Required Company Information During Payroll Implementation in Spain

Here are the company details we will be asking you during the “2. Customer Information Collection” stage.

• Company Information
• Legal Representative Information
• Company Registration 
• CBA
• Company Bank Details
• Required Company Documents
• Required Employee Documents

1) Company Information

• Company name (DBA - Doing business as)

• Business address line

• VAT number

  💻  Visit the official website here to read more about VAT numbers.

• Current Payroll Provider

• Current Payroll Application/Software

• Name of a Collective Bargaining Agreement (CBA), "Convenio Colectivo de Trabajo"

  • CBA is a legally binding agreement negotiated between employers or employer associations and labor unions or employee representatives. It establishes the terms and conditions of employment for a specific group of workers or a particular industry sector.

  💻 Visit the official website here to read more about CBA.
  See also: Payroll: What is CBA (Collective Barraging agreements) in Spain?

2) Legal Representative Information

• The name of the legal representative of the company
  • The person who will be responsible for signing payroll tax returns and other legal documents on behalf of the company
• The identification number of the legal representative
• The company email of the legal representative
• The company mobile number of the legal representative
• The date of birth of the legal representative (YYYY-MM-DD)

3) Company Registration 

• Company Tax identification code
  • Código de identificación Fiscal (CIF) is the tax identification code assigned by Spanish IRS that is a letter followed by 8 digits (example: B12345678). The letter represents the type of entity.
• Regime Sector - A type of the business industry
• Type of entrepreneur
• Tax Payment Type
• A name of Accident Mutual coverage
  • "Mutua de Accidentes" or ""Mutua de Accidentes de Trabajo y Enfermedades Profesionales"" (Mutual Insurance Company for Work Accidents and Occupational Diseases)” are private, non-profit organizations in Spain that operate as insurance companies specializing in providing coverage for work-related accidents and occupational diseases.
• Número de centros de trabajo / Number of workcenters
  • How many physical locations or establishments are subject to the terms and conditions outlined in the CBA.
• Contribution Account number (Spanish Social Security)
  • The CCC is a 12-digit alphanumeric code. Each employer in Spain is assigned a unique identification number, known as the "código de cuenta de cotización" (contribution account code). This code is used by the Social Security system to track contributions made by the employer for their employees' Social Security benefits.

4) CBA

• Collective Bargaining Agreement Name
• Número de Convenios / Number of agreements
  • It indicates how many different agreements are currently active and applicable. This number may vary depending on factors such as the diversity of industries, the presence of multiple unions or employee associations, and regional variations in labor regulations.
• Regímenes de Cotización" / Contribution Schemes numbers (Social Security)
  • It refers to the different social security contribution regimes that exist for workers. These regimes determine the rates and rules for the payment of social security contributions based on factors such as the type of employment, industry, and specific circumstances of the worker.
• ¿Tiene tratamiento foral del IRPF? / Does the company have spesific tax treatment? (If you are in Navarra and the Basque Country)
  • In Spain, certain autonomous communities, such as the Basque Country (País Vasco) and Navarre (Comunidad Foral de Navarra), have their own tax regimes known as "foral regimes" (régimen foral). These regions have the authority to regulate and administer their tax systems independently from the central government to a certain extent.
• Empleados en convenio/ Employees under agreement
  • The number of employees who are covered by a Collective Bargaining Agreement (CBA).
• Fuera de convenio/ Employees outside the agreement
  • The number of employees under an employment contract or specific terms of employment that fall outside the scope of an existing collective agreement.
• Number of payroll items per Agreement
  • Various components or items included in an employee's paycheck based on the collective bargaining agreement or labor contract (convenio colectivo) that governs their employment. These components can include basic salary, overtime pay, bonuses, allowances, deductions, social security contributions, taxes, and any other items agreed upon between the employer and the employee representative bodies or labor unions.
• Official code of the Agreement
• Official description of the Agreement
• CBA’s validity
• Publication date in the BOE
  • The State Official Gazette called the “Boletín Oficial del Estado” (BOE) publishes legislation as well as legal notices and other official texts, mainly issued by the State, but also by the regional and local authorities. It is published daily, except on Sundays. 💻 Visit the official website here to read more about BOE.
• Structure (groups and levels or categories)
  • The organizational structure defined within the agreement regarding employee groups, levels, or categories.

5) Company Bank Details

• Bank name
• Account holder name
• Account ownership type
  • Personal or Business
• IBAN
• BIC/SWIFT

6) Required Company Documents

• A copy of CBA

• Imputacion de costes / 12 month history report of detailed gross-to-net(excel)

  • Outline of gross income or earnings into net income, taking into account deductions, taxes, and other withholdings for the current tax year.

• Internal company agreements & policies (leave, maternity, overtime etc)

  • We ask for company policies and regulations, as certain information may impact on payroll procedures (e.g. leave, overtime, bonus schemes).

• Informe de trabajadores en alta en un código de cuenta de cotización report / ITA (Report of Registered Workers)

  • It refers to a report that provides details about workers who are currently employed or in active status within an organization, categorized by the specific contribution account code associated with their employer.
  • If you are an existing Remote EOR customer, Remote is the current provider so no need to request this.
    If you are a new customer, you can request the document with your previous provider.

• Social Securtity certificate

  • Certificado de estar al corriente en las obligaciones de Seguridad Social" is a document issued by a relevant authority. This certificate indicates that the holder has fulfilled their responsibilities regarding contributions, payments, or any other requirements related to Social Security.
  • This can be obtained through the Social Security Administration (Tesorería General de la Seguridad Social, TGSS).

  💻  Visit the official website here to read more about Social Security in Spain.

• Signed National Identity Document of Power of Attorney (PoA)

  • Our team will provide you with the letter for your signature.

• Modelo 111 and Modelo 216 for the current year

  • Modelo 111 ("Autoliquidación de Retenciones e Ingresos a cuenta del IRPF". ) is a tax form used for reporting quarterly withholding taxes on income from work, economic activities, and certain capital gains.
  • Modelo 216 is a tax form used for reporting and paying taxes on rental income earned by non-resident property owners in Spain. It is typically used by individuals or entities that rent out urban properties in Spain but are not residents for tax purposes.

• Detailed benefit statement if applicable

If you have year-to-data

• Employee payslips from the start of the tax year
• Imputacion de costes / 12 month history report of detailed gross-to-net(excel)
  • We will ask for the financial data for the last six months of the previous tax year along with one for the current tax year.
• IRPF form
  • When employees moves to a new company, the new employer does not consider the previous company's income when calculating the tax percentage. This can result in a smaller withholding, which needs to be balanced out by the tax authorities through the yearly declaration. Suggestion: employees can request for a voluntary IRPF percentage, which will be higher than the one that Remote would calculate.
  • Click here to see the template

7) Required Employee Documents

See also: Tips to prepare employees' information for Global Payroll in Spain

• Employees’ work contracts
• Modelo 145 form (family status) for tax purposes
  • Modelo 145 ("Declaración de datos del perceptor de rentas del trabajo” or "Income Tax Withholding Certificate for Employment Income”) typically refers to a tax form used in Spain. It shares information of personal and family circumstances for the withholding of personal income tax.
  • Click here to see the IRPF withholding rate template.
• Employees’ payslips
  • We ask you to share all the employee payslips from the beginning of the current tax year.
• Employee’s ID
  • If the employee is not Spanish, they will have an NIE instead of DNI
• Model (a special type of Modelo) if applicable
  • When an employee has a different Model (a special type of Modelo) We need the Beckham certificate which is the certificate approving the Beckham application. Beckham Law refers to a special reduced tax regime that benefits foreign workers in Spain.
  • Click here to see the Modelo 149 template.
• Voluntarily tax form if applicable
  • Individuals can request a specific withholding tax rate to be applied to their income payment. Employees can select a higher rate but cannot go lower.
  • Click here to see the IRPF withholding rate template.
• Work permit if applicable