Keys to correctly determining the amount to be seized
In the daily management of preparing the payroll of a company's employees, we find that they receive requests from different organizations to withhold and make available the amounts withheld to cover the responsibilities claimed.
An embargo is an action that several competent bodies (Tax Agency, Social Security, or other provincial or local bodies and even Courts) can declare for the satisfaction of an outstanding debt.
At this point, you should know that to proceed with the calculation of the seizure, several elements must be taken into account:
- 1. To determine the salary subject to garnishment, the net amount received by the employee subject to the garnishment order will be taken into consideration. That is, the gross salary less the deductions for income tax and social security contributions.
- 2. The calculation to determine the amount to be withheld for garnishment is based on the provisions of Article 607 of the Spanish Civil Procedure Law (LEC), which establishes that the amount equivalent to the minimum interprofessional wage (hereinafter SMI) is exempt from garnishment. Therefore, if the employee's net salary is only the SMI, the company will be unable to comply with the garnishment order, as established by law.
If the employee's net salary exceeds the minimum wage, the garnishment will be calculated according to the following scale:
1st. For the first additional amount up to the amount of twice the minimum interprofessional wage, 30 percent.
2nd. For the additional amount up to the equivalent of a third minimum interprofessional wage, 50 percent.
3rd. For the additional amount up to the equivalent of a fourth of the minimum interprofessional salary, 60 percent.
4th. For the additional amount up to the equivalent of one fifth of the minimum interprofessional salary, 75 percent.
5. For any amount exceeding the above amount, 90 percent
- 3. The minimum interprofessional wage mentioned in the previous section is subject to change each year. In 2016, it is set at €655.20 per month.
- 4. We must take into account a clarification in this regard established in Article 608 of the Spanish Civil Procedure Law (LEC), which states that the above provisions will not apply in the case of alimony payments, the obligation to pay of which arises directly from the law, including rulings in judgments issued in annulment, separation, or divorce proceedings regarding alimony owed to the spouse or children. In this case, the court will determine, at its discretion, the amount that may be seized.
- 5. The amount that has been withheld must be reflected in the employee's payroll, who has previously been informed by the company of the garnishment of his salary.
- 6. Finally, the company must pay the seized amount to the employee according to the instructions specified in the received request.
At Àmbit assessors, we specialize in corporate labor management. If you would like to learn more about this topic, or if you have any other questions regarding tax or labor consulting for your company, we would be happy to assist you.
Sonia Rodríguez,
Labor Management Area
Àmbit Assesor
Do you have any questions about this topic?
Our team of expert advisors will help you resolve any issues related to our services.
Contact us now
A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
Latest entries from MGI Àmbit
(see all)
Related
