Payroll in Mexico is complex

It is no news, the payroll in Mexico, in addition to the labor laws are very complicated. In fact, they are among the most complex in the world.

This makes it a complex task for both domestic and foreign companies, as there are factors such as:

• Misunderstanding and constant changes of the law
• Tax complexity
• Intervention of authorities such as SAT and IMSS

And others, which we will see below.

Why is payroll so complex in Mexico?

We have already touched on three very important points ranging from the constant changes in tax laws and the misunderstanding of these, to the intervention of different authorities such as the Tax Administration Service (SAT) and the Mexican Social Security Institute (IMSS).

But we can list other factors that make payroll processes complicated, such as:

• The numerous responsibilities between the employer and the workers.
• In Mexico, payroll is administered and established under three laws: Federal Labor Law (article 804, section II), Federal Tax Code (article 67) and Mexican Social Security Law (article 15).
• Complex structures in tax and social security calculations.
• Confusion in the calculation of perceptions and deductions.
• The variety of regulations and laws can have different interpretations, and this generates more misunderstandings and errors.
• That there are different payroll periodicities: weekly, biweekly, monthly, etc.
• The processes are usually executed through digital transactions directly on the authorities' portals.
• Changes in regulations according to geographical areas of Mexico. There are legislations and institutions that act on a regional, state and national basis.

Payroll planning is also a complicated task.

The main obstacles in payroll processes and planning are:

• Tools, Excel tables with different data and other documents that are not connected to each other are used.
• Processes between several institutions: CFDIs, IMSS, Infonavit, banks, etc.
• Not everyone involved in payroll processes is 100% immersed or fully knowledgeable in payroll, so they are often not up to date with regulations.

That's why at Zentric we aim to help you minimize payroll complexity, starting with the fact that we are the only ones that perform payroll calculations in real time, with our proprietary engine, Active Calculation®.

We are also the only ones to give you Zero Fines and Errors Guarantee, this means that if you get a fine from any authority, due to an error in our payroll system, we will pay it.

On the other hand, our calculation tables are always up to date and current in accordance with the law.

Besides, with Zentric there are no extra payments. You have multi-company, multi-brand, multi-user and multi-solutions included.

Of course, we also have the Payroll Maquila service with which we take care of all the payroll and accounting processes of your company. Yes, your payroll on autopilot!

We invite you to learn more about our services and how we can take the complexity out of your payroll processes.

Finally, remember that you can keep up to date with the world of payroll by subscribing to our blog-magazine.

See you next time!

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