Can the self-employed employ a family member?  How it goes?

One of the most common formulas used by this group to handle work peaks or specific needs is to collaborate with other freelancers. More than contracting, we must speak here of a business relationship for the provision of services. The other option that seems less risky besides encouragement is to reach out to a family member. In this case we are talking about hiring so-called self-employed workers, ie a relative of the self-employed owner.

Who can you hire as a collaborating freelancer?

It is said that the figure of the self-employed worker is peculiar in that it has a different tax system than the self-employed. The difference is that the assisting self-employed person is part of the same regime (RETA) for social security, but is an employee for the tax authority.

The law allows the hiring of self-employed workers if the following conditions are met Requirement:

-Direct relatives: Spouses, descendants, ancestors and other relatives of the employer, by consanguinity or kinship up to and including the second degree and, where appropriate, by adoption. This means that children, parents, siblings, grandchildren, grandparents, brothers-in-law and parents-in-law could be employed as self-employed. Great-grandchildren, nephews, uncles, or cousins ​​are not considered direct relatives. There is some controversy regarding de facto couples as it used to be allowed but the current law removed this possibility.

-It cannot be a one-off collaborationbut must be habitual and continuous.

-Both in the same center. Both the self-employed owner and the employee must be employed at the same place of work.

-Living in the same household or look after the self-employed owner.

-Not being registered as an employee. Consequently, the working family member is made unemployed and registered with the employment office.

-Be at least 16 years old.

Who should register and how does it work?

Immediate family members of the main self-employed person must register as an assisting self-employed person prior to hiring. The procedures for doing this are simpler than usual.

Considering that the self-employed person’s registration to cooperate with the Special Scheme for Self-employed Persons (RETA) is mandatory, they must register by submission the Model TA0521/2 (Application for registration in the special regulation for the self-employed – employee family member of the business owner).

What supplementary documentation It is required to present the family book, identity card and a copy of the registration in the Ministry of Finance of the family member registered as self-employed and as the owner of the business.

The corresponding application can be submitted to the state directorate of the general social insurance fund or its administration. This can also be done via a digital certificate or cl@ve/user + password.

bonuses

The option of cooperating self-employed can be very interesting as there are a number of bonuses for both the employee and the employer. The contracted family member is exempt from quarterly tax liability. Therefore, you do not have to file quarterly sales tax or income tax returns or taxes, which become the obligation of the hiring self-employed person. It is sufficient to submit the declaration of income as for any other employee.

This acc management , is due to the fact that “although you are part of the special regime of RETA, at the tax level you are taxed on the same terms as an employee or employee. By receiving your income in the form of salary from the self-employed owner, as a self-employed worker you report your taxes as income from work and not income from economic activity. However, as they are considered self-employed by social security, they are entitled to unemployment benefits under the same conditions as a self-employed person.

On the other hand, Law 6/2017 of October 24 (Urgent Self-Employment Reforms) regarding the employer provides as a novelty a bonus during the 24 months following the effective date of the registration of a self-employed family. By law, employers receive a bonus on the quota resulting from the application of the applicable minimum contribution rate, which is 50% during the first 18 months and 25% thereafter, reaching the 24 months in total. Even when it comes to a Permanent contract The law provides a 100% bonus on the general contingency business fee for one year.

Gestrón also recalls that the salary that the self-employed worker receives as a normal self-employed person must be included in the payroll and must reflect an amount that corresponds to the category and the current contract that regulates his professional activity. The amount allocated to cover these items is to be considered as a deductible expense of the holder’s company for the purposes of the relevant declarations as an additional expense.

The same source assures that there is no set time limit for working as a freelancer as long as the requirements are still met.