16 February 2018

The latest model payslip: what elements should it contain?

All employees have the right to receive from the employer a payroll template that clearly and simply sets out the different types of concepts linked to their remuneration as a guarantee so that the professional can confirm the correctness of the document or, if this is not the case, make the appropriate claims.

This is stated in the Article 29 of the Workers' Statute, which stipulates the following: “Wage documentation shall be carried out through the delivery to the worker of an individual receipt justifying the payment thereof. The wage receipt shall conform to the model approved by the Ministry of Employment and Social Security, unless by collective agreement or, failing this, by agreement between the company and the workers” representatives, another model is established that contains with due clarity and separation the worker's different payments, as well as the legally applicable deductions".”.

However, this official payroll model has recently been amended by the Order of 27 December 1994 in order to make the document more transparent and to include, together with the amount received by the employee, the employee's cost to the company.

How is the wage bill shaped by these new rules? What elements must be included in the payroll form?

Identification data

The header of the official payroll model is made up of the company and employee identification data. Specifically, at this point, it is essential to highlight the following aspects:

Company:
- Namewhether it be a private individual, a legal entity, or a community of property owners.
- Addressrefers to the place where the place of work where the employee provides his or her services is located.
- C.I.F.: This refers to the company's fiscal identification code – consisting of a letter followed by 8 digits – or the Tax Identification Number (NIF) if the employer is an individual (composed of eight numbers and a letter).
- Social Security Contribution Account Number (C.C.C.): is an eleven-digit numerical code assigned by Social Security to the company as the entity responsible for paying contributions.
Worker:
- Name and surname of employee.
- N.I.F.: The National Identity Document plus a letter.
- Social Security Affiliation Number (N.A.F.)is the number assigned by the General Treasury of Social Security to the worker.
- Pay group and professional category of the employeeThe worker's professional classification must be indicated through one of the eleven existing contribution groups and the corresponding category.

Information on the contractual relationship

Likewise, the payroll model must include Date of commencement of employment, as accreditation of the worker's seniority in the company.

It is also essential to signpost the Payroll settlement period. That is to say, from what date to what day the payment refers to, specifying the calendar days included in that timeframe.

Remuneration content of the payroll model

Following the identifying information of the parties and the contractual relationship (in this article we detail how a contract staff and where to download it), the payroll model must break down the Remuneration data in itself, distinguishing between:

Accruals and Depositsis the gross salary that the worker receives, that is, the sum of the following items that will give the total earned by the employee:
- - Salary payments: amounts paid for the professional's actual work.
    - Basic salary: this refers to the pay before any increases for bonuses or length of service, and before tax deductions.
    - Salary supplements: whether personal, job-based, situation-based, or company performance-based.
    - Overtime
    - Additional hours (for part-time contracts)
    - Extraordinary bonuses
    - Wages in kind
  - Non-wage payments: amounts allocated to compensate or indemnify the worker for expenses or needs you have from work.
    - Compensation or allowances
    - Social Security benefits and allowances
    - Compensation for transfers, suspensions or dismissals
    - Other non-wage benefits
Deductions: It includes all those deductions or amounts deducted from the employee's remuneration that result in net salary.
- - Social Security:
    - Common contingencies
    - Unemployment
    - Vocational training
    - Overtime
  - Income Tax
  - Advances
  - Value of products received in kind
  - Other deductions

Once the total deductible amount is subtracted from the total accrued amount, the net remuneration the worker will receive is obtained. All of this, dated, stamped and signed of employer and employee.

What's new in the payroll model

Up to this point, the new regulation maintains the same parameters with regard to the official payroll model. However, The ministerial order introduces the requirement to also include in the document the amounts related to what the employer pays to Social Security for each employee.

Therefore, specifically, the payroll model must also determine the contribution bases for Social Security and joint collection concepts, as well as the base subject to IRPEF (Personal Income Tax) withholding and company contributions”, specifying the following aspects:

Common contingencies, both the amount of the monthly remuneration and the pro rata of the extraordinary payments.
Contingencies and joint collection concepts: for unemployment, vocational training and Fogasa.
Overtime quotation.
Base subject to income tax withholding.