Social Insurance contributions 

Purpose

The Social Insurance contributions are paid partly by the employee, partly by the company It is the responsibility of the employer to deduct the appropriate amounts for this purpose from their employees in each payroll accounting and to make the monthly payment no later than the 17th day of the following month.

In this process the activities and information required to calculate Social Insurance contributions are described.

Requirements

Process

The contribution can be summarized by the following formula:

Contribution = Contribution = Integrated Daily Wage x Contribution Days x % of Contribution

The Integrated Daily Wage is stored in the wage type /300, whereas the contribution days are stored in the wage types /310 - /316.

The percentage contributions are to be found in the table "Company and employee contributions" T7MX21, which can be maintained from the Implementation Guide: Payroll accounting ® Payroll: Mexico ® Social Insurance ® Social Insurance Contributions ® Maintain company and employee contributions.

The Social Insurance contribution calculation process is generated using the function MXSI, which is located in the subschema MXSI of the payroll schema MX00.

For each payroll period you must calculate the employee contribution and this must be deducted from his/her payments. Also, at the end of the month a report must be issued with monthly employer and employee contributions. These monthly contributions are broken down into calendar days.

You must consider that for workers on the minimum wage you must not deduct the IMSS quota, but that the employer must completely cover the corresponding quotas.

Result

During the payroll accounting process the contribution amount is determined for the worker’s Social Insurance. Later the remuneration statements are generated and the corresponding bank transfers made. It is also possible to perform other evaluations related to Social Insurance.

The wage types generated by this process are: