Who has to pay Social Security contributions?

The employers and the employees included in the General Scheme who work for them.

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Beginning and End of the Obligation to make contributions

The obligation to make contributions begins when work starts and does not end while the employment relationship between the employer and the worker continues. It also continues during temporary disability, risk during pregnancy, risk during breastfeeding, maternity and paternity leave and trial periods for workers.

The obligation to make contributions ends when employment ends, provided that the worker's employment termination letter is filed within the following 6 calendar days.

If the worker's Social Security termination is presented after the 6 day deadline, the obligation to pay contributions continues until such time as the General Treasury of the Social Security receives notice of the end of employment, unless the interested parties can justify that this took place at an earlier date.

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How much should the contributions be?

Payment

The amounts to be paid to Social Security, called payments, are calculated by applying the contribution percentage or rate for each protected contingency to the worker's contribution base.

Contribution basis

The contribution base is calculated by adding the monthly remunerations entitled to by the worker, or actually perceived, which are greater, to the proportional part of extraordinary payments and other perceptions of maturity greater than monthly or that are periodic and paid during the period.

Contribution basis, minimum and maximum

The minimum and maximum contribution basis are established each year (monthly or daily) for the various contingencies and professional categories of workers (contribution groups). For 2010, see  Contribution Bases. The basis for work-related injury and occupational illness are also used to calculate the contribution for Unemployment, Wage Guarantee Fund and Vocational Training.

Contribution Rate

The contribution rate is the percentage applied to the contribution base in order to calculate the Social Security payments. The type of contribution is divided between the employer and the employee, except for those corresponding to work-related injury and occupational disease and Wage Guarantee Fund, which are exclusively to the account of the company. The types of contribution are established annually in the General State Budget Act. For 2010, the contribution rates for the protected contingencies are as follows:

(1) Common Contingency Rate (TD ) workers over the age of 65 with 35 years of contributions: 1.70% (1.42% -company- and 0.28% -worker-).

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Paying Contributions

Person responsible:

The employer is the person responsible for their own contribution payments and their workers, as a result of which they will deduct the appropriate contributions from the salary of their workers when making payment.

Regulatory period:

Payments will be made the month after they are due.

Location:

Filing of the contribution documents for payment may be done at any Financial Entity (Banks, Savings Banks, Credit Co-operatives or Rural Banks) authorised to act as a Collection Office.

Documentation to be submitted:

• Contribution Form (TC -1)
• Payroll list of workers (TC-2)

When the company has only one affiliated worker for the payment period, the corresponding box should be filled in on the contribution form titled "TC-2  SHORT FORM". This can only be filled in if the company meets the necessary requirements (only one worker during the payment month, without any variations in the contract code and WRI /OD ).

Automatic Data Transfer System (RED)

The General Directorate of the Treasury General of the Social Security may authorise the information contained in the TC-2 workers' payroll reports to be provided by electronic, computer or telematic document submission. Communication of data using the abovementioned means shall comply with the obligation to file contribution documents within the regulatory period.

Using the RED  System enables contributions to be paid using the electronic or direct debit methods of payment.

If the company chooses the  electronic method of payment, the payment will be made at any financial entity that collaborates with the Social Security with the receipt provided by the Treasury General of the Social Security over the RED System.

If only the direct debit method of payment is chosen, they will have to specify the account number into which they wish to make the payment, and do not need to attend the bank in person.

Effects of documentation presentation before deadline

The filing of the contribution documents within the regulatory period will have the following effects:

• The person responsible will be able to include in the settlement compensations for economic benefits, paid as delegated payments, for temporary disability during the same period covered by the settlement. If, apart from the presentation, the payment is also made within the regulatory period, the relevant deductions for reductions and/or discounts can be applied.
• The charge for a violation classed as serious in article 22 of RDL 5/2000 of 4 August, which approves the Revised Text on the Law on Infractions and Sanctions in the Social Order, or in the criminal liability that, where appropriate, may arise

Surcharges and late payment penalty:

• Presenting the contribution documents within the regulatory period:
  
  
  • Surcharge of 3% of the debt, if the payments owed are paid in the first month following the date on which the regulatory period ends.
  • Surcharge of 5% of the debt, if the payments owed are paid within the second month following the end of the regulatory period.
  • Surcharge of 10% of the debt, if the payments owed are paid in the third month following the date on which the regulatory period ends.
  • Surcharge of 20% of the debt, if the payments owed are paid in the third month following the date on which the regulation period ends.
    
    
• Without presenting the contribution documents within the deadline:
  
  
  • Surcharge of 20% of the debt, if the payments owed are made before the end of the deadline established in the debt claim or liquidation act.
  • Surcharge of 35% of the debt, if the payments owed are made after this deadline.
    
    
• Late Payment Penalty:

  The late payment penalty is due on the day following the end of the regulation period for making payments, or it will be payable fifteen days after the court order notice or communication of the start of the deduction procedure, if the debt has not been paid.

  Likewise, this penalty will also be payable when the debt amount has not been paid within the deadline set when the decision is made to reject the appeals presented against the debt claims or liquidation acts, if the execution of these decisions were suspended in the contentious-administrative appeal process filed against them.

  The late payment penalty required will be the principal sum due, starting from the end of the regulatory payment period and any other payments arising from the surcharge applicable at the time of payment, from the date on which they are required, according to the above paragraph.

  The late payment penalty rate will be the legal interest on money in force at any time during the period of accrual, plus 25 percent, unless established otherwise under the General State Budget Act. For 2010, it is 5.00%.

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Contribution Bases for 2009

• Contribution Bases for Common Contingencies
• Contribution Bases for Work-related Injury and Occupational Disease
• Part-time Contribution. Common Contingencies
• Part-time Contribution. Work-related Injuries and Occupational Diseases
• Contribution for trainee and training contracts

The minimum bases applicable to part-time contracts during 2009 are as follows:

For 2009, the minimum contribution basis for occupational contingencies applicable to part-time contracts will be 4.39 euros/hour worked.

The Social Security contribution for trainee and training contracts will consist of a single monthly payment distributed as follows:

Notes:

Contributions for scholarship students and researchers will be levied for the first two years and the rules for contribution for training contracts will be applied.

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