Invoicing

General information

A person who privately hires another person to help in the household or with childcare, hereinafter referred to as a 'private household' employer, receives an account statement each month so they can pay the social security contributions of their staff. Current contribution rates can be consulted here.

The account statement is sent with a time lag of 2 months between the month invoiced and the month in which the account statement is issued.

 

Example: the social security contributions for the month of March are requested on the account statement for May; the social security contributions for April appear on the June account statement, and so on.

 

It is required to pay the balance within 10 days of the account statement being issued, even in the event of a contestation.

Contributions that are not paid by the due date will incur default interest, starting from the 1st day of the 1st month following the due date. The default interest rate is set at 0.6% per full calendar month, with fractions of months disregarded.

Payment/reimbursement of contributions

The account statement shows the previous balance, payments made, monthly charges and any adjustments.

The amount shown as the 'overall balance' in the 'DEBIT' column is the amount to be paid. If the 'overall balance' appears in the 'CREDIT' column, the balance is owed to the 'private household' employer. They may opt for a full or partial reimbursement. Further information can be found in the 'Front of the account statement' section.

The 'private household' employer must pay the balance requested within 10 days of the account statement being issued, even in the event of a contestation. In certain circumstances, they may request to pay their debt in instalments.

The 'private household' employer may choose to pay their social security contributions by direct debit, in order to facilitate payments. Once the direct debit has been activated, at the bottom of the account statement it states that the balance will be collected by the bank via a pre-authorised debit.

Completing transfer/payment orders

The payer must:

• clearly state the contributor's account number on the transfer or payment order; for a 'private household' employer, this is their 13-digit national identification number followed by '70'

 

For example: 19701231XXXXX70

 

• make a separate payment order for each contributor's account

 

Example: if a 'private household' employer has another contributor's account besides their contributor's account as a private household (e.g. as a self-employed person), they must make a transfer/payment for the 19701231XXXXX70 account and another transfer/payment for the other account (e.g. 19701231XXXXX60).

 

 

'Private household' employers may always choose to pay their social security contributions by direct debit, in order to facilitate payments.

Account statement

Front of the account statement

The front of the account statement shows the date of issue, the previous balance, payments, social security contributions and payroll tax at 10%, interest, the new balance, manual transactions and any adjustments.   

Back of the account statement

The reverse side of the account statement gives the details of the social security contributions per risk for the given month ('contributions for the month of') and details of any adjustments for previous periods.

Overview of account statements

The overview of account statements contains the key details from account statements, namely: the date of issue, previous balance, payments, contributions, interest, new balance and manual transactions.

A 'private household' employer may order an overview of their account statements which will be sent to them at the address registered with the CCSS within 3 working days ('Change of address').