There is no simple solution when it comes to operating payroll in Spain. In dealing with most bureaucracy, you need expertise to unravel the red tape. The smart move is to find the right people to be your experts while you concentrate on driving your business forward.
Running payroll in Spain requires an understanding of employment and tax laws and how it affects personal and corporate taxation, social security contributions, pension deductions and so forth. In fact, most aspects of ‘working’ shapes payroll and what we all want to know is ‘the bottom line’ – what’s in your pay-packet, business costs and getting it wrong can lead to fines and an unhappy workforce. Here are some of the outsourced payroll services that need to be dealt with:
- Applying for a trading name.
- Applying for a foreigner’s tax registration number.
- Registering with the national trade registry (Registro Mercantil Central, RMC).
- Deciding on a type of company.
- Recording the daily working hours of all employees, following implementation of a law in May 2019.
- Registering employees’ contracts with the social security authorities before employment starts.
- Registering employees’ contracts with the Public Employment Service.
- Complying with national minimum wage as laid down by the Ministry of Employment and Social Security.
- Withholding national and regional tax from employees’ salaries.
- Making monthly contributions to Spain’s National Social Security Institute.
- Opening a company bank account after producing the correct documentation.
- Creating employment contracts.
- Applying special expatriation status (if applicable).
- Calculating monthly salary and creating pay slips and completing tax returns.
- Researching available tax-free allowances.
Don’t panic… leave it to us. It’s what we do!
Bradford Jacobs, with our Professional Employer Organization (PEO) and Employer of Record (EOR) solutions, is always here to explain how we get you through from A to Z and the benefits this can bring to your business. Think of us as an extension of your business – your new ‘right arm’ with the knowledge that is needed to navigate paying staff in Spain.