Payroll taxes
Payroll is one of the main costs for companies, as it encompasses employee salaries and benefits. In addition, it is necessary to consider the taxes that affect the payroll, which must be paid by the company.
The main payroll taxes in Brazil are:
Social Security Contribution
The social security contribution is a tax intended to finance Social Security, which includes Social Security, Social Assistance and Health. The rate varies according to the company's tax regime and the amount of employees' salaries.
Income Tax Withheld at Source (IRRF)
The Withholding Income Tax is a tax levied on income paid to employees. The rate varies according to the employee's salary range and must be deducted from the gross salary before payment.
Union Contribution
The union contribution is a tax destined to the professional category union. The amount is deducted from employees' salaries and must be passed on to the corresponding union.
FGTS
The Severance Indemnity Fund is a social benefit that employers must deposit monthly into an account linked to the worker. The rate is 8% on the employee's gross salary.
INSS
The National Institute of Social Security is a tax intended to finance Social Security. The rate varies according to the employee's salary range and is deducted from the gross salary before payment.
In addition to the taxes mentioned above, it is important to note that the company is also responsible for collecting other charges related to the payroll, such as education allowance, contribution to the S System (Sesi, Senai, Sesc, Senac, etc.) and work accident insurance.
It is essential that companies comply with the legislation and correctly calculate and pay payroll taxes. Failure to comply with tax obligations may result in fines and penalties.
Therefore, it is recommended that companies rely on the help of specialized accounting professionals to ensure compliance with tax obligations and avoid future problems.
