Personal Income Tax (IRPF) withholding with two payers: the second employer's criterion

The management of Personal Income Tax (IRPF) withholding when a worker receives income from two different employers is a matter that frequently generates doubts. The Dirección General de Tributos (DGT) has issued a criterion that delimits the obligations of each payer in these situations.

What the DGT has ruled

The query concerned whether it was correct for a second employer not to apply IRPF withholding. The DGT has determined that, in the presence of two different payers, each of them must independently determine the withholding applicable to the earnings they will pay to the worker.

In this sense, the second employer is only obligated to consider the earnings that they themselves pay. If these earnings do not exceed the quantitative limit established in article 81 of the Personal Income Tax Regulation (RIRPF), the entity is not required to apply withholding.

What this means for you

If you are a worker receiving salaries from two different sources during the same calendar year, you should know that the responsibility for calculating withholding falls on each company separately. This implies that:

• Each employer analyzes only the amount they pay to the employee.
• If the second payer provides an amount lower than the limit set by regulations, they will not apply withholding to the payslip.
• The obligation to integrate both incomes and adjust the final tax situation falls on the taxpayer when filing their tax return.

What you should do

It is fundamental to understand that the absence of withholding by the second payer does not imply an exemption from the tax, but rather a method of calculation based on current regulations. In this situation, it is necessary to assess your global tax position. It is recommended to analyze the impact that the sum of both incomes will have on your annual tax return to avoid discrepancies at the time of the tax settlement. Each case presents particularities that must be analyzed carefully.