NB: Part of this article is thanks to Cristina Lizarralde, a teacher from a group of TEFL teachers who reminded me we should write an article about ERTEs and IRPF 2020. Thank you Cristina for your contribution.
So, did you think the only unpleasant surprises for 2020 were being paid 70% of your salary, or being paid late? You were wrong…there are, unfortunatelly, more. I will summarise them for you.
- Even if you haven’t done the IRPF (Renta) before, you will probably have to do it next year. This year you will have to entities paying you: your company and SEPE.
With 1 payer you don’t need to do the IRFP if you earn less than 22.000€.
Wtih 2 payers if one of them pays more than 1.500€, you will have to do it if, between both payers , you’ve earned more than 14.000€ - The result of your IRPF 2020 will probably be positive: you will have to pay.
Why? The main reason is that SEPE will not deduct taxes during your ERTE. Remember that, if a company pays you 1200€, you are really being paid 1600-1700, but your company pays taxes for you (for more information look at this video in Spanish).
SEPE will not pay those taxes, so that means you will have to pay them next year (no…Hacienda never forgets). This can mean more than 2000€ if your ERTE lasts longer than 4 months.How to avoid this? The solution is basically to pay taxes during the ERTE, of pay more at the end to compensate. If you are still in an ERTE, go to SEPE and ask them to deduct the same quantity as your company was doing (0r proportional to the 70%).
If your ERTE has finished, but you don’t want an umpleasant surprise, ask your company to rise the tax deduction until December. That way you can compensate for the months you didn’t pay. - You will probably have less holidays this year. Remember holidays depend on the number of days worked during the year. If you were in an ERTE (not working) for 4 months, your holidays will be reduced by a third.
- You will not receive your «paga extra» (extra monthly salary). If you get paid in 14 months instead of 12, you will probably not receive one of your extra payments. Again this depends on the months worked, and you have not worked for 4+ months.
I know it is not good news…but information is the best solution for most problems. Be aware, be ready.
See you soon and keep safe.