Work in family

When starting a new business we try to cut costs the maximum that we can while we seek to surround ourselves with people we can rely on so usually the family are the first in which we think to work with us .

It is quite common that our customers ask us if their wife, husband or children can help them in their business, if they have to pay the social security being a family member and in its case if they can hire the family member under a work contract or they should be registered as self-employed.

When a self-employed entrepreneur wants to incorporate into his business to an immediate family member this must contribute to the Social Safety Scheme as Self-employed. It is what is called family member and that quote is independent on the working hours that they perform. Keep in mind that this situation applies in cases of family members to the second degree of consanguinity or affinity if they live with the employer.

 There is an exception when it comes to children under 30 years of the employer (the minimum age to become self-employed is16 ), who may be listed on the General Scheme regardless of whether or not they live together, in this case the son or daughter can work under a work contract. In January 2010 the government introduced the possibility of contracting children over 30 years with special difficulties in the labor market, in particular for people with mental disability equal to or greater than 33% or with physical or sensory disabilities in grade expanded equal to or greater than 65%.

 In any case, the family members working under a work contract would not be entitled to collect unemployment benefits.

The main advantage of being self-employed collaborator is that due to the lack of obligation of registration with the tax authorities they are exempt from the quarterly tax obligations so it is not necessary to present statements or quarterly VAT and personal income taxes, which are the obligation of all the independent business owners.

Therefore, the called “autónomos colaboradores” will only have to submit their income tax return each year, like any other worker and pay applicable taxes based on earned income, which must be substantiated by receipts or payrolls.

Because the vast majority of people who work in family businesses do not do it habitually  and there is not the possibility of paying proportional quotas  is estimated that more than 270,000 people working in family business without paying social security contributions, so to encourage people the Government has introduced changes and some benefits in the contributions to Social Security familiar collaborator and now, the family members of self-employed people  will have a 50% reduction in their self-employment quotas during a period of time of 18 months.

For further information do not hesitate in contact us