Hiring a son
You want to hire your son to provide services for your company: will he be considered an employee or will he have to register as self-employed?
What do I do with my son?
Let’s not fool ourselves, children are often a headache, no matter how much we love and care for them.
Sometimes we have to hire a child because they want to take over the business, to give them an opportunity they don’t have outside the family environment or sometimes simply to get them to work.
In general, when hiring a child, he or she must pay Social Security contributions as a self-employed worker, since it is considered that he or she participates directly in the economic returns of his or her activity and that these remain in the family.
However, there are certain requirements that must be met in order for the child to be included in the self-employed regime and not in the employed workers’ regime.
See below for the differences between the two regimes and what exceptions exist.
Employing a child as an employee or self-employed person
RETA (self-employed regime) vs. RGSS (general regime)
Reta
The Special Regime for Self-Employed Workers (RETA) includes workers who regularly, personally and directly carry out an economic activity for profit.
However, in general terms, the General Regime of Social Security (RGSS) includes workers who provide their paid services on behalf of others and voluntarily, within the scope of organization and management of an employer.
RGSS
In addition to employees on behalf of others, the following people are also included in the RGSS, among others:
- Non-civil servant personnel dependent on State agencies, services or entities.
- Representative positions of unions who exercise union management functions, with exclusive or partial dedication, and receiving a remuneration.
- Domestic employees and drivers of tourist vehicles in the service of individuals.
Exclusions from the general regime
On the other hand, work that is occasionally carried out for reasons of friendship, benevolence or good neighbourliness or that gives rise to inclusion in one of the special regimes of Social Security are not included in the General Regime.
Hiring family members
Collaborating family member
Your spouse and your descendants, ascendants and other relatives by blood or affinity up to the second degree inclusive – and, where applicable, by adoption – who are employed at the workplace of your company or business must be registered with the RETA, provided that they live in your home, are over 18 years of age and are under your care.
They are not self-employed
When all the above requirements are not met, your family member must be registered with the RGSS.
For example, the cousin of a self-employed person or the child who does not live in the same home are not considered self-employed collaborating family members, so they must be included in the general regime.
Exception
If you are self-employed, you can hire as an employee (although they will be excluded from unemployment coverage) your children under 30 years of age, even if they live with you, and your children over 30 with special difficulty in finding a job.
They will be considered to have special difficulties when they are included in one of the following groups:
- People with cerebral palsy, with a mental illness or with an intellectual disability, with a recognized degree of disability equal to or greater than 33%.
- People with physical or sensory disabilities, with a recognized degree of disability equal to or greater than 33% and less than 65%, provided that they are registered for the first time in the SS.
- People with physical or sensory disabilities, with a recognized degree of disability equal to or greater than 65%.
Your spouse and your descendants, ascendants and other relatives by blood or affinity up to the second degree inclusive must be registered in the Special Regime for Self-Employed Workers.
Son of self-employed workers and unemployment
If you are self-employed and you hire your child under 30 years of age, you can register him/her in the General Scheme even if he/she lives with you.
However, your child will be excluded from unemployment protection (unless he/she proves his/her status as an employee with a fixed schedule, a salary according to an agreement, etc., in which case he/she will be able to pay unemployment contributions).
Well, even if he/she does not pay unemployment contributions:
- If you terminate the employment contract, your child will be legally unemployed.
Therefore, if he/she has sufficient previous contributions and meets the rest of the requirements, he/she will be able to access unemployment benefits at that time.
- If your child continues to work with you after turning 30, submit a declaration to the Treasury from both parties stating your child’s status as an employee.
From then on, he/she will be able to pay unemployment contributions.
Even if your child does not pay unemployment benefits, he or she will still be able to access the benefit when you terminate his or her contract if he or she has made previous contributions.
