Example: Reduction due to employment incentives

Mr. AAA develops the activity of a two-star restaurant, section 671.4 of the IAE .

During the 2019 financial year, 3 full-time, permanent employees worked in the activity, each of whom totalled 2,000 hours/year. In June, an apprentice was hired for a period of 6 months, totalling 1,020 hours of work.

In 2020, the workforce situation was as follows:

• The three employees with permanent contracts remain in the company, working the same annual working hours as in the previous year. However, as a result of not counting as a period in which the activity was carried out the days in which the state of alarm was declared in the first half of 2020, the hours of effective work have been 1,460 hours/year.
• On January 2, a worker was hired on a permanent basis, totaling 1,460 hours/year (taking into account the non-computable days in which the state of alarm was declared in the first half of 2020).
• On August 1, 2 new employees were hired temporarily for a period of 6 months, each of whom worked a total of 500 hours/year.

Determine the reduction for employment incentives corresponding to the 2020 fiscal year, assuming that the number of annual hours established in the corresponding collective agreement is 1,800.

Solution:

1. Determination of the coefficient for increasing the number of salaried people .

1. Increase in the number of salaried people in 2020 compared to 2019 in absolute terms:

   • Salaried persons in 2019: 4 people
   • Salaried persons in 2020: 6 persons
   • Increase in the number of salaried people: 2 people

2. Increase in the number of units of the "salaried personnel" module in 2020 compared to 2019:

   • Number of units of the "salaried personnel" module in 2019.
     (3 x 2,000/1,800) + (60% s/1,020/1,800) = 3.33 + 0.33 = 3.66 people
   • Number of units of the "salaried personnel" module in 2020
     (4 x 1,460/1,800) + (2 x 500/1,800) = 3.24 + 0.55 = 3.79 people
   • Increase in the number of units: 3.79 – 3.66 = 0.13 people

If both requirements are met, the positive difference between the number of units of the "salaried personnel" module in 2020 compared to 2019 will be multiplied by 0.40.

Coefficient for increase in the number of salaried people: 0.40 x 0.13 = 0.052

2. Determination of the coefficient by sections of the number of units of the "salaried personnel" module, excluding the positive difference on which the previous coefficient of 0.4 has been applied.

Total	3.66		0.532
Tranche	Salaried staff	Coefficient per section	Totals
Up to 1.00	1	0.10	0.10
Between 1.01 and 3.00	2	0.15	0.30
Between 3.01 and 5.00	0.66	0.20	0.132

3. Reduction coefficient: 0.052 + 0.532 = 0.584

4. Amount of the reduction for employment incentives.

It is the result of multiplying the annual yield per unit before amortization of the "salaried personnel" module (3,709.88) by the reduction coefficient (sum of the coefficient for the increase in the number of employees plus the coefficient by sections: 0.584). That is, 3,709.88 x 0.584 = 2,166.57 euros.