Hi everyone!
This is Augusto from TCF Mexico.
After contracting a foreing employee which are the benefits tax regarding the employers’ obligations (social security and related benefits) .
The employer’s obligations, according to the Mexican Federal Labour Law, Mexican Social Security Law and Safety and Hygiene regulation, include:
- complying with labour and social security legislation;
- executing the employment agreement in writing;
- paying the corresponding salary (in a weekly basis to hourly personnel and biweekly to salaried employees);
- retaining the corresponding tax and social security contribution from the salary of the personnel;
- providing to the personnel hired with the required work tools and security equipment (if is applicable) to render services;
- granting the minimum benefits stated by the Labour Law;
- registering as employer before the Mexican Social Security Institute (IMSS);
- affiliating employees to the IMSS five days after their hiring;
- retaining and pay social security, housing and retirement contributions;
- providing training to the personnel; and
- Participating in the safety and hygiene commissions in order to reduce the exposure of the personnel and work centre visitors to suffer accidents.
Any social security and related benefits granted to the employees deriving from the services rendered should be tax deductible, although some social or welfare benefits are tax deductible only in some percentage of their cost.
