Collaborating self-employed worker: what is this and how do I register?
The RETA (Special Regime for Self-Employed Workers) includes a special category, the collaborating self-employed worker, which refers to those workers who are direct relatives of a self-employed worker. This category may raise many doubts and in this article we will clear them up.
In the case of small and medium-sized companies, it is often necessary to incorporate new workers. When these types of enterprises are family businesses, the collaborators are often members of the family circle because they know the business better than a hired employee. It is in these situations that it is important to know how to register such a family employee in order to be up to date with all regulations.
What requirements must be met when employing an immediate family member?
The Special Regime for Self-Employed Workers covers the case of a direct relative of a self-employed person who performs duties for him/her, but that is not the end of the questions. Many questions arise as to what requirements must be met in order to be a self-employed collaborator and what obligations and benefits this entails.
As mentioned above, a collaborating self-employed worker is a direct relative of another self-employed worker who lives with and works for the latter. There are a series of requirements that are determined by the Social Security when it comes to paying contributions:
1- Being a direct relative means being a spouse, ascendant, descendant or other relative of the self-employed holder by blood or affinity. This extends up to the second degree, inclusive, and by adoption.
2- The place of work must be occupied in its usual manner.
3- The collaborating self-employed person must be dependent on the holder and must not be registered as an employee.
4- The collaborating self-employed person must be over 16 years of age, as the Self-Employed Work Statute determines this and does not apply exceptions in the case of a direct relative.
As you can read, according to the requirements, it is not necessary under the current art. 35 of the LETA for the collaborator to live with or be dependent on the self-employed holder, however, we have mentioned it among the requirements, taking into account art. 12 of the LGSS and considering the regulatory vacuum of cohabitation and dependency, two aspects that make it applicable.
In short, we are talking about children, parents, parents-in-law, siblings, grandchildren, grandparents or brothers and sisters-in-law who usually work in the business (the figure of collaborating self-employed will not apply in the case of a temporary collaboration) and who are not registered on their own account. They must also be over 16 years of age because minors are prohibited from carrying out professional activity.
What about unmarried partners?
This is a more controversial case, as some years ago it was allowed for unmarried partners to be self-employed collaborators. Nowadays, however, after the Law for the Promotion of Self-Employment of 2015, this possibility was repealed. In any case, if we read the Law on Urgent Reforms of Self-Employment carefully, we will find in its text that the possibility of hiring a domestic partner as a collaborating self-employed person is raised.
What are the advantages and disadvantages of being a collaborating self-employed person?
There is one main advantage of being a collaborating self-employed worker: the 50% discount on the self-employed worker’s contribution. This happens during the first 18 months, as long as you register as a new self-employed person. During the following 6 months, the advantage continues, since a 25% rebate is applied.
But another aspect worth considering about the option of hiring a self-employed collaborator is that he/she will be exempt from filing quarterly VAT and income tax returns, having to file only the income tax return. The disadvantage is that they will not be able to benefit from the flat rate of 50 euros.
Who must register as a collaborating self-employed worker?
Direct family members (who meet the aforementioned requirements) who are employed in the workplace on a regular basis and live in the household and are not registered in another occupation must register. However, as in all cases there are exceptions, these are: a child under 30 years of age or over 30 years of age in the case of special difficulties in finding work, a mental disability of more than 33% or a physical or sensory disability of more than 65%. In these cases, the self-employed holder can choose between collaborating self-employed or an employment contract under the General Scheme.
How should contributions be made and what are the tax obligations?
If you wish to register as a collaborating self-employed worker with the Social Security, you must present form TA.0521/2. This form corresponds to an application for registration in the special regime for self-employed workers in the category of family collaborator of the owner of the holding. It is not necessary to register with the tax authorities. What is necessary is to provide complementary documentation such as the family record book, the DNI and a copy of the registration with the Tax Office of the family member who will be the owner of the business.
All self-employed workers may hire their children under the age of 30 and over the age of 16 as employees, even if they live with them. In this case, unemployment cover (given the protective action it provides for hired family members) will be excluded.
The importance of having advice
We know that running a business is not easy and that, although it may sound easy to manage, all these aspects add up to make the job often cumbersome. Just as the figure of the self-employed collaborator appears in response to the need for family businesses to lighten the workload, having professional advice can also free up our minds so that more business opportunities can arise.
At Blegal we offer you the chance to make the leap to a quality consultancy firm. We offer you a comprehensive and complete solution for all your procedures. And what’s more, online and in person. Ideal for resolving these doubts and any others that may arise in your business. Contact us, we know we have a solution for you.