Global Payroll for Mexico Business Processes
Global Payroll for Mexico supports these business processes:
Earnings.
Global Payroll for Mexico enables you to define and process different types of earnings, including base salary, bonuses, commissions, overtime, profit sharing (PTU), food coupons, vacation premiums, savings funds, and seniority pay. You can also determine the taxable and nontaxable portion of each earning and deduction, such as for overtime, vacation premium, Sunday premium, savings fund, and Christmas bonus.
Christmas bonus.
You can calculate the Christmas bonus, (Aguinaldo), that is given to employees. Bonus amounts are based on the length of service and salary and are prorated according to worked days during the year.
See Defining Parameters for Christmas Bonuses and Vacation Premiums.
Average salary.
Global Payroll for Mexico calculates the average salary based on previous balances or periods. The result of this can be used as a base calculation for earnings and deductions.
Profit sharing (PTU).
You can calculate amounts due to employees as a result of profit sharing. Profit sharing payments are based on two parts: the employee's salary and the worked days from the profit generating year. You can define the profit sharing (PTU) parameters, such as the amount to share, maximum salary, and number of days for temporary employees to be considered into the process. You can generate four different reports for the PTU, including Profit Sharing Project, Eligible Employees, Non-Eligible Employees, and Unpaid Employees.
Overtime.
You can define the maximum number of double hours per day, the maximum number of occurrences by week, or the maximum number of double hours per week. You can create an annual overtime calendar. You can also record daily and weekly overtime hours for employees, including overtime hours, days off worked hours, and holiday hours. You can generate two overtime reports: one with detail and one without detail.
Deductions.
Global Payroll for Mexico enables you to define and process many different types of deductions for Mexico including before tax, after tax, and nontaxable deductions. Examples of deductions include union fees, parking dues, absences, personal loans, and deductions based on seniority. You can also set up and track provisions, which are accrued expenses, for vacations, vacation premiums, Christmas bonuses, and IMSS (social security) quotas.
Social security.
Global Payroll for Mexico enables you to calculate and process different aspects of social security, including IMSS (social security), SAR (retirement), and INFONAVIT (housing). You can calculate IMSS quotas for employers and employees and the fixed, variable, and hourly integrated daily salary (SDI). You can generate several social security reports and interfaces, including the SUA Payee Load interface, SUA Transactions interface, IMSS Hire notification, IMSS Termination notification, IMSS Salary Modification notification, Variability report, Work Risk Disabilities report, and the Base Over Cap report.
Federal and state taxes.
You can define and process federal and state taxes. Examples of federal taxes that you can process include the Monthly tax (Art. 113, 114, and 115), Annual tax (Art. 177, 178, and 116), Termination taxes (Art. 112), and other special tax calculation methods, such as RISR 86 and Multiple Months earnings (Art. 91). You can also define which earnings and deductions are eligible for the state tax base according to each state's laws, including those for the most complex state taxes, such as Ciudad Juárez (Chihuahua), Hidalgo, Guerrero, and Chihuahua.
Annual adjustment.
Global Payroll for Mexico enables you to process year-end calculation of taxes and determine whether the company withheld the correct amount of taxes during the monthly process. Excess withholding can be used to offset withholding for December and the following months. However, the difference can be discounted in a single deduction or multiple deductions, depending on parameters that are provided.
Subsidy factor.
You can calculate the subsidy proportion of taxes that will apply to employees in the following calendar year. You can set up subsidy factor parameters for your company, calculate the subsidy factor, and generate a Subsidy Factor report. Additionally, a separate process exists that calculates the subsidy factor, which the user enters in the Company table. Payroll then generates federal taxes based on this subsidy factor.
Absences.
You can track and define different types of absences, including maternity leave, general illness, work risk, work related illness, and in transit work risk. You can create rules for other types of absences, such as for paid-permitted and unpaid-permitted, overlapping absences (such as illness during vacation), subsidy rules, and mass absences. You can also generate an absence report and a Risk Factor report, which lists the employees who were on disability due to work-related illnesses or accidents during the year.
Vacations.
Global Payroll for Mexico enables you to record and track vacations. You can generate vacation entitlements, create mass vacation takes, handle negative entitlement balances, track accrued vacation premiums for financial reporting, process vacation pay, and generate a vacation report with or without employee detail.
Termination pay.
You can calculate the final check amount for terminated employees. The system enables you to define different termination versions and which earnings and deductions are considered in each version. You can also define which termination versions are linked with each Job/Action reason. Global Payroll for Mexico provides two sample letters for the termination and layoff process.
Garnishments.
Global Payroll for Mexico enables you to define and process garnishments. This includes defining the recipient information and handling the most complex requirements, such as multiple garnishments by an employee with different rules and priorities. Global Payroll for Mexico provides the five most common types of garnishment rules, including fixed amount, net pay percentage, total earnings minus tax percentage, total earnings percentage, and specific earnings minus corresponding tax percentage.
See Garnishment Types.
Results adjustments and reversals.
Global Payroll for Mexico enables you to identify an employee whose check is going to be reversed for a particular calendar and adjust or reverse a check that was already paid to the employee.
Gross up earnings.
Global Payroll for Mexico provides two earnings elements that are used for paying a net amount to payees. Starting from the net amount, the system determines the gross amount to process so that after tax deductions have been made, the required net amount remains.
Payslips.
You can generate payslips using Global Payroll for Mexico. You can specify the printing order, which earnings and deductions should be printed, and a range of employees to generate their payslips. Sometimes, defining the earnings and deductions that you want excluded on the payslip is easier than defining all the earnings and deductions that you want included. If this is the case, you can define your earnings and deductions this way. Global Payroll for Mexico gives you the choice to set up payslips in the way that works best for your business processes. If you purchased PeopleSoft ePay, you can have employees view their payslips online.
Banking.
You can define source bank and payee bank information. You can run the banking process and specify payment instructions to the bank. The system generates flat files for the top five Mexican banks: Banamex, BBVA Bancomer, Banorte, HSBC, and Scotiabank.