Continuing on from last month, now that you know the various types of contracts available to potential employees, the next step is to learn how to set one up. A code is required from the Social Security office to allow you to hire. From there as the employer, you become responsible for informing them of any new, cancelled or modified contracts and each month you must pay an additional Social Security contribution for that contract (an amount equivalent to approximately 40% of the employee’s salary), however your asesor can check to see if any reductions apply depending on the contract and the employee’s circumstances.
As a business owner you may know from the get-go that you need staff or the situation may arise during the busy season when you are run off your feet and could do with an extra set of hands and if you’re particularly lucky, your business will have grown to a point where you have no choice but to contract staff. There are plenty of horror stories doing the rounds about the pitfalls of hiring outside help or assurances that it isn’t necessary to give “official” contracts, you can just pay in cash.
