Payroll management is an elementary fiscal process for all companies; however, in many cases, this activity becomes complicated when it comes to carrying it out. Therefore, here we present the main fiscal aspects that you have to consider for payroll.
Sometimes there are misconceptions regarding the deduction of payroll taxes, which is why it must be understood that it is only deductible in terms of Income Tax (ISR).
It must also be considered that, since 2014, there is a limit for deductions and it is equivalent to 53% of the number of payments for exempt income for workers.
On the other hand, there are specific requirements for the deduction and these are issue CFDI for each payment of salaries and, in case the fee exceeds MXN 2,000.00, it must be paid as indicated by the SAT, either by authorized electronic purses, cards credit/debit card or by electronic transfer.
In addition, to avoid problems with deductibility, it is necessary to consider: present the declarations promptly, issue stamped receipts, correctly establish the taxes, pay the social security and the workers correctly.
This term can be understood as the remuneration or expenses that the employer grants to benefit the workers and improve the quality of life. This is among the taxes that you can declare to deduct. At the same time, it is important to know that the ISR Law also establishes a limit for social security benefits. The main social welfare expenses are:
- Grocery vouchers, which must be delivered through electronic purses and can only be deductible by 47% or 53%
- The salary or salary, which you need to have CFDI and make payments by bank deposits or electronic transfers
- Student scholarships
- Medical expenses and exams
- Life insurances
Tax aspects of payroll
Other tax aspects that it is important to know and be clear about are:
- As mentioned above, the expenses derived from the employment relationship can be partially deducted.
- Social security contributions
- These benefits are part of the contribution base salary and part of the contributions corresponds to the employee while the other corresponds to the employer.
- Payroll tax
- There is a payroll tax that, for its calculation, considers the remunerations paid to workers.
In conclusion, payroll has a very direct impact on your company and your operations, which is why being clear about its implementation and the fact deducting all possible aspects will present a substantial benefit for your business.
As a worker, you have income for which tax is paid, such as:
- From the bonus, you receive up to 30 units of measurement and updating.
- From the vacation premium up to 15 units of measurement and update.
- From the distribution of profits that the company gives you up to 15 units of measurement and updating.
You have the right to deduct personal expenses, among others, the following:
- Medical, dental, hospital expenses, including professional psychology and nutrition services.
- Funeral expenses.
- Real and accrued interest on mortgage loans.
- Tuition fees.
You can prepare your annual declaration even when you are not required to do so to subtract your deductions and, if applicable, obtain a balance in your favor.
The employer does not withhold tax if you earn up to a minimum wage every month.