One of the most discussed topics lately—especially among employers and financial advisors—is the consolidation of the SGK statement and the withholding tax return. A common question that arises with this merger is, “Has the SGK premium payment date changed?” Let’s clarify this topic.
What Is the Withholding Tax and Premium Service Declaration?
The document that results from combining the withholding tax return submitted to tax offices and the monthly premium service statements submitted to the Social Security Institution (SGK) is called the Withholding Tax and Premium Service Declaration. The merger produces a single declaration that aggregates the withheld taxes, the insured person’s insurance premiums, and their earnings, while also reporting the number of days for which premiums are payable.
Declaration Period and Payment
For the amounts declared under the Withholding Tax and Premium Service Declaration, separate accrual notices are issued for the withheld taxes, service information, and the insured persons’ base earnings.
There is no change in how declarations are submitted: they must be sent by 23:59 on the 23rd day of the month following the relevant month. Calculated insurance and tax premiums must be paid by the 26th day of the month in which the declaration is submitted.
Premiums that previously accrued and were payable by the end of the following month will, as of June 1, 2017, begin to be applied in the pilot city of Kırşehir. For declarations made through the Withholding Tax and Premium Service Declaration, SGK premiums that were previously paid at the end of the month will now be payable on the 26th day of the declared month.
To illustrate: from June 1, 2017, an employer in Kırşehir with two employees submitting the Withholding Tax and Premium Service Declaration for the first time must pay the accrual for the previous month’s premium service statement by June 30, 2017. Because the withholding and SGK premium service statements were merged, the new consolidated form is called the Withholding Tax and Premium Service Declaration. For the same employer, payments that accrue under this name by July 23, 2017, must be paid by July 26, 2017. As this example shows, accruals for withholding and premium service declarations will now be paid on the 26th day rather than at the end of the month.
When Will the Withholding Tax and Premium Service Declaration Be Implemented?
Although this declaration starts as a pilot in Kırşehir on June 1, 2017, it will become mandatory across all provinces beginning January 1, 2018.
How Should Employers Who File Quarterly Withholding Returns Report?
According to the communiqué published on February 18, 2017, employees insured under the SSK who used to file withholding returns quarterly are now required to submit monthly notifications. However, employers who do not employ SSK-insured workers and who file withholding returns quarterly will continue to submit them on a quarterly basis.