Social contributions audit

What it means

A social contributions audit is an inspection in which the Social Insurance Agency or a health insurer checks whether an employer or self-employed person is meeting their contribution duties. It checks that employees are correctly registered, that assessment bases match wages and that contributions were paid on time and in the right amount.

The inspector compares payroll records, payslips, employment contracts and agreements with what the company reported in its monthly statements. Periods without income, obstacles to work, benefits in kind and contribution exemptions on agreements are also examined.

Audits can be scheduled or triggered, for example by an employee’s complaint or a suspicion of illegal work. They often coincide with a labour inspectorate check focusing on employment contracts, working time and disguised employment.

How it works in practice

When preparing for an audit, we help assemble the documents requested and go through the critical points: agreements with a contribution exemption, part-time staff, directors with remuneration, benefits and benefits in kind. Errors found in advance can be corrected with amended statements before the audit.

After the audit the insurer issues a report and, if there is a shortfall, a payment assessment with a penalty. Objections can be raised against the findings and an appeal against the decision. In disputed matters, such as an agreement being treated as employment, it pays to argue with evidence.

With health insurers the issues are often the annual reconciliation and a wrongly identified payer, for example where employment and a trade licence overlap. When an employee switches insurer, care is needed that contributions go to the right one.

What to watch out for

The most frequent findings are agreements that are really employment, workers not registered for short periods and contribution exemptions claimed on several agreements at once. The shortfall is calculated back over the whole period, and the penalty grows every day.

Another risk is a mismatch between the payroll software and what was actually submitted. If a statement was rejected or a correction never filed, the insurer is missing data even though the payroll is right. Regularly reconciling with the account balance at the insurer prevents such gaps.