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Module 222 min2248 wordsFree — no account

Ending a contract, freelancers' invoices and paying in with modelo 111

The module’s worked examples, then cases to attempt before revealing their solution · 3 sections · 350 words · 4 min

Worked example

An objective dismissal after three years and four months

A shop assistant on a daily wage of €50 is dismissed on objective grounds after three years and four months of service. Forty months are three and a third years; at twenty days per year they add up to 66.67 days' pay. The compensation is €3,333.33, far below the ceiling of twelve months' pay.

Worked example

The accounting firm's invoice

The accounting firm bills €1,000 of fees plus 21 % VAT, €210. The 15 % withholding comes to €150. The bakery pays the firm 1,000 + 210 − 150 = €1,060 and will pay the €150 withheld to the Tax Agency with that quarter's modelo 111.

Practical case

The bakery's third quarter

Between July and September 2026, Lucía's company pays Diego three monthly salaries of €2,500 with 16.42 % withholding. It also pays €1,000 of fees to its accounting firm, run by an individual adviser, and €800 to a translator who started her activity this year, had not practised before and said so in writing. On 15 June it handed a shop assistant a letter of objective dismissal on economic grounds, stating that it could not make the compensation available; after fifteen days' notice her contract ended on 30 June, her wages were paid in June, and on 1 July it pays her the statutory compensation of €3,333.33. What goes into boxes 01 to 03, 07 to 09 and 28, and by when can the company pay?

Hint: Separate employment income from professional income and ask yourself whether statutory severance pay is subject to withholding.

Show the solution

Boxes 01 to 03: one recipient, Diego; 3 × 2,500 = €7,500 paid; 3 × 410.50 = €1,231.50 withheld. The statutory compensation is exempt (article 7 e) of the IRPF Law), carries no withholding and stays out of those boxes. Boxes 07 to 09: two recipients; 1,000 + 800 = €1,800; €150 at 15 % plus €56 at 7 %, €206. Box 28: 1,231.50 + 206 = €1,437.50. Deadline: from 1 to 20 October 2026.

Answer: 01-03: 1, €7,500 and €1,231.50; 07-09: 2, €1,800 and €206; box 28: €1,437.50, by 20 October

Read in Spanish

Educational content, current with the sources cited. It does not replace advice tailored to your situation. These courses are neither certifying nor CPF-eligible: they prepare for no certification registered with the French RNCP or specific register.