HR Remuneration and Payment Obligations - Unit 4

• Unit 4 concerns drafting documents derived from human resource remuneration and payment obligations
• Topics include: Compensation in HR management, salary concepts, payroll structure, associated documents, advances, social expenses, and information archiving.

Importance of Remuneration

• Remuneration is fundamental in HR and a basic employee right.
• A good system ensures labor compliance and boosts motivation and productivity.
• Salary concepts, payroll calculations, and compliance with official bodies are involved in remuneration management.

Integration of Prior Knowledge

• Previous units covered the employment relationship, administrative obligations to Social Security, hiring modalities, legal aspects, and employer obligations.
• Topics include: creating compensation documents, understanding salary, payroll, and IRPF withholdings.
• Collective agreements decide additional salary payments, conflict resolution and mandatory benefits.

Professional Category

• Professional category defines job position based on tasks and responsibilities, regulated by Workers' Statute (Article 22) and collective agreements.
• Post-2012 labor reform uses "professional groups"; currently there are eleven.
• Knowing each worker's professional group determines minimum and maximum contribution bases, salary, and benefits.
• Professional category is in the contract and on the payroll.

Importance of Knowing your Professional Group

• Each category has set base salaries and supplements.
• Knowing a professional category ensures correct earnings.
• Associated job functions and rights relate to professional category.
• Changing category affects salary and responsibility.

Determining Professional Group

• Factors influencing the professional groups are tasks assigned, required education, and prior experience.
• Group 1: executive-level (Director).
• Group 2: senior engineers and doctors etc.
• Group 3: technician-level and laboratory staff.
• Group 4: administration, supervision, and controllers.
• Group 5: admin assistants and receptionists.
• Group 6: sales and commercial roles.
• Group 7: service personnel.
• Group 8: electricians and operators.
• Group 9: assembly line staff.
• Group 10: agriculture and farming experts.
• Group 11: unskilled workers.

Impact of Professional Category on Payroll

• Base salary is the minimum guaranteed amount for each category.
• Additional pay depends on the category.
• Contribution bases link with salary.

Information on Professional Category

• Collective agreements and worker agreements are important.
• Labor statutes define the framework of group categories.
• Government agencies offer advice on professional categories.

Hacienda (Tax Authority) and IRPF (Income Tax)

• Hacienda manages income tax deductions and settlements.
• Hacienda, via the Tax Agency, regulates fiscal duties within the employment context.
• IRPF deductions advance tax payments.

IRPF and Compensation

• IRPF taxes on income received by workers.
• IRPF deductions are amounts from gross salary paid to Hacienda.
• Employer manages deductions and reports them monthly or quarterly to Tax agency.

Impact on Salary and Company

• IRPF impacts net salary.
• The amount depends on taxable income, family situation, and tables published annually.
• Companies must manage administrative tasks regarding compliance.

Salary Concept

• Workers receive economic compensation for their services.
• This includes monetary and non-monetary compensation.
• Company agreements set the minimum salaries and additional benefits.
• Salaries must comply with legal regulations such as respecting the minimum wage (SMI).
• Calculate monthly wage by converting the 14-payment annual salary to 12 payments.

Types of Salary

• Salaries vary based on calculation and payment methods.
• Fixed Salary: The salary is set regardless of productivity.
• Variable Salary: The salary depends on the number of sales, productivity, or business profits.
• Payment in kind: The payment is with goods or services, not money.
• No more than 30% of the salary should be paid this way.

Additional Salary

• Collective agreements can specify bonuses such as seniority, availability, special-hours payments, and voluntary improvements.

Compensation Guarantee

• Workers' salaries have legal protection that ensures payment.
• Minimum wage is guarded from seizures.
• Any garnishments apply in a tiered manner.
• Salaries must be paid timely.
• The Wage Guarantee Fund (FOGASA) ensures that payments are made even if the company dissolves.

Payroll Structure

• Payroll provides complete income and deduction information.
• It is also mandatory and must comply with the Worker's Statute.
• Payroll includes header, accruals, deductions, and net pay.

Header Element

• Includes company name, tax and social security codes and worker employee information.

Accruals Element

• Gross salary includes base salary, additional payments, overtime, and pay in kind capped at 30% of the total pay.

Deductions Element

• Deductions include social security, income tax, and advances.
• Net pay is what employees will receive.

Additional Pay Supplements

• Additional wages compensate specific job conditions or performance, such as personal, job-related, performance, or output-based bonuses.
• Collective agreements regulate pay supplements.

Contribution to pay supplements

• Social Security contributions are included in base assessment, except for some items.
• All pay supplements are subject to IRPF.
• Travel expenses are not taxed regarding their limitations.

Exemptions

• Expenses like the 26.67€/day food allowance if there is no overnight stay.

Compensation

• Compensation in kind limited to 500€ per beneficiary, and food stamps limited by 11€ per day.

Contribution Rates

• The taxable base is the amount used to calculate social security, FOGASA, and training payments.

Types of Base Contribution

• Common Contingencies: Includes salary base, and additional payments, excluding those that are exempt.
• Used to fund provisions regarding maternity leave or work leave.
• Professional Contingencies: Used to fund work-related benefits.
• Work Leave: Funds work leave benefits.
• FOGASA: Similar to the base with professional incidents regarding work leave benefits as well.
• MEI: To ensure social funding.
• Contribution bases depend on the category of employment.

Withholding- Norms and Functions

• IRPF is levied on income taxes in the labor context, deducting percentages of the salaries.

Key IRPF Norms

• Law: 35/2006 regulates that taxes are calculated accordingly.

Calculation of Deduction

• The IRPF deduction is calculated using the workers marital status, dependents, and other conditions.
• Find the annual gross salary. Then apply the rate.

Factors that influence taxes are

• Family Conditions: taxes depend on how many children and families need it.

Documents Associated with Compensation

• Employers must prepare multiple documents that show the different payments.
• Aside from payroll employers are required to offer receipts.

Receipts for settlement include

• Additional payments.
• Specific payments.
• Separation pay.

Termination Pay includes

• Payment that is given along with severance.
• Days worked salaries along with unused holidays.
• Prorated payments.

Declaration and Payment regarding IRPF

• Companies act as holding agents when taking a percentage from employee salaries and giving to Hacienda to anticipate income taxes.

Official Forms regarding Taxes

• Form 111: Report that documents quarterly holds or sales.
• Form 190: Form reports annual sales and holds.

Document Locations include

• Forms need to be in the first 20 days of April, July, October, and January
• Form 111: Needs to be submitted before the 31rst.

Contribution Documents to Social Security includes

• Employers have to contribute employee contributions regarding social security.

The RLC (Receipt of Settlement) & RNT(Nominal Relation) Models

• RLC is the TGSS and states that the fees regarding the employees’ taxes have been fulfilled.
• This displays employer payments or a full payment of what is due.
• RNT displays dates need to determine contribution including workers salary and the days they have worked regarding the contributions.

Management Guidelines

• Employers have to show a file regarding the contributions and send thru the SILTRA
• The deadline is the last day of the last year.

Advanced Payments and Social Guidelines

• Advanced Payments are wages paid before the payment is due

Major Characteristics regarding Advancements include

• Payment with No interest (no fees occur)
• Decreases payment by the amount on payment day Rules that the employer can make regarding payment advancements
• Under the deduction section it shows “Advancement”

Other Social Concepts

• In addition, there are social concepts about relevant payments.

Items of Interest

• Company Payments that are advanced to the employee
• These are paid back in small installments.

Standards

• Regulation regarding Collective rules
• Interest that is lower than the Market conditions
• Included with payments “Company Payment” stated as deductions.

Help

• Social benefits act as supplements in certain work conditions.

Transport is

• Compensation regarding movement of the employee.

Care is

• Benefits regarding the amount per employee and family.

Education is

• Payments that allow for the development in skills that can be applied.

Under the Payments, is Not

• Tax free if not exceeding the legal limits.
• Severance with the worker and his work conditions
• Compensation per severance, regarding agreement between worker and company.

Norm is

• Exemption with certain regulation regarding fees.
• Archiving.

Organization regarding documents

• Document control regarding payments, liquidations that must be provided
• Effective document control to protect integrity, access, and data integrity.

Types of document systems

• Physical Systems: Systems organized with the use of folders, data order, and documents regarding that data.
• The good is is how easy to maintain the data.
• The bad requires a lot of physical space and can be easily damaged.

Digital Systems: Using Cloud base systems

• The good is the access and use of data.
• The bad is the technical know-how.

Plans

• Separating the document storage
• Filing under the specific document.

Norm Compliance

• Retaining the document for 5 years as stated by the legal code
• Protect the GDPR.

Security Copies

• Protect copies both physical and digital to keep them safe.