After the entry into force of the
new Self-Employed Law
on October 25, 2017, now any
self-employed worker can hire a family member in their company
and enjoy a 100% bonus in common contingencies.
If you are a self-employed worker and you were evaluating the possibility of hiring a relative, take note because below we are going to tell you how you should make the hiring, the bonus you can enjoy, what requirements you must meet, taxes you must face, etc.
How to hire a family member being self-employed?
The new Self-Employed Law allows any self-employed worker to hire a family member up to the second degree of consanguinity indefinitely,also obtaining a 100% bonus in the business quota for common contingencies during the period of one year.
What are the requirements to be met to receive the bonus for hiring a family member?
To be eligible for the bonus for the hiring of a family member by a self-employed worker, it is essential to meet the following requirements:
- The contracting self-employed worker cannot have terminated during the previous twelve months an employment contract through the formula of unfair dismissal or collective dismissal that has not been adjusted to law.
- It will be essential that the self-employed worker maintains during the six months after the registration of the subsidized contract the level of employment. Disciplinary, collective or objective dismissals will not be taken into account. Nor the contracts extinguished by resignation, death, disability or by the failure to exceed the probationary period.
- A self-employed worker may hire children under the age of 30 who live in the family home. It also allows the hiring of children over 30 years of age who have some type of difficulty in accessing the labor market: disability, disadvantaged groups, etc.
What is the new bonus for a self-employed person who hires a family member?
The bonus for the hiring of family members by a self-employed worker is regulated by the Seventh Additional Provision of Law 6/2017 of October 24.
It is a bonus of 100% of the common contingencies during a period of 12 months,for the hiring as an employee and indefinitely of the spouse, ascendants, descendants or any other relative of up to a second degree of consanguinity.
The figure of the self-employed collaborators
In addition, the new Self-Employed Law introduced the figure of the
self-employed collaborator,
which refers to those family members of a self-employed worker, registered as self-employed workers, who act as collaborators.
Here the self-employed collaborator will be able to benefit from an important bonus during the first 24 months.
This bonus will be equivalent to 50% during the first 18 months and 25% during the following 6 months, as long as the new self-employed worker has not been registered in the RETA during the last five years.
How to register as a self-employed collaborator?
The procedures to register as a self-employed collaborator are simpler than those that must be carried out for registration as a general self-employed worker.
You will simply have to register as a collaborating family member in the Social Security, presenting the TA0521/2 model,without having to carry out any procedure with the Treasury.
It will also be necessary to present in a complementary way the family book, the DNI and a proof of the registration of the relative in the Treasury as a self-employed worker and owner of the business or company.
What taxes do self-employed collaborators face?
One of the main advantages of registering as a self-employed collaborator is that you are exempt from the quarterly presentation of VAT and Personal Income Tax,this being a unique obligation of the self-employed owner of the business.
This means that the self-employed collaborators will only have to face the obligations of any other worker, which are the declaration of the Income and the payment of the corresponding taxes according to the income obtained.
What obligations will the self-employed owner have with the collaborator?
The self-employed owner must comply with the same obligations with the self-employed collaborator as with any other worker:
- Payment of Social Security contributions of the self-employed collaborator.
- Payment of the salary and the delivery of the corresponding payrolls.
- Accounting for these items as deductible expenses of your business. Tax obligations do not vary in any case; they are simply contemplated as an additional expense.
conclusion
The
hiring of a family member by a self-employed worker
is a reality since the entry into force of the new Self-Employed Law, enjoying a 100% bonus during the first 12 months.
If you have any questions about it, contact AYCE Laborytax and our labor advisors will provide you with all the information you need.
