Companies must pay their employees' salaries on a monthly basis, which entails the payment of the corresponding social security contributions.
Self-employed workers are subject to the same obligation, and their accounting must reflect both their commercial activity and income and expense data.
When a company pays its salaries, it is obliged to pay its employees' monthly Social Security contributions . These contributions are derived from the corresponding denmark email list salaries. However, how are they settled? If you want to know how to account for social security, as well as the real cost that a company assumes for each of its employees, continue reading this post.
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Accounting for social security: who pays for social security?
The basic salary that an employee receives is only the tip of the iceberg of the costs that a company bears for having him or her on staff and registered. In addition to the costs associated with a possible unfair dismissal , this “mountain” of financial obligations is added to a monthly Social Security contribution that is paid by the company.
However, these settlements are not only the responsibility of the company (employer's share), but also involve a burden on the employee (worker's share). These are its characteristics:
Employer's share
The company is the one that pays the majority of its employees' Social Security contributions , the amount of which will depend on factors such as the type of contract, the sector in which they work, etc.
Entry 642 records the contributions that the company must pay to Social Security agencies as a result of the services they provide.
From the above-mentioned contributions, which must be recorded as expenses , the employer contributes to concepts such as unemployment benefits or salary in the event of sick leave. Below, we detail a breakdown with percentages associated with each concept:
Common contingencies: 23.60%
Work accidents and occupational diseases: between 1.5% and 7.15%.
Unemployment: 5.50%.
FOGASA: 0.20%.
In short, social security contributions generally amount to just over 30% of the gross salary paid by the company. For example, a worker who earns 21,000 euros a year costs the company 26,300 euros . However, this percentage increases by 6.70 for companies and 1.60 for workers, in the case of temporary contracts, regardless of whether the work day is full or part time.
