Contribution obligations for the self-employed 2023

As we announced last October, as of January 1, 2023, new obligations will be incorporated for the self-employed in terms of contributions:

  1. Self-employment and contributions as of January 2023

From 01.01.2023 the self-employed workers will not be able to choose the contribution base they want, but this will be linked to the expected and definitive net income. With the exception of those who already have a higher contribution base, who can keep it if they wish.

  1. How and when is the new self-employed quota for 2023 calculated?

At the beginning of each year or at the moment of a new registration in the self-employed regime, the communication of the net income forecast for the calendar year must be made. With this information the social security will be able to determine the contribution base in this special regime, and will take into account the total net income, during each calendar year, for the different professional or economic activities.

The self-employed may change their contribution base during the following dates:

  • March 1st, if the application is made from January 1st to February 28th.
  • May 1st if the application is made between March 1st and April 30th.
  • July 1st, if the application is made from May 1st to June 30th.
  • September 1st if the application is made between July 1st and August 31st.
  • November 1st if the application is made between September 1st and October 31st.
  • January 1st, if the application is made between November 1st and December 31st.

The periodic regularization of the updating of the bases will be at the request of the individual self-employed, i.e., you decide how many times we adjust the quota. Please note that once the calendar year has ended and the income declaration has been made, the Tax Agency will communicate the declared income to the Social Security and the General Treasury of the Social Security will issue a resolution in this regard:

  • If the net income is higher than expected: The self-employed will have one month to liquidate the difference.
  • If you find a net income lower than expected: The Social Security will automatically refund the excess of the amount paid.

Depending on the forecast of annual net income, the self-employed will be placed in one of the established brackets in the table (general or reduced) through 2023 (in euros):

 

The calculation is as follows:

NET INCOME (N.I.) = Income – Tax deductible expenses
Tax deductible expenses
(excluding the expense for the self-employed fees).

To the previous result, subtract one:

  • 7% if you are self-employed
  • 3% if you are self-employed.

 

As a guideline, from the obtained figure, you can look for the amount in the table, in order to know the new quota or you can use the simulator quota autonomy 2023 Social Security: https://portal.seg-social.gob.es/wps/portal/importass/importass/tramites/simuladorRETAPublico

 

  1. Exemple

EXAMPLE CORPORATE SELF-EMPLOYED

EXAMPLE SELF-EMPLOYED DIRECT ESTIMATION

A self-employed company with an expected gross monthly salary of €2,000 and the 3% that can be deducted is subtracted. This self-employed person would have a net monthly income of 1.940€ .

It would be located on tram 8 and would pay a fee of 315 € / month.

A self-employed person with a net income of 24.000€ per year, we subtract 7% that can be deducted. This self-employed person will have a net annual income of 22,320€, which corresponds to a monthly NR of 1,860€. It would be located on tram 8 and would pay a fee of 315 € / month.

 

Contribution higher than that which would correspond for income

Self-employed workers who on December 31, 2022 pay contributions for a higher contribution base than the one that would correspond to them due to their income, can maintain this contribution base, or a lower one, even if their income determines the application of a lower contribution base.

 

  1. How will we work?

Get a Partner will make a forecast of the net yields that you have twice a year (at least twice a year, in January and October), however, more reviews of quotes can be made if you wish.

We will study together your particular case, simulate the new quota and provide you with a report so that you can decide if you want to keep the current quota, if it is lower.

Finally, the new calculated base will be applied in these two periods.

 

For more information, do not hesitate to contact us.

NOU IMPOST Mechanism for Intergenerational Equity (MEI)

With Law 21/2021, of December 28, 2021, and Law 31/2022, of December 23, of the General Budget of the State for 2023, a series of measures are established to guarantee the purchasing power of pensions in the long term.

One of the most important measures is a new tax that comes into force from 1 January 2023, the Intergenerational Equity Mechanism (MEI).

What is MEI?

The Intergenerational Equity Mechanism (IEM) is a set of measures designed to prevent the younger generations from assuming the full burden of retirement and at the same time to strengthen the pension system in the long term, distributing this effort in a balanced way.

What does MEI involve?

The MEI represents an increase in contributions of 0.6% for common contingencies, sharing the cost between the company and the employee. The 0.5% will be paid by the company and 0.1% will be paid by the employee.

For example, a worker with a monthly contribution base of €2,000 (gross salary), this 0.60% increase would mean a monthly contribution of 12 euros. Of this increase, 10 euros will be paid by the company (0.5%) and 2 euros by the employee (0.1%).

In principle, this new tax is established for a period of 10 years, until 2033.

Who is obligated?

It affects all workers, regardless of their salary, and also the self-employed.

In the case of the self-employed, the contribution rate for common contingencies will increase by the same percentage, 0.6%. Això es tradueix en uns 5 euros més al més.

They are excluded from this tax:

  • Workers with solidarity contributions (over 65 years of age with 35 years of contributions)
  • Workers who develop training programs and non-work and academic internships (TRL 986) (training programs / non-work internships).

How does this new contribution affect the payroll?

As of 01/2023, the calculation of payrolls will include the equity mechanism contribution added to the contribution percentage in item 995- Contribution Cont. Comuns.

Until now, a worker of the general regime contributed 4.70% for common contingencies, from 1 January 2023, the same concept will appear in the payroll with a percentage of 4.80% (4.70 contribution for common contingencies + 0.1 contribution for equal mechanism).

 

Friends and professionals

The most absurd thing I have ever felt is “I don’t want to work with this friend of mine, it could jeopardize our friendship and I have a conflict of interests”.

If this happens it indicates three things. The first is that you have unprofessional friends, that is to say, that you do not trust their professionalism. The second is that you have unreasonable friends, that is, you do not trust their personal ethics. And the third one, which for me is a conclusion of the two previous ones, is that in general you say friend to any acquaintance with whom you like to entertain yourself, and not with whom you have a deep and relevant relationship.

Precisely working with a friend is a precious treasure. In general you have few friends and most likely you will not have the opportunity to work together. Friendship is cultivated with time and deep knowledge of the other person. Therefore, if you end up having the opportunity to meet friends and work there, it is a great opportunity and experience for the relationship and for you.

When you work with a friend, you have the opportunity to get to know that person better, and you have the opportunity to improve and learn. It is not necessarily a simple path. In fact, the process of knowing who we are and evolving is not always easy. We have to accept things we have done that we have not liked or that have not taken us where we wanted. Therefore, working with a friend, with someone we trust, who we consider a good person and, therefore, a good professional, is the best option to start this process of self-knowledge and mutual learning. Ja et dic that in general you will not have the opportunity. Maybe it happens to you in the end, that you end up making good friends at work. But if you have the good fortune to work with someone you already consider a close friend, to deny you this opportunity is not very intelligent.

I know that someone will explain to me that they have worked with friends and have ended up leaving. He will tell me that he does not want to jeopardize his friendships by working there, that experience shows that it ends badly. What it indicates to me is that I didn’t know the person we call a friend very well, and the opportunity to work there has made me know him better. You have been able to see and verify if he was a good friend or not. Si era una persona digna de pertànyer al teu pinyol. Maybe the only thing that happens is that you have discovered that you have not. And you have to accept and go through this pain because of the loss that you can’t avoid.

The person is a whole. There is no division between person and professional. When we create this division we tend to start a process of personal disintegration and we suffer the consequences. This fact of separating the professional fact and the personal fact makes us accept real bad professional pairs as friends, saying that with their intimate environment they are a piece of cake. You wait for a conflict of interests to occur and you will see how your friend “tros de pa” will end up being an unbeatable being, but you haven’t given him the chance to show himself yet. You are afraid of its true nature yourself, because it is not easy to accept having had someone like that in your life.

If someone is ungenerous at work, he will end up being ungenerous at home and with his family. You may be able to accept having an ungenerous friend, but don’t be fooled into saying that he only does it in the professional sphere. And you can also accept to have unreasonable friends if you so decide, but don’t fool yourself by saying that they have been unreasonable because of the pressure at work. And in fact, if you consider them friends, don’t refuse to work with them. If you trust people like this, accept it. Maybe in the process of working together all two of us will be better. Maybe they end up feeling more reasonable, more generous, or you end up discovering that they are better people than you thought.

And one of the few cases where I understand that it can be difficult for a friend to work with you, is the case of a doctor. You can refer to them very professionally, but they want you to be cured and it may be difficult for them to accept what is happening to you. However, I also say that if he is a good friend and loves you, he himself will suggest a second medical opinion. You will be aware of your own journeys. Therefore, you will go there professionally and follow their advice, and the second medical opinion can be one of them. You are lucky to have a good friend and a good professional to turn to for such an important issue as your health. A professional who will think in every moment what is the best for you. Therefore, once I think, even in this case the best thing for you is to work with a friend.

Així doncs, ras i curt. If you can’t work with your friends, change friends.

 

Natàlia Cugueró – elmon.cat

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