What formal requirements should a payroll form have? Is there any mandatory way to submit it?
We explain its essential content and how it must be delivered to the worker. Example templates to fill out and print.
The employer is obliged to give the worker a payroll when paying the salary
The Workers’ Statute (art.29) indicates the obligation to deliver a payroll to the worker and its requirements:
“The documentation of the salary shall be carried out by means of the delivery to the worker of an individual and supporting receipt of the payment of the salary.
The salary receipt will conform to the form approved by the Ministry of Employment and Social Security. The above, unless by collective agreement or, failing that, by agreement between the company and the workers’ representatives; another form is established that contains with due clarity and separation the different perceptions of the worker, as well as the deductions that are legally applicable.”
There is, therefore, an official form. This may be replaced by another established in the collective agreement or company agreement. As long as it meets the minimum requirements established in the official form.
Furthermore, the General Social Security Law adds that on the payroll, the employer must indicate the total amount of the Social Security contribution; indicating the part of the contribution that corresponds to the employer’s contribution and the part corresponding to the worker.
This is a modification that was introduced in 2015. Previously, it was not mandatory to include information on the contributions made by the company to Social Security in payrolls.
The official payroll form for 2020
The regulation that is currently in force regarding the official payroll form is Order ESS/2098/2014, which approves the individual salary receipt form (payroll).
As we have seen, the fundamental change in the payroll that this rule introduced is that the Social Security contribution made by the employer must appear, which until now was not reflected. In this way, you will see exactly the total cost that hiring a worker entails for a company.
This change will mean greater transparency in payrolls, more information for the worker and also greater possibilities of control, since it will be possible to see what is actually quoted by the company, and if it benefits from any bonus in the contribution.
This way, the worker can check whether the employer meets the requirements of this bonus, since at the end of the payroll form there will be a box on “determination of the social security contribution bases and concepts of joint collection and the base subject to personal income tax withholding and contribution from the company”, where all the details of the contribution payable by the employer will be indicated.
In this way, a more homogeneous payroll form is created compared to other European countries.
How should the payroll form be submitted?
Payrolls are delivered coinciding with the end of each month of the year (calendar months). If a company decides to provide a receipt justifying payment for shorter periods (a fortnight or a week, for example), the document will not be a payroll itself, but rather an advance payment on account of the settlement that will be made at the end of the month.
It is also very common for workers, especially in medium and large companies, to be able to download and print their payroll form through the company intranet, or to have it sent to them by email. These types of notifications are perfectly valid and this has recently been clarified by the Supreme Court.
Is it mandatory to sign the payroll form?
The receipt (payroll) must be signed by the worker when the duplicate is delivered and the amounts are paid. In the most common practice, the amounts are no longer delivered in cash but are paid by bank transfer, so that the employee’s signature is no longer mandatory, but the company will have proof that it has paid the payroll thanks to the document payment that the bank you work with will provide you with.
The fact that a worker signs a receipt, receives the payroll online or downloads it and has the salary deposited in his bank account does not imply acceptance of the payroll, so even if he has signed or collected it, he can claim his matter if you think it is not correct.
The company has the obligation to keep both the receipts and contribution slips of its workers for four years.
If the obligation to deliver the payroll form document is not met (whether on paper or online), or what is delivered does not have the minimum content required by law, the company will commit a minor infraction.
It is a serious infraction for the company not to indicate on the payroll form the amount it actually pays the worker and a very serious infraction is the non-payment or repeated delays in the payment of salaries.
If you need any type of advice with Social Security procedures, you can contact us! It is always good to leave bureaucratic issues in the hands of specialists.