PROJECT (A)

UNIT 5.
THE SOCIAL
SECURITY
MODULE 7. UF2 – REMUNERATIONS, PAYROLL, AND (A)
OFFICIAL OBLIGATIONS.
PROJECT UNIT 5. The Social Security.

Company’s name BAM’S COMPANY

MARYEM MAHDI
Student 1
BASSAM BASTIL
Student 2
AARON MEZA
Student 3

Student 4

Your consultant company that provides legal services in The Social Security´s Law needs to give
solutions to some issues by giving advice as part of a new project.

A new Canadian company owned by Ms. Camille Dubois; you have an appointment with her and
your colleagues to answer to some legal issues that Ms. Dubois wants to comply with the Social
Security contributions and procedures required due to the end of the economic year.

Your consultant company needs to get involved and solve the legal aspects in The Social Security’s
Law that Ms. Dubois ask you, writing down all the answers based on the Workers’ Statute Law of
2015. The group should discuss to find out the correct answers.

At the end of the unit two members of the group will have to write down a report with the correct
answers to all the legal questions proposed by Ms. Dubois. The other two members of the group will
have to prepare a brief presentation about the topic.

Two members of the second (A) group will have to write down another report with the correct
answers. And the other two members will have to listen to the brief presentation about the topic
given by the other (A) and take notes so at the end of the presentation they will have to argue about
the different answers given or agreed on the answers given.

These questions are just a part of the whole Project Unit 5, so you will need to keep all the work until
providing the final report and presentation.

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PROJECT A
PROPOSED QUESTIONS:

THE SOCIAL SECURITY IN SPAIN

1.Indicate in which Social Security scheme the following workers should be included:
a) An individual entrepreneur who owns and works in a restaurant.
Is a special regime because is an individual entrepreneur
b) A cook hired by the aforementioned restaurant.
Is a general regime
c) An administrative staff working in a shopping center.
Is a general regime
d) An assistant working part-time in an agency.
Is a special regime because the assistant works part-time
e) A student in a vocational training program.
Is a special regime because it is a student
f) An administrative civil servant working in a ministry.
Is a special regime because it is a civil servant
g) A mining pickman.
Is a special regime because it is a pickman
h) A fisherman fishing in the Bay of Biscay.
Is a special regime because he works in a different place.

2.Manel, a self-employed worker, and his spouse manage a family business. They also have Teresa
employed on a part-time basis. Additionally, their son, who is studying, collaborates on weekends.
Indicate the scheme under which each of these workers will be included.

In this case Manel’s regime is special because he is self-employed as her spouse. Also his son is in a
special regime because he is a student. Finally Teresa works part-time, so her regime is special.

SOCIAL SECURITY COMPANIES’ OBLIGATIONS

3.Complete in your notebook a table like the following, indicating the model and deadline by which
the company must carry out the procedures specified by the General Treasury of Social Security.

Answer:

PROCEDURE MODEL DEADLINE

Company registration TA 6 Before commencing activities.

Worker affiliation TA 1 At least 60 calendar days before the start of the

activity

Worker enrollment TA 2/S At least 60 days before the start of the activity

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PROJECT A
 Self-employed worker TA 0521 At least 60 days before the start of the activity
registration

Worker data variations and TA 2/S 3 calendar days following the cessation of work to
deregistrations notify.

4.Pere, 24 years old, completed the Administration and Finance Vocational Training three years ago.
He worked for the first two years and is currently unemployed, planning to start a bike rental store
with a friend who, after working for 18 months, is also unemployed. They need to perform various
procedures. Answer the following questions regarding dealings they have to carry out with Social
Security:
a) Where do they need to register?

1. In-person: They can register at the Social Security Treasury Office (TGSS) in the
province where their bike rental store will be located. This involves physically visiting
the TGSS office and completing the registration process.

2. Online: Alternatively, they can choose to register online using the RED System
(Electronic Data Submission) or through the Electronic Office of Social Security with a
digital certificate. This option allows them to complete the registration process
electronically without the need for in-person visits.

Since Pere and his friend are planning to start a business together, they will need to ensure
they comply with all legal requirements, including registering with Social Security to ensure
they and any future employees are covered for social security benefits and contributions.

b) Is affiliation necessary?
Yes, affiliation to the Social Security system is necessary for individuals who are
self-employed. Since Pere and his friend are planning to start a bike rental store as owners,
they will be considered self-employed and will need to affiliate with the special regime for
self-employed workers (Regime Especial dos Trabalhadores Independentes - RETA) under
the Social Security system in Spain. This affiliation is necessary to ensure they have access
to social security benefits and are compliant with legal requirements for self-employed
individuals.
c) Where will they enroll, within what deadline, and what form should they fill out?
They should enroll at the nearest Social Security office (Tesorería General de la Seguridad
Social). The enrollment should be done within 30 days from the start of their self-employed
activity. The specific form to be filled out is TA.0521.
d) What contribution base will they be taxed on?
Self-employed individuals in Spain are required to choose a contribution base upon which
their Social Security contributions will be calculated.
e) What type of bonus can they have on the fee?
Bonuses exist in the Social Security contributions of self-employed individuals based on their
profile, especially for newcomers. These reductions can offer financial relief as they establish
their business.

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PROJECT A
5.Nord Company, Inc. hired a young person who had just obtained the title of Higher Technician in
Administration and Finance, on a full-time basis and with an indefinite contract.

Indicate:
a) Who is obliged to contribute to Social Security and from when? Both the employer (Nord
Company, Inc.) and the employee are obligated to contribute to Social Security.
b) Who will deposit the amount of the contributions, how often, and where? The employer is
responsible for deducting the employee's Social Security contributions from their salary and
making additional employer contributions. These contributions are deposited with the Spanish
Social Security system. The contributions are typically paid monthly, and the employer is
responsible for handling this process.
c) Can it be agreed that only one of the parties contributes? No because each part has their own
contribution responsibilities.

6.Two entrepreneurs formed a company on February 1, 2021, named BRICO, Inc. (BRICOSA). The
details are as follows:
● Business Activity: retail sale of DIY articles.
● VAT number (NIF): A373737373.
● Tax activity code: 653.6. Retail trade of DIY articles.
● Address: Alcalde Sainz de Baranda Street, 182 - 28007 Madrid.
● http://www.bricosa.es The company was registered on February 28, 2021 in the Madrid
Mercantile Registry, number 3, volume 20, book 3, folio 100, Sheet 3120. The company is
represented by one of the founding partners, with the following details:
● Pauline Peace Reg, who will be the sole administrator.
● ID number (DNI): 28678900Q.
● Address: Athos Street, 150 - 28011 Madrid.
● Social Security affiliation number (NAF): 28/00005134/28.
● Email: [email protected].
● Mobile phone: 654.321.000.

Required:
Document completion.
a) Fill in the company registration document with Social Security, as a prior procedure to hiring a
worker. The policy to cover work accidents (AT) is arranged with the INSS. Upon submission
of the application by the legal representative, the contribution account code has been
assigned on March 1: 28/7691401/28.

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PROJECT A
 6
PROJECT A
 b) Fill in the document corresponding to the registration as the sole administrator for Pauline
Peace. Consider the deadline for the procedure and the form to be filled out. Knowing that the
minimum contribution base for working partners corresponds to the minimum base of
Contribution Group 1 of the General Regime, calculate the minimum amount for which this
worker will contribute. You can find the bases to calculate the amount on the website
www.seg-social.es.

The calculation of the contribution group 1 knowing that the minimum contribution is €950.98:
950.98/12= €79.24 per month

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PROJECT A
INSPECTION ENTITIES

7.In 2015, Esther and her company agreed to simulate a disciplinary dismissal so she could claim
unemployment benefits. The Public Employment Service (SEPE) discovered this in 2021. Can the
company and the worker be subject to sanctions?
Tip: Search on Internet the Law on Infractions and Sanctions in the Social Order -Reial decret
legislatiu 5/2000 del text refós sobre Sancions I Infraccions en L’Ordre Social [LISOS].

In this case the sanctions that they will have are:

● Improper or Null Dismissal: If the simulated disciplinary dismissal is uncovered, it may be

deemed improper or null. In the case of an improper dismissal, the company may be
required to compensate the affected employee. In a null dismissal, the employee might be
reinstated.
● Financial Penalties: Authorities can impose fines on the company for engaging in
fraudulent practices. The amount of fines can vary based on the severity of the offense.
● Civil Liability: Employees can pursue legal action, seeking damages for the deceit endured.
This could result in additional financial compensation for the affected employees.
● Reputational Damage: Beyond legal consequences, the company may suffer damage to its
reputation, impacting relationships with clients, suppliers, and the community.

But the violation occurred in 2015 and was uncovered in 2021. With over four years elapsed, the
statute of limitations stipulates that if an infraction surpasses this timeframe, no sanctions need
to be pursued.

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PROJECT A