GPESP: Tax Update 2022 Garanted Net (SMI) Used in Calculation of Court Orders (Doc ID 2923295.1)

Last updated on JANUARY 30, 2023

Applies to:

Symptoms

A recent sentence has modified the approach followed by Tax Agency regarding SMI to be taking into account as guaranteed net. Now they specify that in the month of extra period the amount of SMI that should be computed is 2 times SMI.

This is the sentence: "Límites de inembargabilidad cuando se devengan pagas extraordinarias. Sentencia ADMINISTRATIVO Nº 1340/2022, Tribunal Supremo, Sala de lo Contencioso, Sección 3, Rec 585/2021 de 20 de Octubre de 2022"
source: https://www2.agenciatributaria.gob.es/wlpl/SREM-EMBA/CalcSdoEmb

Payroll for employees with court orders is calculated based on SMI ranges and ensure that the calculation follows the latest instructions provided by the Tax Agency regarding the calculation of the minimum guarantee.

Steps to replicate the issue:
  1. Navigate to Global Payroll and Absence Mgmnt > Payee Data > Garnishments/Court Orders: Add court order for an employee having all extra periods prorated
  2. Navigate to Global Payroll and Absence Mgmt > Absence and Payroll Processing > Calculate Payroll: Run Payroll

Changes

Cause

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