3 Common Tax Mistakes Our Labor Advisory Service Also Helps Prevent

Having a robust labor service not only prevents conflicts with employees but also safeguards your company against costly tax mistakes. At Adlanter, we understand this interconnection and work with an integrated approach to ensure your labor, fiscal, and accounting processes are fully aligned and comply with current regulations. Below, we analyze three common mistakes whose prevention is key.

1️⃣ Incorrect Classification of Employees

One of the riskiest mistakes is misclassifying a labor relationship. It is common to formalize a service agreement with a self-employed professional when, in practice, the elements of subordination and dependence that define an employment contract under the Workers’ Statute are present.

Legal and economic consequences

This can generate labor and tax disputes. The relationship may be declared as employment, entailing recognition of seniority, application of the corresponding collective agreement, and potential claims for unfair dismissal.

The Tax Agency may also require the company to pay unpaid personal income tax (IRPF) with interest and applicable penalties.

Our solution

Our labor team reviews each contract and the actual working conditions to ensure compliance with the law, minimizing the risk of costly regularizations by the Labor Inspectorate or the Tax Agency.

2️⃣ Failure to Update Salaries and Tax Withholdings

Salary conditions and associated tax obligations are not static. New collective agreements, changes to the Minimum Interprofessional Wage, or changes in an employee’s personal circumstances (affecting IRPF withholding rates) require constant review.

Legal and economic consequences

Paying salaries below the stipulated collective agreement constitutes a serious violation and may trigger claims by employees. Failing to apply the correct IRPF withholding makes the company directly liable to the Tax Agency for unpaid amounts.

Our solution

At Adlanter, we continuously monitor regulations and collective agreements applicable to your sector. We ensure payroll reflects the correct salary and updated IRPF withholdings, guaranteeing full compliance and avoiding sanctions.

 

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3️⃣ Poor Management of Benefits and Allowances

Concepts such as training plans, per diems, travel expenses, or performance-based bonuses have specific tax and social security treatment. Poor documentation or accounting can result in items considered deductible or exempt being reclassified as taxable salary subject to contributions.

Legal and economic consequences

• Loss of deductions: Improper documentation may lead to denial of corporate tax deductions.

• Regularization of contributions and withholdings: If the Labor Inspectorate classifies a benefit as disguised salary, it will require social security contributions and IRPF withholding, plus surcharges and penalties.

Our solution

Our integrated labor and tax service ensures that all benefits and allowances are properly documented and accounted for. We advise on optimizing corporate and employee tax burdens while significantly reducing risk during inspections.

How Adlanter Can Help

An expert labor service not only prevents employee conflicts but also protects your company from costly tax errors. Our integrated approach linking accounting and labor ensures legal compliance, cost optimization, and risk minimization. For more information, contact our professionals.