Lately we have been discussing all the fines you can receive from the authority.
But this time, we will talk about tax benefits for Mexican companies that support their workers in this "Back to School".
This is because school supplies may be deductible for income tax purposes.
What does the Income Tax Law say about this deduction?
Article 8 of the Income Tax Law defines social welfare benefits as:
"The set of disbursements made by employers in favor of their employees to satisfy contingencies or present or future needs, as well as to grant benefits in favor of said employees, tending to their physical, social, economic or cultural improvement, which allow them to improve their quality of life and that of their families".
What does the Federal Labor Law say about this?
This practice is entirely valid because number 110 of the Federal Labor Law allows the above-mentioned deductions to be made from workers' salaries when they incur debts with their employer, among other cases, for the purchase of articles.
The total amount of the debt must not exceed one month's salary and the number of discounts must be as agreed with the workers, which must not exceed 30% of the excess of the minimum salary.
However, if your company decides to grant this benefit, it must be granted in a general manner to all employees, in accordance with the provisions of Article 31, Section XII of the Income Tax Law.
Keep an eye out!
Don't forget that in order to implement this, you need to have the express written consent of the collaborators.
They must demonstrate compliance with the requirements established by the company in order to be eligible for this benefit.
It can certainly be a "win-win" for both companies and employees.
Were you aware of this issue, would you apply it in your company?
Let us know in the comments and don't forget to subscribe to our blog to stay up to date with the world of payroll.
