Tax and labor impact of payroll outsourcing

Introduction

In the present essay presented, it is intended to make known some points that may remain a little hidden for those interested in the subject.

Various aspects will be known about Outsourcing or those well known and called as "payers", from the tax and labor sphere as they concern specific points, contracting company, contractor and employee.

Although today we know different approved points, such as that the contracting company cannot completely assign its collaborators to said contractor organization, as well as that they cannot disclaim responsibility, there is no substitute or supportive employer but responsible employer in its entirety.

You will know a little about the movement on the payroll maquila, in fact what are all those activities that are transferred to the contractor that should and should not be done, in what way each of the “substitute and solidarity” employers exercise responsibility

Brief benefits of working with Outsourcig will be reported, as well as some disadvantages that this transfer from one employer to another could have for the collaborators, but nevertheless, if governed by the law, those who would be the most valuable thing in a company should not be harmed in any way., its collaborators.

From an administrative point of view, what is convenient and what not for a company wishing to work together with a payor, from which area could both parties grow and see benefits.

And for the few knowledgeable about the subject, we will analyze what a payroll maquila is, what activities are carried out, what data is needed since not all companies have the same needs, what does the human resources department do and what is it? the difference between personnel administration and payroll management that although they are linked departments but with different activities.

Tax and labor impact of outsourcing payroll

Much is said about the little prestige that Outsourcing has, better known by the name of payers, although it is true, just as there is good, there is bad, just as there are ghost companies dedicated to scams, there are also Outsourcing that act as the law establishes. From a fiscal perspective, the point here is to what extent is it sustainable and defensible?

Derived from the reforms of the Federal Labor Law published on November 30, 2012, as well as those that occurred in 2009; On June 4 (Federal Tax Code and ISR), all those who receive the outsourcing service, have the need to review the labor, tax and social security aspects with their direct and indirect workers.

According to the modification in article 15-A, B, C of the labor reform, all Outsourcing… is the means by which an employer called a contractor provides services with his workers under his dependence in favor of a contractor…

Under this regime established in the article, all those operators that provide services as "payers" may not fully cover the activities that take place in the workplace of "the contractor".

The contracting company has the obligation to make sure at the time of contracting a contract that the contractor has all the legal documentation to fulfill obligations that derive from a relationship with the workers, as well as to verify that it has the applicable provisions on safety, health and environment at work.

All contracting parties have the power to request the contractor for payments corresponding to the payment of taxes, as the case may be, in a timely manner.

This issue is directed more towards regulating the hiring process by those companies that do so to define responsibility by transferring their workers in their entirety to the contracting companies, at present it is no longer possible, no "contracting" company must cede to all their collaborators to a "contractor" in this case the Outsourcing.

The human resources structure has two fundamental phases, the first one is in charge of recruiting, selecting, training and managing the information and the other one oriented to our topic of interest is the payroll maquila.

But what is payroll?

It is not more than a simple list made up of the employees of said company who will be economically remunerated for their services. This is an instrument that allows the payment of wages or salaries to workers as well as is responsible for providing accounting and statistical information to the institution.

So we have that the payroll maquila is related to the labor contract in relation to the services that are provided, this maquila must be designed to the size and model of the company since not all have the same needs, nor the same number of personnel, income and expenses.

What are the benefits of working with an Outsourcing?

Tax area, design safe strategies for payroll payment, justification of income and reduction of tax burdens as well as make payroll deductible.Work area, do not create direct relationship with collaborators and of course all legal benefits are respected more additional that the contractor offers. Administrative area, with a single payment multiple movements of payroll are avoided.

Companies that are governed in accordance with the provisions of tax and labor laws will not have any problems for their operation, it is about respecting all those benefits that the worker deserves by law and of course supporting themselves as a company. Neither of the two companies (contractor and contractor) can disclaim responsibility when responding to any economic or legal aspect as the case may be, since both respond as employers to any situation.

In addition, the contracting company can dedicate itself to other things, such as increasing its profitability, concentrating resources to develop new products and make innovations, coupled with this that would also reduce costs in the area of human resources such as recruitment, selection and training.

What would be the disadvantages of working with an Outsourcing?

The disloyalty of the employees towards the company they work for, since by not feeling part of it at any time they could leave their work without caring about the consequences. Derived from this, the staff turnover since precisely because of this feeling of isolation they leave and therefore in each resignation there is a hiring.

Before making the decision to hire an Outsourcing it is necessary to take into account:

Make sure that the operation of this is adequate and all its documentation is regulated so as not to fall into the hands of shell companies.

Identify the functions you will require from this.

According to the volume of collaborators and needs, consider times.

Confidentiality and loyalty towards the contracting company for the operation carried out.

Extensive review of legal documentation, tax payments, experience, time in the market.

… A good outsourcing contract can be so beneficial for the company that it will allow it to grow and develop to another level with its own resources.

conclusion

Thanks to outsourcing, operations and their costs can be adapted to the current needs of the market, it could be very beneficial for a company to have these services since, as we mentioned, their expenses for hiring personnel, human resources, decrease considerably. In addition to the fact that the company can react in time due to eventual changes in the workplace, routine jobs that may exist within the company could be eliminated since the activities would be carried out by outsourcing.

By having a good supplier, you can be sure that your business processes are carried out efficiently and with fast response times, you can save management problems since your supplier will be in charge of managing the people who carry out the activities, the needs and challenges posed by customers would be addressed.

Outsourcing services entails advantages and risks that must be analyzed when making the decision to work together with an Outsourcing.