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Let us give a new practical examples to apply the limits of the regularization of the type of retention, particularly established in the last paragraph of Article 87.5 the tax code, which, if no adjustment, a new type of applicable income must not exceed 43%.

This case concerns workers employed on temporary contracts with for several years in the same company. In this case, besides the application of these limits, we observed that in case of temporary contracts in a row in the same company, employees must withhold payroll deductions are high on last year to offset what can not be held at the beginning of employment relations.

Although not required to monitor these cases, we recommend the use of the Treasury program.
Initial Contract

Workers with 40 years, without disability, single and without children, who on January 1, he was hired for six months, where they receive a salary of € 9,000 (1,500 euros / month).

- Annual Compensation: 9000.00 euros.
- S. S. Price: € 580.50.

Results:

- Base = € 4,339.50.
- Minimum = € 5,151.00.
- Reduction = € 180.00.
- Type = 2% retention

As we have seen, given the brevity of contracts and levels of remuneration, workers can benefit from a minimum retention rate of 2% for contracts less than a year.