NAVARRA: How to calculate the withholding of your employees

For these purposes, you must take into account all the remuneration that you plan to pay them (both fixed and variable) and their personal circumstances, and once this is done, consult the withholding tax table to determine the applicable withholding rate in each case:

Predictable remuneration

If there are variable remunerations (bonuses, productivity incentives, overtime hours, etc.), compute at least those paid during the previous year, unless there are circumstances that allow proving that this year they will be lower. You must also compute the expected in-kind remunerations.

If variations occur in the amount of remunerations during the year, a new percentage must be calculated taking into account both the remunerations previously paid and those that the worker is expected to receive within the same calendar year. This new percentage will apply exclusively from the date the variations occur.

Personal circumstances

Furthermore, you must take into account the personal and family circumstances of your employee (number of children, if they pay compensatory pensions, if they have any disabilities, etc.), based on the information provided by the employee.

Our professionals will help you calculate the withholdings applicable to your employees.