In Mexico, employers have the responsibility of carrying out, month after month, a pay known as Payroll Tax (ISN), whose percentage varies depending on the state of the republic where they are located.
Also known as Tax on Expenditures for Remunerations for Personal Work Companies must pay it before the 17th of each month either online or by going to the office of the Secretary of Finance where it is constituted.
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Here we will tell you more details about this tax that has been talked about in recent days, due to its one percent increase approved by the Mexico City Congress.
What is the Payroll Tax (ISN)?
He Payroll Tax It is a payment that State asks employers for each employed person who is on their payroll and for whom a transaction such as the payment of salaries and other labor benefits.
Although your payment is local charactermeaning that each office treasury state is responsible for collection, failure to comply may result in sanctions and fines for employers.
The payment of said tax is applicable to all those natural or legal persons who are registered as owners or bosses of a company, without distinction.
What laws support the requirement of ISN for employers?
In the Mexico Cityhe Tax Code It is the document that supports the obligation to pay the Payroll Tax in the following articles:
Article 156
Any natural or legal person who has people working in their company in Mexico City must compulsorily comply with the payment of Payroll Tax regardless of the position of each employee.
Article 158
The Payroll Tax corresponds to 4% of the total amount of the payroll.
Regarding this article, the agreement between businessmen for the increase in which the tax went from 3 to 4 percent in CDMX, handles a preferential rate to small and medium businesses.
Las microenterprises they will continue to pay 3%; while those with 11 to 50 workers will pay only 3.5%.
Article 159
The Payroll Tax is paid no later than the 17th of each month, online or by going to the corresponding Ministry of Finance.
To other states of the Mexican Republicthe amount of the payment percentage of this tax varies depending on where it is applied and is specified in the local financial code.
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In what other states is this tax collected?
- Aguascalientes
- Baja California
- Baja California Sur
- Campeche
- Coahuila
- Colima
- Chiapas
- Chihuahua
- Durango
- Guerrero
- Guanajuato
- Hidalgo
- Jalisco
- State of Mexico
- Michoacan
- Morelos
- Nayarit
- Nuevo Leon
- Oaxaca
- Puebla
- Queretaro
- Quintana Roo
- San Luis Potosi
- Sinaloa
- Sonora
- Tabasco
- Tamaulipas
- Tlaxcala
- Veracruz
- Yucatan
- Zacatecas
What concepts does the Payroll Tax cover for employers?
In the Payroll Tax there is various concepts that employers must include in their declaration, in addition to the payroll:
- Vacation bonuses
- Aguinaldo
- Compensations
- Commissions
- Seniority premiums
- Bonuses
- Overtime
