What a company’s employment management includes
- Monthly preparation of payroll and calculation of (foral) personal income tax (IRPF) withholdings.
- Preparation and filing of social security contributions (Sistema RED, SILTRA) and of the withholding return before the corresponding Foral Tax Authority.
- Hiring: choosing the type of contract, registrations and deregistrations, extensions and any applicable rebates.
- Managing temporary incapacity, leave, career breaks and final settlements.
- Applying the sectoral collective agreement and Basque Country agreements where relevant.
- Representation and defence before the Labour Inspectorate and in employment disputes.
Payroll and Social Security: where SMEs go wrong
| Common error | Consequence |
|---|---|
| Applying the minimum 2% withholding rate on temporary contracts without adjusting it on extension | Adjustment and possible penalty |
| Choosing the wrong contribution group or collective agreement | Contribution shortfalls with a surcharge |
| Not applying rebates you are entitled to | Avoidable employment cost |
| Filing social security contributions late | Surcharges and interest from the TGSS |
Collective agreements and Basque Country specifics
In the Basque Country, state, regional and provincial collective agreements coexist, and personal income tax (IRPF) withholding on payroll is governed by the foral rules of Bizkaia, Gipuzkoa or Araba, not by the state ones.
A correctly calculated payslip requires applying the right collective agreement and the foral withholding table that corresponds to the company’s tax domicile.
When is it worth outsourcing employment management?
From the first hire it already pays to outsource: the cost of an employment advisory firm is far lower than that of a Social Security adjustment or an Inspectorate penalty.
For a growing workforce, integrated employment, tax and accounting management avoids mismatches between payroll, the accounts and the year-end close.
Employment management with Grupo Asegi
At Grupo Asegi we handle the employment side for more than 3,000 clients in the Basque Country and Navarra from our offices in Bilbao, Vitoria-Gasteiz and Donostia.
Payroll, social security contributions, hiring and representation before the Inspectorate, coordinated with your tax and accounting advisers within a single group.
Frequently asked questions
- What is the difference between an administrative agency and an employment advisory firm?
- An administrative agency processes paperwork; an employment advisory firm also analyses collective agreements, rebates and risks, and represents you before the Labour Inspectorate.
- Is payroll IRPF withholding the state one in the Basque Country?
- No. The foral table of Bizkaia, Gipuzkoa or Araba applies, depending on the company's tax domicile.
- From how many employees is it worth outsourcing?
- From the very first one. The cost of an adjustment or a penalty far exceeds the cost of the advisory firm.
- Do you also handle Social Security registrations?
- Yes: registrations, deregistrations, contracts, social security contributions and the whole employment cycle.
General information only; it does not replace professional advice. Foral legislation changes frequently — check the date it was last updated.