If you are starting up your own business, illusion is the engine that moves you, but as your idea becomes a reality you realize that there are many management tasks that you must carry out and financial obligations that you have to comply. Among them, the payment of social security or contributions stands out , both yours and that of your employees if you have them.
Do you know what social security is and how it works? In today’s article we are going to solve all your doubts regarding this topic.
What Is Social Security?
In our legal system, all people who work , whether employed or self-employed, have to pay social security or Social Security contributions . These contributions are used to later calculate possible temporary disability, maternity and even retirement benefits .
Who Pays Social Security Or Contributions?
If you are self-employed you must pay for them yourself . In the case of self-employed workers, it is the employer who pays the contribution , withholding from the payroll the amount that corresponds to the employee.
How Are They Calculated And What Is The Calculation For?
The amount to be paid in each specific case is different. If you have a company with several workers it is quite possible that each of them pay a different amount as a contribution.
To make the calculation, the employee’s salary, the contribution bases and the percentages that apply to each of the bases are taken into account .
The maximum and minimum contribution bases usually vary each year, so if you have a business you should be especially attentive to this issue. In addition, the calculation will help you to prepare the annual budget for your business , since spending on social security or contributions is one of the most important that a company must assume.
Are You Up To Date On The Payment Of Contributions? Check Your Work Life
Whether you work for someone else or if you have your own business and want to know if you are up to date with regard to quotes, the best thing you can do is check your work life . If you have an electronic signature, you can download it directly at the Electronic Headquarters of the Social Security .
If you have your own business you already have enough worries and things to do, and we know that management and administration tasks are not easy. It is the easiest way to be up to date in the fulfillment of your obligations and to be able to focus on what really matters: your business.
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