One hand gives and the other takes away: the pandemic has allowed tax deferrals, but will not pay sickness benefits

“It seems that one hand gives in and the other takes away,” jokes Robert, a movie worker.

Will pay for four years

Their situation is like that of many others in Lithuania, whose activities were partially or totally suspended by the COVID-19 pandemic and the first and now the second quarantine was announced last spring.

“I declared my activities in 2019 and I have not paid taxes for them until now, because in the spring of 2020 I asked for a postponement. Due to the COVID situation, the state provided a tax deferral as support, both to Sodra and the State Tax Inspectorate. As my activities were also included in the list of victims of COVID-19, the payment of taxes was deferred. “Sodra has told me how I will have to pay those taxes in four years, and I will only start paying them from June of this year,” Robert said of the deal.

As Robert said, that decision has certainly eased his financial burden this year, so he made no secret of being very happy about it.

Benefit: only after paying taxes

However, after the New Year, it became clear that this support has another side. The family decided to exercise the right not to allow the child to attend kindergarten due to the threat of COVID-19, and Robert assumed the incapacity for the care of the children under the new procedure that went into effect.

All the stupidity of the situation is that I have been told that you are insured, you will receive a benefit, but only if you pay everything for 2019.

“It turned out that I could not get the benefit due to my unpaid taxes for 2019. So the situation is that I received support, deferred payments, I don’t even have to start paying them, but where are all my social guarantees? Although I have been in business since 2011, I have always paid my taxes on time, now I am running out of insurance. Debtor and non-debtor.

All the stupidity of the situation is that they have told me that you are insured, you will receive a benefit, but only if you pay everything for 2019. It will be four years later when I finish paying … After four years there will be another government, I still don’t know what can change this government. The situation is quite absurd, “said Robert.

Robert says he found out in September when he went to see a doctor and became incapacitated. However, Sodra did not grant his claim for the same reason: he is in debt. The man had only been unable to work for three days, so he shook his hand.

Now the situation is different, because the family agrees not to take the child to kindergarten until January 31, or perhaps even longer, if the procedure leaves him unable to work for a longer period.

The man has called Sodra several times in an attempt to explain himself, and assures that he has heard that it really is a misunderstanding, but specialists are unable to calculate his disability benefit because he does not have data on taxes paid in 2019.

“These are some solutions for me now, or leave it at that and not receive a benefit right now, only after four years. Or pay all taxes for 2019 and 2020 and get that benefit,” said Robert, without ruling out that he could choose the second option.

There are no exceptions for a pandemic

Sodra explains the situation as follows: if no taxes have been paid in this particular case for 2019 and no months have been paid in 2020, the person is not considered insured and has not acquired the required duration of social security.

Due to the pandemic, no exceptions apply here, but at the moment, according to Sodra representatives, there is other assistance, and it mentions the same possibility of tax deferral and subsidies paid by the Employment Service.

To receive sickness benefit, you must have purchased – 3 months. in the last 12 months or 6 months. for the past 24 months, social security sickness history.

“Starting in February of this year, the procedure for paying social security benefits to the self-employed will change and these residents will be able to receive the benefits more quickly. The self-employed will be considered insured for illness and maternity if they have paid social security contributions and have submitted a SAV notification to Sodra for the calendar month prior to the month in which the right to the benefit is acquired.

In order to receive the benefits, the self-employed population, like the rest of the insured, such as the wage earners, begins to be temporarily unable to work or becomes entitled to the benefit during the period in which they are considered insured. In addition, they must have acquired the required duration of social security. For example, to receive sickness benefit, you must have purchased – 3 months. in the last 12 months or 6 months. for the last 24 months, the duration of the social insurance of the disease “, – says in the comment submitted by Saulius Jarmalis, the Head of the Department of Communication of Sodra.

Seniority in social security for the autonomous population is calculated on the basis of contributions paid, and monthly seniority is obtained by paying contributions of the monthly minimum wage.

“The amount of the sickness benefit itself is calculated on the basis of the person’s income during the 3 consecutive months up to the month before the month of incapacity for work. For example, if the incapacity for work due to childcare begins in January, the amount of the benefit is calculated on the basis of income from September, October and November or a minimum benefit is paid, which cannot be less than € 168 monthly (before taxes).

Time of service will be acquired as soon as the corresponding contribution amount has been paid, regardless of whether the contributions have been deferred.

For example, if a self-employed resident has deferred contributions that he had to pay last year after declaring income received for activities carried out in 2019, and in 2020 and 2021 he has not paid any advance and has not yet declared for 2020. income from individual activity and having paid social security contributions, has not paid social security contributions during the last two years. As a result, you are not considered insured and, furthermore, you have not acquired the required duration of social security. The time of service will be acquired as soon as the corresponding amount of the contributions has been paid, regardless of whether the contributions have been deferred, ”the comment says.

If the contribution debt is deferred, it is considered that the resident has no pending obligations, but acquires the social security registry to the extent that he has actually paid the contributions.

“Therefore, after paying state social security contributions for individual activity income in 2019 or reporting STI individual activity income for 2020 and paying state social security contributions for them, a person who has obtained a certificate of disability in 2021. you will be considered insured for social sickness insurance from January 2007 and, once you have acquired the required duration of sickness insurance, sickness benefit will be granted and, in cases in which decisions have already been made not to grant sickness benefit will be reviewed, ”says Sodra. “.