To plan your expenses and income properly, you will need to know how much you are going to pay as a self-employed person's Social Security contribution in order to optimize it as much as possible and control your accounting.
1. Know the minimum and maximum base
The fee you pay as a self-employed person will depend on the contribution base you have chosen. Currently, the minimum contribution base is 919.80 euros per month and the maximum is 3,751.20 euros per month.
Don't forget that you can check the contribution bases for self-employed workers online on the Social Security website. On the other hand, the contribution rate will depend on australia phone number for whatsapp whether you are paying contributions for temporary disability or not:
In the case of contributions with temporary disability, the rate is 29.80%.
In the case of contributions without temporary disability, the rate is 26.50%.
2. Your age also influences
In relation to the quote, another aspect to consider is your age. These are the basic cases:
If you are 47 years old or younger , you can choose between the minimum and maximum base limits.
If you are 48 years old or older , the contribution base will be between 992.10 euros and 2,023.50 euros.
3. You are a new freelancer: this is of interest to you
New self-employed workers who contribute with the minimum base will pay a fee of 50 euros per month for the first 12 months . But did you know that, if you choose a higher contribution base, you will have the advantage of being able to apply an 80% reduction to the fee during that period?
4. Self-employed: taxes to pay
Knowing your business thoroughly will help you a lot in making decisions regarding the contribution base to know when you can contribute more to your retirement and other unforeseen events that may arise.
One way to understand your company is to analyze your accounting and consider the periodic payment of taxes ( VAT and IRPF ) through a cloud accounting solution . You will know at all times when and how much you will have to pay for taxes and how much money you have.
5. Change your contribution base depending on your business
With the new Self-Employed Workers Act, which is expected to be approved in a few months, the contribution base can be changed up to four times in one year , whereas previously it was only possible to do so twice. In this way, self-employed workers will be able to adapt the contribution base to their business, depending on the income they receive or the expenses they have.
6. Bonus for conciliation
If you are self-employed and hire a full-time or part-time worker with a contract of at least 3 months, to reduce or cease your activity to care for a child under 7 years of age or a family member with a disability , you will be entitled to a reduction of 100% in the case of full-time work and 50% in the case of part-time work.