Practical case
Don LMH with a disability of 33 percent and hired indefinitely by the company "XXX" on January 1, 1999, he was fired on March 12, 2019. Said dismissal was judicially classified as unfair. The data provided by the company in the corresponding certificate of withholdings and payments on account of Personal Income Tax are the following:
Ordinary remuneration (full monetary income): 8,100.00
Redundancy payment: 75,000.00
Personal Income Tax Withholdings: 0.00
Discounts: Social Security contributions: 610.00
Don LMH You are entitled to two years of unemployment benefits as of April 1, 2019; However, in order to join an associated worker cooperative, he decides to use the single payment method to collect said benefit, increasing the amount received to 16,800 euros.
The remaining income not exempt from personal income tax obtained by the taxpayer in 2019 amounted to 5,500 euros.
Determine the reduced net return on work, taking into account that, for the calculation of compensation for dismissal or dismissal of the worker up to the amount established as mandatory in the Workers' Statute, the daily regulatory salary that must be taken into consideration is 90 euros.
Solution:
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Treatment of compensation received for dismissal .
As this is an unfair dismissal that occurred on March 12, 2019, to determine the exempt compensation, it must be taken into account that the eleventh transitional provision.2 of Royal Legislative Decree 2/2015, of October 23, which approves the consolidated text of the Workers' Statute Law (BOE of 24).
Said transitional provision eleventh.2 of the consolidated text of the Law of the Workers' Statute establishes that compensation for unfair dismissal of contracts formalized prior to February 12, 2012 will be calculated at a rate of 45 days of salary per year of service for the time of provision of services prior to said date, the periods of time less than one year being prorated by months, and at a rate of 33 days of salary per year of service for the time of provision of services after, the periods of service being also prorated by months. time less than one year.
The resulting compensation amount may not be greater than 720 days of salary, unless the calculation of the compensation for the period prior to February 12, 2012 results in a higher number of days, in which case this will be applied as the maximum compensation amount, without That this amount may be greater than 42 monthly payments, in no case.
Determination of the exempt amount in accordance with the eleventh transitional provision.2 of the consolidated text of the Workers' Statute Law :
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Period 01-01-1999 to 02-11-2012 (13 years and 2 months old):
Days worked in the company:
45 days x 13 years = 585 days
(45 days x 2 months) / 12 months = 7.5 days
Total (585 + 7.5) = 592.5 days
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Period 02-12-2012 to 03-12-2019 (7 years and 1 month)
Days worked in the company:
33 days x 7 years = 231 days
(33 days x 1 month) ÷ 12 months = 2.75 days
Total (231+ 2.75): 233.75 days
Exempt compensation amount :
To the extent that the days taken into account for the calculation of compensation for the two periods is 826.25 days (592.5 days + 233.75 days) and the amount of compensation cannot exceed 720 days of salary, the amount established as mandatory by the Workers' Statute will be 64,800 euros (90 euros x 720 days).
The amount of compensation for unfair dismissal established as mandatory by the Workers' Statute (64,800 euros) does not exceed the limit of 180,000 euros established in article 7.e) of the Personal Income Tax Law, so it is exempt in its entirety.
Non-exempt compensation amount :
The excess of the amount received over the exempt amount (75,000 – 64,800) = 10,200 euros is subject to tax as income from work. However, the reduction percentage of 30 percent must be applied to said amount as it is understood to be generated in a period of time greater than 2 years. See the previous sections of this Chapter in this regard.
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Unemployment benefit in its single payment modality .
Unemployment benefit in the single payment modality, regardless of its amount, is exempt from personal income tax.
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Declaration of the returns obtained .
Full returns: (8,100 + 10,200): 18,300.00
Reduction article 18.2 Personal Income Tax Law: (30% s/ 10,200): 3,060.00
Total eligible income: 15,240.00
Deductible expenses: (Social Security) article 19.2.a) Personal Income Tax Law: 610.00
Previous net performance (15,240.00 – 610.00) (1) : 14,630.00
Other deductible expenses article 19.2.f) Personal Income Tax Law:
By obtaining work income: 2,000.00
Active workers with disabilities (2) : 3,500.00
Net performance: (14,630 – 2,000 – 3,500): 9,130.00
Reduction for obtaining work income (3) : 3,292.50
Reduced net return: (9,130.00 -3,292.50) = 5,837.50
Notes to example :
(1) The deductible expenses under the concept of "other different expenses" of article 19.2.f) of the Personal Income Tax Law are limited to the full performance of the work once reduced by the rest of the deductible expenses. For this reason, the previous net return must be calculated to set the limit that cannot be exceeded due to said expenses. (return)
(2) In the present case, all full earnings from work are linked to their status as a worker with a disability, so the limit of the increased expense for active workers with disabilities will be the previously calculated net earnings (14,630 euros). (return)
(3) Since the previous net income from work is between 13,115 and 16,825 euros and there is no income, excluding exempt income, other than income from work, exceeding 6,500 euros (specifically, it has 5,500 euros), the amount of the reduction for obtaining income from work Applying article 20 of the Personal Income Tax Law as drafted on 01/01/2019, it would be: 5,565 - [1.5 x (14,630 - 13,115)] = 3,292.5 (return)