FINAL PROJECT
Training program: Business Administration
Subject: International Financial Management
Send to: accounting@eneb.com
Last Name/Surname: Almonte Almonte
Name: Jesus
ID/Passport:
Address: 2A West Great House
Region: Kingston
Country: Jamaica
Telephone:18763836712
E-mail:jesusalmonte@yahoo.com
Date:08/16/2022
ENEB Business School
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Essay
According to Euroblind,org, article 27, employers who hire a disabled worker on
the basis of a permanent work contract are entitled to a grant of up to 901 Euros
to adapt the premises, a deduction of 6.000 Euros from Corporate Income Tax,
and a wage subsidy of up to 3.907 Euros per employee. Employers also benefit
from a bonus reduction in social security contribution tax.
The amount of the bonus is determined by the employee's profile, ranging from
4.500 Euros per year for an employee with a disability rated less than 65%, to
5.100 Euros for a disabled employee with a disability equal or superior to 65%
and for a female employee with any disability, and up to 5.700 Euros if the
worker is over 45. These schemes require the employer to keep the employee
for a minimum of three years.
Employers who hire a disabled worker under a temporary work contract are
eligible for a bonus reduction in social security contribution tax. The amount of
the bonus is determined by the employee's profile, ranging from 3.500 Euros
per year for an employee with a disability of less than 65%, to 4.100 Euros for a
disabled employee with a disability equal to or greater than 65%, and up to
4.700 Euros if the worker is a woman or over 45.
Employers who hire a disabled worker on an interim work contract may be
eligible for a 100% bonus on their social security contribution tax for each
disabled employee. If the contract is for 12 months or more, these employers
may also apply for a grant to adapt the premises.
Employers who hire a disabled person on the basis of a traineeship work
contract are entitled to a 50% bonus on their social security contribution tax per
trainee. If the contract is for 12 months or more, these employers may also
apply for a grant to adapt the premises. Additional bonuses may be available if
the traineeship is later converted into a permanent work contract.
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Employers may also hire disabled workers through the Work Enclave system,
which allows workers from a sheltered employment center to temporarily join
the company. In this case, employers are entitled to a bonus of 7.814 per
annum 4 and per permanent contract, as well as a grant to adapt their
premises. Additional bonuses are available if the contract is for a full-time
position.
A specific program supports sheltered employment centers. Employers receive
a 100% bonus on their social security contribution tax for each disabled
employee, as well as up to 1.803 Euros per employee to adapt the premises
and a wage subsidy scheme (up to 50% of the Spanish minimum wage). They
are also exempt from VAT on government subsidies. Centers with 70 to 90%
disabled workers receive a bonus subsidy of 9.015 Euros, and centers with
more than 90% disabled workers receive a bonus subsidy of up to 12.020
Euros."
Laura Moore will receive a significant benefit under Spanish Article 27 if she
hires a disabled worker on an indefinite (permanent) work contract.
In hiring an administrative assistant on the basis of a permanent work contract
with a recognised 37% degree of disability, Laura Moore will benefit from the
following bonuses and reductions:

Up to € 901 to adapt premises for the disabled employee.

a Corporate Income Tax deduction of 6.000 Euros and a wage subsidy of
up to 3.907 Euros per employee.

Tax relief on social security contributions of up to € 4,500.

Additional benefits are available to workers from Sheltered Employment
Centres.
There are some financial advantages to hiring a temporary contract worker, but
the benefits are significantly lower when compared to hiring an indefinite
contract employee. Laura Moore is making a wise decision by offering an
indefinite contract to the administrative assistant.
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There are various different types of contract in spain, including indefinite-term,
temporary, fixed-term, training, and Intership contracts.

Indefinite contract: It sets forth no specific time-limit and can be signed
for full time, part-time or for the provision of intermittent services.

Temporary contract: It sets forth a specific time limit for the duration of
the employment. It can be signed for a full-time or part-time contract.

Training and learning contract: With this contract the employee
obtains a professional practice appropriate to the level of his or her
completed studies.

Internship agreement: This type of contract is to promote the
employability of young professionals while alternating between academic
activities.
Each of these contracts has its own unique characteristics and specific clauses
based on the employee and/or employer's characteristics, as well as its
allowances.
The bonuses of the employment contracts depend on:
The characteristics of the company
A company's characteristics vary depending on its legal form and the number of
employees it hires. It does not matter whether it is a regular company, a microenterprise with fewer than ten employees, a SME with tens of employees, or a
large corporation with hundreds of employees.
The working life of the Company
The company's working life is also important: for example, if the company had
to deal with some regulation, what is the company's employment level, or is the
company creating new positions?
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The situation of the future employee
When signing an employment contract, certain factors must be considered,
such as whether the contracting party is a young professional, has no work
experience, has not been trained for the job, belongs to a specific social group,
or is registered as a job seeker.
Incentives for social security
It is necessary to determine whether an incentive (such as reductions and
bonuses) can be applied to social security contributions.
Contracts with bonuses include those for entrepreneurs, youth guarantee,
family home service, senior management, people at risk of social exclusion,
group work, disabled, special employment centers, temporary care, relief, and
so on.
These factors, as well as contract clauses, may limit the type of contract one
chooses when concluding an employment contract in Spain, because there may
be cases where the conditions are significantly better than in others.
Following what we've learned, we'll draft an employment contract based on the
official model and its corresponding disability-specific clauses.
EMPLOYMENT CONTRACT
This indefinite employment contract is between GRAPHIC DESIGN AGENCY,
which will also be referred to as the “ employer “ and JANE DOE, who will also
be referred to as the “ employee “
The employer and employee agree to the following:
Place of Employment:
The workplace for the employee will be at 123 Main
Street, Barcelona
Date of Employment:
The employment term will commence on January 2,
2020, for an indefinite period of time.
Trial Period:
The probationary period for the employee will be two months. In
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which time the employee’s employment may be terminated without cause and
the employer will not be held responsible or pay any severance pay to the
employee.
Duties:
The employee is expected to perform the following task:
● Answer telephone and pass on messages to appropriate
departments/people
● prepare correspondences from Laura Moore and reply to all incoming
correspondences in a timely manner
● Handle all facets of Administration work of Graphic Design Agency
● Handle payments and disbursements of petty-cash
● Other duties as assigned by the employer
Category:
This position of Administrative Assistant will be classified as
category 7 - Administrative Assistants.
Base Salary:
Base salary will be € 1,500.00 per month with a total of 14
payments made in a calendar year, with the 1st extra payment payable in June
and the 2nd in December. Paid on a monthly basis.
Timings:
Workday will commence at 9 am for a period of eight hours and the
work-week will be from Monday - Friday.
Holidays:
Nine national and Five local holidays will be granted with a
maximum
of 14 holidays allowed in total in a calendar year.
EMPLOYMENT CONTRACT
This indefinite employment contract is between GRAPHIC DESIGN AGENCY,
which will also be referred to as the “ employer “ and JANE DOE, who will also
be referred to as the “ employee “
The employer and employee agree to the following:
Place of Employment:
The workplace for the employee will be at 123 Main
Street, Barcelona
Date of Employment:
The employment term will commence on January 2,
2020, for an indefinite period of time.
Trial Period:
The probationary period for the employee will be two months. In
which time the employee’s employment may be terminated without cause and
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the employer will not be held responsible or pay any severance pay to the
employee.
Duties:
The employee is expected to perform the following task:
● Answer telephone and pass on messages to appropriate
departments/people
● prepare correspondences from Laura Moore and reply to all incoming
correspondences in a timely manner
● Handle all facets of Administration work of Graphic Design Agency
● Handle payments and disbursements of petty-cash
● Other duties as assigned by the employer
Category:
This position of Administrative Assistant will be classified as
category 7 - Administrative Assistants.
Base Salary:
Base salary will be € 1,500.00 per month with a total of 14
payments made in a calendar year, with the 1st extra payment payable in June
and the 2nd in December. Paid on a monthly basis.
Timings:
Workday will commence at 9 am for a period of eight hours and the
work-week will be from Monday - Friday.
Holidays:
Nine national and Five local holidays will be granted with a
maximum
of 14 holidays allowed in total in a calendar year.
EMPLOYMENT CONTRACT
This indefinite employment contract is between GRAPHIC DESIGN AGENCY,
which will also be referred to as the “ employer “ and JANE DOE, who will also
be referred to as the “ employee “
EMPLOYMENT CONTRACT
This indefinite employment contract is between GRAPHIC DESIGN AGENCY,
which will also be referred to as the “ employer “ and JOHN BILL, who will also
be referred to as the “ employee “
The employer and employee agree to the following:
Place of Employment:
The workplace for the employee will be at Av. de
Menéndez Pelayo, 34, Madrid
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Date of Employment:
The employment term will commence on January 2,
2020, for an indefinite period of time.
Trial Period:
The probationary period for the employee will be two months. In
which time the employee’s employment may be terminated without cause and
the employer will not be held responsible or pay any severance pay to the
employee.
Specific Clause: recognised degree of disability of 37%.
Duties:
The employee is expected to perform the following task:
● Answer telephone and pass on messages to appropriate departments/people
● prepare correspondences from Laura Moore and reply to all incoming
correspondences in a timely manner
● Handle all facets of Administration work of Graphic Design Agency
● Handle payments and disbursements of petty-cash
● Other duties as assigned by the employer.
Category: category 7 - Administrative Assistants.
Base Salary: Base salary will be € 1,500.00 per month with a total of 14
payments made in a calendar year, with the 1st extra payment payable in June
and the 2nd in December. Paid on a monthly basis.
Timings: Workday will commence at 9 am for a period of eight hours and the
work-week will be from Monday - Friday.
Holidays: Nine national and Five local holidays will be granted with a maximum
of 14 holidays allowed in total in a calendar year.
Vacation: Employee is entitled to 30 calendar days of paid vacation after
completion of one year of service.
Notices: Any correspondence from the employer to the employee or vice versa
shall be mailed to the following address:
EMPLOYER: Graphic Design Agency
Attn: Laura Moore Av. de Menéndez Pelayo, 34
Madrid, xxxxx
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EMPLOYER: Erdgul Bill
Calle de Serrano, 74
Madrid, xxxxx
Before signing this contract, the employee certifies that they had an attorney
advise them of their rights and obligations under this contract.
----------------------
-----------------------------
Jhon Bill
Laura Moore
January 02, 2020
CEO
Graphic Design Agency
January 02, 2020
If this contract was written for an employer and employee in the United
Kingdom, the differences when compared to the Spanish employment contract
would be as follow:
Issue
Employment Contract
U.K
Not Mandatory For
indiefinite or Temporary
employment
minimum wage
€1,708.7 per month
Legal System
British Common Law
Payment Frequency
Payments could be
weekly, bi-weekly or
monthly.
Employees have to be
informed of their duties
and responsibility could
be written or verbal
Work Duties
Spain
Mandatory for temporary
employment. Suggested
for indefinite term
employment
€950.00 to €1000.00 per
month
Civil Law System
Most employees are paid
monthly with two extra
payments in July and
December
The job description has to
be spelled out in the
contract
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What rights do
employees have to paid
time off when they are
sick?
Minimum holiday
entitlement
Overtime
Employees receive social
security payments for up to
18 months if they are
absent from work for four
or more consecutive days
due to a common illness or
accident. Employees are
entitled to pay from the day
following the day off work if
the sick leave is due to an
occupational illness or
accident.
Once an employee has
All employees in England been continuously
and Wales have the right
employed for one year,
to 5.6 weeks' paid holiday. they are entitled to at least
This equates to 28 days
30 days' paid holiday and
per annum (based on a
an additional 14 public
five-day week).
holidays.
Unless an exemption
applies, the average
working time (including all
overtime and time spent
working for others) must
not exceed 48 hours per
Paid overtime may not
week averaged over a 17- exceed 80 hours per year
week reference period or
any other relevant period
agreed upon under a
relevant workforce
agreement.
Employees who have
been absent from work for
four or more consecutive
days receive statutory sick
pay for up to 28 weeks if
they meet the statutory
qualification requirements.
This may be
supplemented by the
employer's contractual or
discretionary sick pay.
2. We know the salaries agreed with two of the workers.
It develops the different steps to follow to prepare the payroll of each of them
and the financial nature of each of the ítems involved:
a. Administrative Assistant. Three-month seniority. He has an indefinite work
contract, base salary: € 1,500. Collective bargaining: € 50.
He has two extraordinary six-month accrual pays and receives the mon 06/30
and 12/31 of each year for an amount equal to the base salary. He has a
disability of 37% and is single without children. He has made two overtime
hours that month at a rate of € 15/h.
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The presumption here is that we will not pay the administrative assistant accrual
this month because it is neither June nor December.
Base Salary
Collective Bargaining
Overtime (2Hours - 15/hr)
Gross Pay
Deductions
1500
50
30
1580
Yearly
Monthly
Tax
Tax
Income tax
0 - 12,450 @ 19%
2,365.50
197.13
12,450 - 20,200 (7,750) 24%
1,860.00
155
20,200 - 21,000 (800) 30%
240
20
4,465.50
372.13
Annual Salary 21,000 / Total
Tax
Social Security:( includes 250 euro accrual - 2 months salary divided by 12 )
Common contingencies 4.7%
Unemployment 1.6%
Professional training 0.10%
Total Social Security
86.01
29.28
1.83
117.12
Net pay (Gross Pay – Total Tax – Social Security) = 1,090.75
b. Visual designer. 2-month seniority. He has a temporary contract.
Base salary: € 1,950. Collective bargaining: € 100. Productivity: € 6 / day. It has
two extraordinary six-month accrual payments and receives them apportioned
each month. He is married and has a 9-year-old son (his spouse receives
income of over € 1,500/year).
Base Salary
1950
Collective Bargaining
100
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Overtime (2Hours - 15/hr)
180
Accrual Pay (1/2 of 2 month's base
salary
325
Gross Pay
2555
Deductions:
Because he is married and has a child, the visual designer is entitled to a yearly
exemption of 14,516 euros. As a result, his taxable income will be ( 1950 x 14 =
27,300 less exemption of 14,516 = 12,784)
Deductions
Income tax
0 - 12,450 @ 19%
12,450 - 12,784 (334) 24%
Annual Salary 12,784 / Total Tax
Common contingencies 4.7%
Unemployment 1.6%
Professional training 0.10%
Total Social Security
Yearly
Tax
2,365.50
80.16
2,445.66
120.09
40.88
2.56
163.53
Monthly
Tax
197.13
6.68
203.81
Net pay (Gross Pay – Total Tax – Social Security) = 2,187.66
Once you have developed all the steps to follow in each case and the amount of
the items, make the official payroll of the administrative assistant.
Company: Graphic Designer
Tax Number: xxxxxxx
Address: Av. de Menéndez Pelayo, 34,
Madrid
Employee Name: Erdgul Bill
Tax Number: xxxxxxx
Address: Calle de Serrano, 74,
Madrid
Hire date:
Seniority:
Contract: Indefinite
Position: Administrative
Assistant Group: 7
Disability: 37%
Base Salary
Collective Bargaining
1500.00
50.00
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Overtime - 2 Hours @ 15/hr
Gross Pay
30.00
1580.00
Deductions:
Imcome Tax
Social Security
Common Contingecies
Unemployment
Professional Training
Total Deductions
Net Pay
372.13
85.01
29.28
1.83
488.34
1,090.75
HOW MUCH INCOME TAX DO YOU PAY IN SPAIN
That is determined by the amount of money you earn. This means that the tax is
progressive and operates in the following manner:
3. A year and a half after being hired, the administrative officer requests a
period of leave of six months due to personal reasons.
Make the severance taking into account that:
-
The leave is granted from July 25th.
-
The worker has 10 days of vacations pending.
-
During the month of July he made a total of 6 overtime hours
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You must specify the conditions of the periods of leave in Spain and compare
them with the terms of one of the countries studied; UK, United States or
Canada (you can choose the country you want).
Because it has not been stated that the Administrative Assistant's salary has
been increased, the calculation will be as follows:
Base Salary 1500 x 25/30
1250
Overtime ( 6 hours - 15/hr)
90
Vacation Pay annual 18000/360 days x 10 days
owing
500
Accrual Pay ( 2 months = 3000 x 25/360 June paid
208.33
Gross Pay
2048.33
Deductions:
Common contingencies 4.7%
96.27
Unemployment 1.6%
32.77
Professional training 0.10%
2.05
Total Social Security
131.09
Net Pay = 1,917.24
We've assumed that because taxes were paid from January to June of this
year, and the administrative assistant requested a 6-month leave for personal
reasons, they won't be working for the rest of the year. The taxes owed will be
significantly lower because we assumed they would be required to pay taxes on
all income earned from January to December.
Comparison of leave conditions in Spain and the United States. After one year
of service, employees in Spain are entitled to 30 calendar days of paid leave
(22 working days and 8 weekend days). Furthermore, employees are entitled to
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nine national holidays and up to five regional holidays, for a total of 14 days of
paid vacation. The amount of annual leave can be increased based on the
worker's collective bargaining agreement.
If an employee is fired or quits his or her job, the employee is entitled to a
prorated amount of money in lieu of time off.
In contrast, the United States does not require workers to take any time off, but
most private employers do offer 10 days off after one year of employment. This
can be increased to 14 days after 5 years, 17 days after 10 years, and 20 days
after 20 years of service. Employees are given nine national holidays each year.
If those holidays happen to fall on a weekend, the employee will be given the
following Monday or the preceding Friday off.
Bibliography:
MEASURES TO SUPPORT EMPLOYERS – SPAIN –ARTICLE 27
https://www.euroblind.org/convention/article-27/spain
Employment contracts in Spain: how to choose the most appropriate one?
https://www.mariscal-abogados.com/employment-contracts-spain/
Minimum Wage Increased in Spain - March 4, 2022
https://wageindicator.org/salary/minimum-wage/minimum-wagesnews/2022/minimum-wage-increased-in-spain-march-4-2022
United Kingdom (UK) National Minimum Wage - NMW
https://countryeconomy.com/national-minimum-wage/uk
Key Differences Between Spanish And English Employment Law: An
Employer's Guide
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https://www.mondaq.com/uk/employee-rights-labour-relations/367578/keydifferences-between-spanish-and-english-employment-law-an-employer39sguide
HOW MUCH INCOME TAX DO YOU PAY IN SPAIN AS A RESIDENT?
https://www.myspanishresidency.com/taxes-spain/
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