Overview

Spain has one of the more complicated reporting requirements, which not every employer understands. There are also regional differences for certain deductions and a wider range of statutory leave than in other European countries so payroll can be quite complex to administer.

Who is this course for?

This course is aimed at those Payroll & HR Professionals who are processing or managing Vendors who process Payrolls in Spain and need to have an understanding of the legislative and legal requirements involved.

What will you achieve?

Having attended this course delegates will have confidence that they understand the fundamentals of payroll processing in Spain, are clear about employer obligations, know what they need to do on both a periodic and annual basis, can answer employee queries and check payslips. Even if payrolls are outsourced it is still the employer’s responsibility to ensure all obligations are met and that tax and social security are correctly processed. This course not only gives you the information you need to be compliant but also ensures you know exactly what information should be given to a payroll provider and the various tasks they should be completing on your behalf.

What will be covered?

MODULE 1: Legal Framework
1. Labour legislation
2. Collective bargaining Agreement
3. Social Security Law

MODULE 2: Employer and employee obligations
1. Employer obligations

• Company requirements (tax identification number, CCC, workplace notification, etc.)
• Use of Electronic/digital certificate
• Compliance with occupational health and safety legislation (PRL)

2. Labour obligations

• For companies with fewer than 50 employees
• For companies with 50 or more employees

3. Employee obligations

MODULE 3: Working time in Spain and employment contracts
1. Working time

• Actual working time in Spain
• Overtime regulations and flexibility
• Mandatory rest time

2. Types of contracts and their characteristics

• Types of contracts and mandatory requirements
• The particularities of part-time contracts and the agreement for additional hours
•  The complexity of permanent seasonal contracts
• The internship contracts
• The executive employment agreement
• The subsidised contracts
• The contract coding system

3. False self-employment
4. Remote working agreements and compensation
5. Specific remunerated clauses

• Exclusivity clause
• Non-competition clause

6. Hiring process

• Legal requirements to hiring employees
• Registration with the social security system and notification at the State Employment office.

MODULE 4: Payroll calculation and payments
1. Payroll

• The payroll process
• Presentation of payslips components
• Distribution of mandatory and contractual salary items
• The employee and employer contributions (general system)
• The payroll summary
• The payroll payment

2. Benefits and expenses

• The benefits in kind
• The flexible remuneration
• The Travel expenses

3. Company car

• Use for work or personal purposes
• Tax treatment

4. Personal income tax

• Explanation of form 145
• Calculation and rates
• The tax regime for expatriates’ employees in Spain
• The Beckham Law and the 7P regime

5. Examples of payroll calculation

• Full-time/part-time
• With overtime and additional hours
• With entry and/or exit during the month
• The impact of variable elements on contributions

MODULE 5: Compliance with social security contribution and tax return obligations (general regime)
1. Social security contributions

• Contribution settlement receipt (RLC)
• Nominal list of workers (RNT)

2. Tax return obligations

• Personal income tax (Form 111)
• Non-resident income tax (Form 216)

3. Submission and payments deadlines

MODULE 6: Paid and unpaid leaves management and how it affects payroll
1. Holidays and public holidays
2. Paid leaves
3. Unpaid leaves
4. Temporary disability and sick pay calculation
5. Work accident
6. Birth and childcare leave
7. Reduction of working hours for childcare, family care and gender-based violence

MODULE 7: Disciplinary measures and employment contract termination
1. Disciplinary measures and deadlines
2. Types of dismissal and procedure

• Objective
• Disciplinary
• Collective
• Dismissal Compensation

3. Final payroll

• Types of employment contract termination
• Presentation of final settlement
• The Calculation of unused holiday entitlement
• The Calculation of extraordinary payments
• Deregistration with social security

Summary

Some employers struggle to understand the complicated reporting requirements in Spain. This course offers a comprehensive look at the regional differences in deductions and the wide range of statutory leave, delivering the fundamentals of payroll processing in Spain so your company can be compliant and ensure that providers are working efficiently too.