Hiring an employee: Seguridad Social registration and contract

Hiring someone for the first time involves 3 actions before 2 different administrations, and the order matters. First, the company or the autónomo registers with the General Treasury of the Seguridad Social (TGSS) and obtains a contribution account code. Second, the worker is registered under that code, always before they start working. Third, the contract is communicated to the State Public Employment Service (SEPE) within the legal timeframe.

The company registration is done only once and lasts for its entire life. The registration of the worker and the communication of the contract are repeated with each new hire. Managora coordinates the 3 steps in the correct sequence so that the registration is recorded before the first day of work and the contract is communicated on time, without you having to log into each portal.

You can start each procedure from its corresponding page: company registration, employee registration, contract communication, deregistration, variation of details and the special system for domestic workers. The updated cost of each service is shown on the procedure page.

Before registering anyone, the employer must be registered with the Seguridad Social. Registration is the act by which the TGSS identifies you as an employer and assigns you a contribution account code (CCC), which is the number that groups the workers you will pay contributions for. It is requested using the official form TA.6 and is generally submitted electronically. It usually requires the identification document of the employer or representative (DNI, NIE (foreigner identification number) or CIF) and registration with the Agencia Tributaria (the Spanish tax agency) using form 036.

The CCC has 11 digits (province, number and control digits), preceded by the regime code, which in the General Regime is 0111. The registration is unique and valid throughout the national territory for the entire life of the company. However, if you carry out your activity in several provinces, or have groups of workers with different contribution modalities, you must have a CCC in each case (requested with form TA.7). Managora prepares the registration and gives you your code ready to register your first employee.

The registration notifies the Seguridad Social that a person is going to start working for you. The key rule is that the registration must be prior to the start of the activity: it can be submitted up to 60 calendar days before the start date, but never after the worker has started. A registration submitted when the person is already working, even for a few hours, is considered late and is punishable.

The registration is processed electronically through the RED System of the TGSS, indicating the worker's details, the contribution group, the type of contract and the start date. To do this, the worker needs to have a Seguridad Social number. Managora verifies the details, checks that the worker has an assigned number and submits the registration well in advance so that it becomes effective on the same day the employment relationship begins.

Registration with the Seguridad Social and communication of the contract are 2 different procedures. Once the contract is formalised, the company is obliged to communicate its content to the Public Employment Service by electronic means, through the Contrat@ application on the SEPE electronic headquarters. This obligation is regulated in Real Decreto 1424/2002. The usual deadline is 10 working days from when the contract is agreed, and it also covers extensions and, when there is legal representation of the workers, the basic copy of the contract.

Failing to communicate contracts to the Public Employment Service constitutes an infringement of the social order and can lead to a penalty. Managora communicates the contract in Contrat@ within the deadline and keeps the proof of communication, so that it is proven that the hiring was registered correctly.

When the employment relationship ends, the deregistration must be communicated to the Seguridad Social via the RED System, indicating the cause (end of contract, dismissal, resignation, retirement) and the effective date of termination. The deadline is 3 calendar days from the termination. Punctuality has a direct economic effect: if you submit the deregistration on time, your obligation to pay contributions for that worker ends on the day of termination; if you submit it late, you remain obliged to pay contributions until the day you communicate it.

During the employment relationship, details may change that must also be communicated via the RED System, such as the working hours in a part-time contract, the change from temporary to permanent or the contribution group. These are called variations of details. Managora processes both the deregistration and any variation within the regulatory deadline to avoid improper contributions and subsequent regularisations.

Hiring someone for the family home (cleaning, caregiving, domestic tasks) falls under the Special System for Domestic Workers, within the General Regime, and has its own rules. Since 1 January 2023, the employer is solely responsible for processing the registration and deregistration and paying the contributions, regardless of the number of hours worked. The old possibility for a person working less than 60 hours a month to handle their own registration and contributions has disappeared.

Registration can be requested up to 60 days before the start and up to the same day of commencement. Deregistration is communicated up to 3 calendar days after termination. Any change in working hours, remuneration or type of contract must also be communicated. Furthermore, recent regulations recognise protection for these workers in terms of occupational risk prevention, with obligations for the employer. Managora takes care of the registration, deregistration, variations and monthly contributions so that you comply from the first day.