from the databases of the General Treasury of Social Security (TGSS) and that the Mutual Fund only has consultation access to said data, and cannot clarify or modify said information.

To prove the non-existence of the debt, there are the following alternatives:

a) Provide a certificate from the TGSS that certifies that on 10/01/2020 you were up to date with all debts with Social Security.

b) Provide a resolution from the TGSS to defer the debt that may have been recognized as of 10/01/2020. Said resolution must be prior to 10/01/2020 and be accompanied by documentation that proves having complied, in the period 10/01/2020 to 01/30/2021, with the amortization periods indicated in the aforementioned resolution.

c) If during the receipt of the benefit you received an invitation to pay the owed installments, you may provide documentation to justify that you were up to date with said installments within 30 days of receipt.

Otherwise, said invitation will have been made to you along with the hearing process and, therefore, you will have 30 calendar days to pay all the debt, prior to 10/01/2020, that you owed with Social Security. If you pay said debt, you must provide proof of payment of the debt and a certificate from the TGSS that you are up to date with payment as of 10/01/2020.

Important: For the purposes of catching up on payment of the debt prior to 10/01/2020, the recognition of a debt deferral after said date will have no effect (only the effective payment of the debt will have that effect).

In any case, you can always provide any legally accepted documentation that you consider can prove that you were up to date with your Social Security contributions.

First of all, we must indicate that this information has been provided to us by the General Treasury of Social Security (TGSS) itself and that the Mutual Fund does not have the option of verifying these details.

In these cases, you must request a certificate from the TGSS indicating that at the time of requesting the benefit (section 9 of DA 4 of RDL 30/2020) you were up to date with the labor and Social Security obligations of the workers under your charge.

In any case, you can always provide any legally accepted documentation that you consider can prove that you were up to date with your Social Security contributions.

The benefit that is being reviewed cannot be recognized for those workers who, at the time of requesting the benefit, were retirement pensioners or were of normal retirement age and had the necessary contributions to do so.

During the review process of the provisionally recognized benefit, the Mutual Fund has detected that he was a retirement pensioner prior to 10/01/2020 or that, due to his age, he could be a possible beneficiary of said pension. In this sense, the Mutual Fund, not having all the information, presumes that the retirement age is 65 years and that it has the necessary eligibility to access the benefit.

In order to prove that you did not have the status of a retirement pensioner or that you had not reached the ordinary retirement age or that you did not have the necessary deficiency to access said pension, you must provide a certificate from the National Social Security Institute (INSS) that certifies these extremes.

Said certificate can be obtained in the following ways:

-     Request it in person at one of the Social Security Interested Persons' Attention Centers (CAISS).

-     Obtain it online through Your Social Security Electronic Headquarters.

Steps:

1. Click on the “Interested” section and identify yourself by one of the means offered: digital certificate, Cl@ve, SMS,…).

2. Save a screenshot of the information that is shown as soon as you enter, paying attention that it shows your name (at the top) and the information about contributions and the period remaining to reach ordinary retirement age.

3. Request the “Non-pensioner certificate” located under the “Other procedures” section.

In any case, you can always provide any documentation admitted by law that you consider can prove that you met the conditions of access to the benefit because you are not a retirement pensioner, nor do you have the ordinary age to access it or do not have the necessary contributions to request it.

This may be due to the fact that the Mutual Fund, with the information at its disposal, has not been able to prove that in the fourth quarter of 2020 there was a reduction in turnover of at least 75%, compared to the fourth quarter of 2019.

In relation to the billing reduction requirement, this may be met in one of the following ways:

1) the reduction will be presumed accredited, without having to provide any type of additional documentation , when the professional activity carried out during the fourth quarter of 2020 will be among those that experienced a reduction of more than 7.5% in the average daily number of active workers affiliated with the Social Security system, during the period of receipt of the benefit, in relation to the fourth quarter of 2019 (second additional provision of Royal Decree-Law 3/2021, of February 2).

2) Providing tax documentation and/or accounting that reliably certifies the reduction in billing required by the standard.

You can justify access to the service by providing the following form:

This form, depending on the taxation method, must be accompanied by the following documentation:

a) Taxation by direct estimation:

General rule only the 303 models corresponding to the 4th quarter of the years 2019 and 2020 must be submitted.

Exceptions: (not required to present form 303 as a natural person).

• Administrator and/or partner: you must present form 303 of your company corresponding to the 4th quarter of the years 2019 and 2020 and the documentation that proves your connection with it (membership book or shares registered in the commercial registry, company deeds or any means of proof admitted by law). If you are an administrator of several companies, you must present this documentation for each of them.

b) Taxation by objective estimate:

They must present model 131 corresponding to the 4th quarter of the years 2019 and 2020, along with the sales and income book corresponding to the 4th quarter of the years 2019 and 2020.

Alternatively to the previous methods, you may also justify access to the benefit by alleging and documenting that the activity you carried out and justified its inclusion in the Special Regime was different from the one that the Mutual Fund has evaluated in its review and that it was really one of the activities affected by the reduction of more than 7.5% in the average daily number of active workers affiliated with the Social Security system, during the period of receipt of the benefit, in relation to the fourth quarter of 2019 (Second additional provision of Royal Decree-Law 3/2021, February 2).

In this case you must regularize your situation in the TGSS and provide the following documentation:

- TGSS document that certifies the new activity and covers to the period 10/01/2020 to 01/30/2021.

- Certificate of Status in the census of economic activities of the AEAT.

- Any other document admitted by law that accredits or endorses the exercise of the activity that you intend to allege.

This may be due to the fact that the Mutual Fund, with the information at its disposal, has not been able to prove that during the fourth quarter of 2020 net returns greater than €5,818.75 were not obtained (nor that the proration of net returns in said quarter did not exceed €1,939.58/month).

You can prove compliance with this requirement by providing the following form:

Said form, depending on the type of taxation, must be accompanied by the following documentation:

1. Taxation by direct estimate:

General rule: you should only submit models 130 corresponding to the 3rd ^er and 4th quarter of 2020.

Exceptions: (those who are not required to submit the model) 130)

• Administrator and/or partner: you must present form 190 and the list of all payrolls for the year 2020. In the case of being an administrator of several companies, you must present this documentation for each of them.
• Any other person not required to present form 130: must present form 036, the sales and income book, along with the purchases and expenses book corresponding to the 4th quarter of 2020.

2. Taxation by objective estimate:

They must present model 131 corresponding to the 4th quarter of 2020, the sales and income book, along with the purchases and expenses corresponding to the 4th quarter of 2020.

This may be due to the fact that the Mutual Fund, with the information at its disposal, has not been able to prove that in the fourth quarter of 2020 there was a reduction in turnover of at least 75%, compared to the fourth quarter of 2019; nor that during the fourth quarter of 2020 net returns greater than €5,818.75 have not been obtained (nor that the proration of net returns in said quarter exceeds €1,939.58/month).

In these cases, the documentation related to the two previous sections must be submitted (although the form does not have to be submitted in duplicate, since the same form will serve to prove both situations).

There are several reasons that may result in a higher benefit being paid than what should have been due. Among them, the most common are the following:

If the previous limits were not exceeded, the receipt of the CATA.COVID-19 benefit would be compatible with the situation of pluriactivity, although on the days in which this “compatibility” overlap occurs, the benefit would be paid at 50%.

1. Overlap with other Social Security benefits: this CATA.COVID-19 benefit is not compatible with the receipt of other Social Security benefits that, in turn, are not compatible with the development of self-employed activity. If during the receipt of this CATA.COVID-19 benefit you also benefited from other Social Security benefits (temporary disability, birth and care of a minor - former maternity/paternity -, risk during pregnancy or breastfeeding, permanent disability, retirement,...) the days in which both benefits coincided simultaneously will be deducted and claimed from this CATA.COVID-19 benefit.
2. Incompatibility with work done as an employee and/or unemployment: this CATA.COVID-19 benefit is incompatible with the performance of work as an employee or with the receipt of unemployment benefit, as long as the net income from self-employment and the income from work as an employee exceed 2.2 times the minimum interprofessional wage or exceeding the income from work as an employee. 1.25 times the amount of the interprofessional minimum wage.
   
   If the previous limits were not exceeded, the receipt of the CATA.COVID-19 benefit would be compatible with the multi-activity situation, although on the days in which this “compatibility” overlap occurs, the benefit would be paid at 50%.

3. Differences in the regulatory base: due to the difficulties in accessing information in the first period of the pandemic, CATA.COVID-19 benefits could be recognized with a higher regulatory base than what would have actually corresponded. If this difference had been detected during the review, the benefit would have been recalculated in accordance with the correct regulatory basis and any differences that may exist would have been claimed.
4. Differences in the daily amount paid: Exceptionally, this may be due to having incorrectly applied the maximum and minimum limits established for this benefit (depending on the IPREM and the number of dependent children) or to the overlap with “compatible” multi-activity days that have been paid at 100% instead of 50%.
5. Differences in the days of benefits paid. If during the review it was detected that the benefit was paid for more days than would have been due, the benefit would be recalculated and the differences would be claimed. The differences in benefit payment days may be due to different situations, in addition to those stated in sections a) and b), such as:

• Having recognized the accrual of the benefit since 10/01/2020, in applications received after the deadline.
• Having paid the benefit after leaving the Special Regime.
• Having paid the benefit after reaching the ordinary retirement age, or having become a retirement pensioner or permanent disability.

When in the hearing process it is indicated that incidents have been detected on the start date of the benefit, it means that during the review of the CATA.COVID-19 benefit it has been determined that the payment of the benefit began on a date earlier than what should have corresponded (based on the information in the file).

The start date of this CATA.COVID-19 benefit depended on the date of submission of the application. Those applications submitted before 10/23/2020 (inclusive) accrued the benefit from 10/01/2020, the rest accrued the benefit from the day following their presentation.

You may justify access to the benefit from a date other than the one calculated by the Mutual Fund by providing any legally accepted documentation that proves the submission of your application on a date other than that assessed by the mutual insurance company.

When in the hearing process it is indicated that incidents have been detected on the end date of the benefit, it means that during the review of this CATA.COVID-19 benefit it has been determined that the payment of the benefit was finalized on a later date than it should have corresponded (based on the information in the file).

The main causes that may lead to differences in the end date of the benefit are the following:

• Having paid the benefit until after it caused withdrawal from the Special Regime.
• Having paid the benefit after reaching the ordinary retirement age, or having become a retirement pensioner or permanent disability.

You may justify access to the benefit until a date other than that calculated by the Mutual Fund in the review of this CATA.COVID-19 benefit, providing any documentation admitted by law that distorts the facts previously stated, such as:

• Updated work life report, or TGSS certificate, stating that you did not leave the special Social Security regime in the period 10/01/2020 to 01/30/2021.
• Certificate from the INSS stating that you have not been recognized as a retirement pensioner or due to permanent disability in the period 10/01/2020 to 01/30/2021 (or, where applicable, proving that even though you are of ordinary age to access retirement, you do not have sufficient contributions).

If in the hearing process it has been indicated that possible overlaps in Social Security benefits have been detected, it is because the information provided to the Mutual Insurance Companies by the National Social Security Institute (INSS) has detected that they have been a beneficiary of some other Social Security benefit incompatible with self-employment.

Given that the Mutual Fund cannot autonomously verify this information, to refute it, it must provide, along with its allegations, a certificate issued by the INSS reporting the Social Security benefits that it may have received in the period 10/01/2020 to 01/30/2021, clearly indicating: type of benefit, start date and end date.

In the event that you have not been a beneficiary of any benefit, you must provide a certificate from the INSS that expressly indicates that you have not received any Social Security benefit in the period 10/01/2020 to 01/30/2021 (except, obviously, for this CATA.COVID-19 benefit).

If you belong to the Special Regime of the Sea, in any case, a certificate from the Social Institute of the Navy will be necessary in which it is expressly indicated that you were not a beneficiary of the aid for fleet paralysis in the period 10/01/2020 to 01/30/2021 or, if you received them, the exact dates on which you received them (start and end of the aid).

If in the hearing process it has been indicated that possible incompatibilities have been detected, or partial compatibilities with the performance of employed work or with the receipt of unemployment benefits, it is because in the information provided to the Mutuals by the General Treasury of Social Security (TGSS) and in the verifications that the Mutual has carried out autonomously, these overlaps have been detected in the period between 10/01/2020 and 01/31/2021.

You should know that the extraordinary cessation of activity benefit that was paid may be partially  compatible with employed work, provided that the following circumstances are met (section 10 of the DAª of RD-law 30/2020):

1. That the net income from from self-employment added to income from work as an employee does not exceed 2.2 times the minimum interprofessional wage.
2. That in no case may income from self-employment exceed 1.25 times the amount of the interprofessional minimum wage.

If these conditions were met, the days in which the receipt of the benefit overlaps with the performance of work as an employee, would be received at 50% of the minimum contribution base that corresponds to your activity.

Otherwise, those days would be incompatible with the receipt of the benefit and will be declared as improperly paid.

Alternatives to respond to this section of the hearing procedure:

1. If you did not perform any work as an employee: you must provide, along with your allegations, any legally accepted documentation that refutes the facts previously stated, such as:
   • An updated certificate of working life issued by the TGSS.
   • A certificate from the State Public Employment Service (SEPE) stating the unemployment benefits received in the last 4 years or which expressly indicates that you were not a recipient of unemployment benefits in the period between 10/01/2020 and 01/31/2021.

2. If you did any work as an employee, but you consider that you meet the conditions for it to be partially  compatible with the receipt of the benefit: you must provide, along with your allegations, the tax and accounting information that allows you to prove that the income limits previously indicated are not exceeded in the period between 10/01/2020 and 01/31/2021

You can justify this information by providing the following form:

Said form must be accompanied by the following documentation:

• • To prove the salaries received for the work performed by an employee: a certificate from each of the companies in which you have provided services in the period between October 1 of 2020 and January 31, 2021 (alternatively, you can present the payrolls corresponding to said periods).
• • The documentation to be provided to prove the billing carried out for work carried out on your own account will depend on your taxation method:

1. Taxation by direct estimate:

In all cases, the sales and income book corresponding to the month of January 2021 must be presented.

Additionally, form 303 must be submitted corresponding to the 4th ^or quarter of 2020(*).

(*) Alternatively, for those who are not bound To present form 303 as a natural person, the following documentation must be provided:

• Administrator and/or partner:  you must present form 303 of your company  corresponding to the 4th quarter of 2020 and the documentation that proves your connection with it (partner's book or registered shares registered in the commercial registry, company deeds or any means of proof admitted by law). If you are an administrator of several companies, you must present this documentation for each of them.
• Any other person not required to present form 303:  must present form 036 and the sales and income book corresponding to the 4th quarter of 2020.

2. Taxation by objective estimate:

They must present the sales and income book  corresponding to the period between October 1, 2020 and January 31, 2021.

When in the hearing process it is indicated that incidents have been detected on the end date of the benefit, it means that during the review of this CATA.COVID-19 benefit it has been determined that the payment of the benefit was made for an amount greater than that which would have corresponded.

In order to review your benefit again, you must provide, along with your allegations, the following documentation and information:

• Certificate of contribution bases issued by the General Security Treasury, which shows the 18 months prior to July 2020 (or the months in which you were registered in the special regime).
• Family book, to verify the number of dependent children.
• Economic Activities Tax for the year 2020, to verify the activity carried out.

Once the deadline granted in the hearing process has passed, the Mutual Fund will proceed to issue a final resolution evaluating the allegations and/or additional documentation that it may have received.

With the information in the file, it will issue one of the following definitive resolutions:

1. Resolution that elevates the provisional agreement to final: it will be issued when the allegations and/or documentation provided have allowed the detected incidents to be resolved favorably. In this case, access to the benefit and also the amounts paid will be declared correct.
2. Resolution that annuls the provisional agreement: if, despite the allegations and/or documentation provided, they do not allow clarification of the incidents that prevented recognition of access to the benefit and, therefore, to the amounts received. In these cases, a resolution will be issued that revokes the provisional agreement, declares the amounts paid as undue benefits and claims said amounts in their entirety.
3. Resolution that modifies the provisional agreement: will be issued when the allegations and/or documentation provided have made it possible to resolve the incidents that could prevent access to the benefit, but were not sufficient to determine that the total amount paid was correct. In these cases, a favorable resolution will be issued in relation to the right of access to the benefit, but it will declare that part of the benefits paid were improper, proceeding to claim the amounts paid in excess.

As informed at the end of the resolution that has been sent to you, if you are not satisfied with said resolution, you may file a prior claim through judicial channels.

The period to submit the prior claim is 30 business days (that is, excluding Saturdays, Sundays and holidays) counted from the date on which you received the resolution.

Given that this prior claim is mandatory for the initiation of subsequent judicial proceedings, we recommend that you present it by some means that reliably certifies its delivery.

Once the deadline granted in the hearing process has passed, the Mutual Fund has no obligation to analyze the allegations or documentation received. However, if your file has not yet been resolved, the Mutual Fund, in order to resolve it with as much information as possible, will analyze the documentation received (even after the deadline).

On the contrary, if the Mutual Fund receives your allegations and/or documentation once the resolution has been issued, if this is contrary to your interests, you must present a prior claim (in which you may incorporate the allegations and/or documentation that the mutual company could not assess when issuing the resolution).