Social Benefits are a plan made up of perks such as grocery vouchers, scholarships, daycare, cultural activities, etc., aimed at improving the worker’s quality of life.
This also has a great benefit for you as an employer, as some of these perks can be tax-free, but you must be careful as they have a limit and must be registered in your payroll. Below, we will explain what this limit is, when they are considered to be incorrectly registered, and the solution for a flawless payroll.
What is the limit of tax-exempt Social Benefits for a worker?
- For a worker earning more than 7 UMAs annually (221,978 MXN), the tax-exempt limit for ISR payment will be one annual UMA (31,711 MXN), not considering the savings fund and insurance premiums.
- If a worker earns less than 7 UMAs per year, their limit will be up to the sum of 7 annual UMAs for both their earnings from work and Social Benefits.
*Remember that since 2014, Social Benefits are tax-exempt for employees; as an employer, you can only deduct 47% or 53% according to the annual ratio you determine.
Are you correctly reflecting your Social Benefits in your payroll?
There are concepts that are generally mismanaged in the payroll or omitted in the payroll CFDI and thus sent to the SAT, for example:
- Savings fund (when there are errors in the caps and operation)
- Life and medical expense insurance premiums (when not stamped)
- Disability subsidies (when there are errors in the limit)
- Scholarships for the employee’s children (when there are errors in the limit or not reported)
- Funeral expense assistance (when there are errors in the limit or not reported)
- Marriage assistance (when there are errors in the limit or not reported)
- Grocery and restaurant vouchers (when there are errors in the limit or not reported)
Are your Social Benefits concepts correctly reported to the SAT?
Let’s start by understanding what these concepts are:
- Grocery vouchers
- Restaurant vouchers
- Savings fund
- Life insurance premiums
- Medical expense insurance premiums
- Disability subsidies
- Scholarships
- Funeral expense assistance
- Marriage assistance
- Analogous concepts to the above
Specialists have commented that 8 out of 10 companies do not register some of these concepts in their payroll and, as a result, are subject to fines from the SAT. Among the benefits commonly not registered are restaurant vouchers or assistance, as employers are unaware that this is a Social Benefit, and as a consequence, there may be unexecuted tax withholdings for the worker; the effect will be reflected in the worker’s next annual tax return, and you as the employer will be responsible for the uncollected and unpaid taxes to the SAT.
How can I know if my Social Benefits Plan is correct?
The first thing you need is to know the real situation of your company and how your payroll stands in fiscal and legal terms. For this, Grupo Sistemas offers you a specialized diagnosis with which we can tell you which benefits should and should not be registered in your payroll. Once you know them and allow us to process your payroll, we can correct the misregistered concepts in your social benefits plan.
Don’t let your company lose income due to SAT fines, and most importantly, maintain your reputation with your clients.
Remember to share this information if you found it useful and subscribe to our newsletter to receive our latest articles.
