There are three types of employer non-compliance:

Failure to comply with the legal obligations of registration in the contributory regime (registration of the employer and its employees)
Non-compliance with contributory obligations (completion and submission of the remuneration statement and payment of contributions).
Failure to fulfil other legal obligations regarding the provision of other information.

In the event of any non-compliance, the employer is subject to administrative offences which may involve the payment of fines or other penalties.

The offences that employers incur are analysed on a case-by-case basis and depend on the following factors:

duration of the period of non-compliance
damage caused to third parties
fault (negligence or wilful misconduct)
reoffending

The amounts of administrative offences may vary according to the table below:

False statements always aggravate the fines imposed, as they are always considered serious or very serious administrative offences.

The maximum and minimum limits of the fines are halved for employers with fewer than 10 employees.

There is a Social Security Debt when the employer has an outstanding amount to pay to Social Security relating to:

social contributions not paid within the legal deadline
fines and interest on late payments imposed

Social security debt can be paid by:

Regular collection: by direct payment (in one-off payment, or by instalments) or by offsetting against other amounts to which the debtor is entitled (offsetting done directly by the Social Security services).
Enforced collection: non-payment in the regular terms leads to enforced collection by the Social Security, which implies the application of interest on arrears at the rate of 1% and the application of fines.

Employers who have a social security debt cannot:

Entering into or renewing contracts with the State, including procurement contracts, public works contracts or service contracts - therefore, in order to apply for any public tender, it is mandatory to submit a statement proving the social security contribution situation.
Exploring the concession of public services
Launch public offers for the sale of its capital and, in public subscription, participation securities, bonds or shares
Benefit from support or subsidies from public authorities (with the exception of subsidies granted in the event of disasters).

Any public entity may only make payments or grant subsidies to Employers of an amount greater than USD 5,000, upon presentation of a Statement proving the contributory situation with Social Security.

Whenever there is a debt to the Social Security, even during the period in which the contract is in force, the public entity retains up to 25% of the amount of the subsidy/payment that it should make to the debtor employer, and delivers this amount to the Social Security, reducing the amount of the debt.

Exceptions to this rule are subsidies granted by the State specifically to create or maintain jobs, as well as support in the event of natural disasters.

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