Regularisation of social security contributions: how does it work?

As a self-employed person, you pay quarterly social security contributions. These are calculated based on your estimated income. When the tax authorities forward your actual income to your social security fund 2 to 3 years later, the fund calculates your actual and final social security contributions. After this final calculation, there will be a regularisation. How does this work and what do you need to do? We explain it all here. 

Your regularisation, based on your actual revenue

Your social contributions are provisionally calculated on a flat-rate basis for the first three years and then based on your income from three years ago.
Two years after paying these provisional contributions, the FPS Finance will send you a final calculation based on your actual income. This will be your regularisation notice.

Two possibilities exist:
  • You didn't pay enough
    you'll have to pay more
  • You paid too much
    you'll get a refund on

Is the gap between your contributions and your actual income too large? Then it might be worth optimising your contributions. 

What if you have worked less than 4 quarters?  

How are contributions calculated for an incomplete year? If you have not worked for the whole year, your actual earnings as a self-employed person are automatically converted to an annual basis (prorata) so that you can calculate the contributions due for each quarter of activity. 

Example

You work from 1 January to 30 June and your net income (gross income minus work-related expenses) for this period is €25,000. The final contributions for the first and second quarters of the year in question are then calculated based on the amount of €50,000. 

An example in numbers:

Income (6 months of operation): €25,000 

Proration (annualised conversion): €25,000 x 2 = €50,000 

Calculation of the social security contributions: 

€50,000 x 20.5% of the social contributions = €10,250 

€10,250 x 4.25% = €435,63 (Management costs - tax deductible costs) 

€10,250 + €435.63 = €10,685.63 

Contribution per quarter = €10,685.63/4 = €2671.41 

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Need help with your contributions?

Do you have questions about how to calculate your contributions? Then contact our experts. 

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