Do you want to find out more about payslips in Spain? Below we explain about this type of accounting document so essential to the functioning of your company.
The payslip in Spain is at the same level as a work contract; it is essential for proper social management of your business.
The payslip includes the monthly portion of the annual gross earnings which are except from tax and social security deductions. It is made up of three distinct parts:
The header of the payslip must contain the company’s data as well as the employee’s. Required information on behalf of the company includes name of business, address and social security number. For the employee, simply indicate first and last name, social security number and the following 3 vital pieces of data: - Professional category: this is one of the most important elements to determine to final compensation because it sets the base salary - Position in the company: this indicates where the employee stands within the company. - Seniority in the company: this can influence payroll through bonuses, promotions or compensation in case of dismissal. The payslip then consists of two blocks: that which the employee receives and that which is withheld. The base salary is the minimum remuneration fixed by each collective agreement. Wage supplements can then be added to this base salary. There are several types of supplements of this kind: - Seniority, specialised skills (languages, diplomas etc) and everything that a company may include to improve the remuneration of an employee. - Hazard pay, for night work etc. - Productivity bonus, punctuality bonus, overtime... Retentions are as follows: - Personal Income Tax, Tax on Spanish revenue - Social Security
The payslip is very important for the financial accounts of a company for several reasons. First, the size of a paycheck is vital in a business given that taxes directly affect the net income of most organisations. They are also subject to many laws and regulations. Lastly, in most cases, income is one of the most effective methods used to motivate an employee and it is important that the company pays the exact amount. The main task of a payroll service is to ensure that all employees receive their pay on time. So you need to be sure that your accounting department is familiar with Spanish regulations.