Paef: who can access and what are the requirements?

Paef will grant a 50% contribution on the payroll of women workers in the companies that apply.

The application deadlines and the application form are still pending.

Through Law 2060 of October 22, 2020, the National Government extended the validity of the Formal Employment Support Program -Paef- until March 2021.

Who does it apply to?

– Paef grants a subsidy to the payroll corresponding to the number of employees multiplied by up to 40% of the value of the current legal monthly minimum wage ($351,000).

– A state contribution of up to 50% ($438,000) willbegranted for the economic activities of lodging and food services in the tourism, hotel and gastronomy sectors, and artistic, entertainment and recreational activities, as long as the established requirements are met.

– A differential contribution of 50% willbegranted to companies with one or more women on their staff.

How to access?

Law 2060 of 2020 states that:

– The definition of the deadlines for postulation and dispersionisexpected.

– The Ministry of Financeisexpected to issue a new resolution.

–Waiting fora postulation form, mechanism for the transfer of information from financial entities.

–Onthe part of the UGPP, it is expected that by mid-November all the above will be in order.

For the time being, Acero’s recommendation is that employers do not stop paying social security for their employees.

Who is eligible?

Acero lists: legal entities, non-profit entities -Esal-, consortiums or temporary unions, autonomous patrimonies and natural persons employers.

The general conditions for these are:

–Thattheir income has been reduced by at least 20%.

– Tohavea deposit product in a financial entity supervised by the Superfinanciera.

–Thatthe subsidy has not been received on more than 11 occasions, nor have they been obliged to reimburse the state contribution Paef.

As for the specific requirements, depending on who is seeking access to the benefit, we have:

Legal entities

–They musthave been incorporated before January 1, 2020.

–They must beregistered in the commercial registry, and they must have carried out or renewed their registration at least in 2019 and at the latest before applying to the financial entity.

–Thatthey do not have a participation of the nation and/or its decentralized entities of more than 50% of its capital.

– Reported workers of consortiums or temporary unions maynotapply.

Natural persons

–To beregistered in the commercial registry before January 1, 2020.

–Havethree (3) or more workers.

–Notbe a politically exposed person, nor a spouse, permanent partner or relative in second degree of consanguinity, first degree of affinity or sole civil partner of a PEP.

– Reported workers of consortiums or temporary unions maynotapply.

Consortiums and temporary unions

–Must beregistered in the RUT.

–Nothaving a participation of the Nation and/or its decentralized entities of more than 50% of its capital.

– Workers reported through legal or natural persons that make up the consortium or temporary union maynotapply.

Autonomous Patrimonies

–Havea unique tax number -NIT-.

– Tobedeclarants of income tax and complementary taxes.

–Nothaving a participation of the Nation and/or decentralized entities greater than 50% of its capital.

Non-profit entities -Esal-.

–Beregistered in the RUT.

–Nothaving a participation of the Nation and/or its decentralized entities greater than 50% of its capital.

–Obliged todeclare income, declare income and assets and report exogenous information for the taxable year 2019.

– The national society of the Red Cross and its federated systemareincluded.

Educational establishments

– Natural or legalpersonsthat do not have the characteristic of official educational establishments.

–They musthave an operating license issued by the Ministry of Education under the terms established for the education sector.

As a novelty, this law presents some applicants under special conditions.

Employer substitution

–Thecontribution to the new employer will be recognized for the employees resulting from an employer substitution, taking into account the workers for whom both the substituted employer and the substitute employer contributed.

– The qualifying requirements of the new employer or substitute employerwill bereviewed and the income may be compared between the new employer and the former employer.

Associated Worker Cooperatives and Temporary Service Companies

–They mayapply for their employees with labor contracts.

Recommendations when applying

“great attention should be paid when filling out the application form, since many errors have been made”.

It is stated that great attention should be paid when filling out the application form, since many errors have been presented, and in this way access to benefits cannot be guaranteed.

On the other hand, it is important to take into account that financial entities will not be able to refuse to receive documents when the applicant does not have a payroll agreement with that entity.

“The entity will verify that the deposit product belongs to the applicant, is active and unrestricted. Also, that the documents submitted are complete”.

It is worth remembering that the decrease in income must be certified.

“The decrease of income, according to the method established by the Ministry of Finance, signed by the legal representative, natural person employer or legal representative of the fiduciary and accountant or tax auditor, if they are obliged”.

It is recommended that, if an employer is going to apply soon, it must guarantee that the employees have been paid their salaries.

Finally, while Esal and consortiums and temporary unions must provide a copy of the RUT, autonomous patrimonies must provide the NIT.

Source: Actualícese