Accounting procedure system in a Venezuelan company

1. Introduction

Systems make a company manage its operations effectively; The company that helped us with our research is Calzados Deri CA, a national footwear company that has a Production, Sales, Billing and Collection department where each area is managed by capable people and governed by regulations and policies.

The history of this company is disclosed, its objectives and vision for a future as the company is structured and how the systems of application of salary withholdings are managed.

The retentions of the Housing Policy Law that was approved on September 14, 1989 with the support of the private sector; the law seeks to generate low-cost housing with adequate payment conditions; and another of the retentions is the Forced Unemployment Insurance this law was put into operation in December 1989 in which the coverage was expanded with regard to the benefits in money to workers of course that these laws affect or imply a series of standards such as auditing and generally accepted accounting principles that are by which the accountant is governed and will be developed throughout the work.

systems-of-accounting-procedures

1. Information gathering (First phase)

The organization

Company description:

The commercial company "Calzados Deri C. A", was registered on March 22, 1965 in the commercial register, under No. 73, volume 13-A where Mr. Emilio di Marco is listed as President and Mr. Giuseppe Panza.

The capital stock of the company is (30,000,000) thirty million bolivars and through the issuance of one thousand four hundred (1,400) shares.

On March 12, 1991, the shares increased; leaving the president with (1,015) one thousand and fifteen shares and the Vice-president with (585) five hundred and eighty-five shares, giving a total of 1600 shares.

The capital stock was increased with the issuance of 1,400 new shares with a nominal value of 10,000 bolivars each, obtaining a total of 14,000,000; which were subscribed and paid in the following way:

The President subscribed 890 shares that are equivalent to 8,900,000 bolivars, of which 8,525,741.08 were canceled by means of the payment of credit that he has in his favor in the company and the rest in cash equivalent to 374,258.92 bolivars.

The Vice-president subscribed 510 shares that are equivalent to 5,100,000 bolivars, paying with credits that he has in his favor in the company 4,884,410.35 bolivars and the rest was paid in cash that would be 215,589.65 bolivars.

At the end of the financial year, the corresponding sections of 5% will be made to increase the legal reserve until it reaches 10% of the Capital Stock and 5% will be used to form and increase a reserve to cover the value of the extensions until reaching a 20% of the Company's Capital Stock.

Historical Review of the Company to work:

The place where this project will be developed is called: Calzados Deri CA; which is a manufacturing company that continues with its operations for 37 years, interrupted, located in the Caracas area and created by a partnership between Mr. Emilio di Marco and Mr. Giuseppe Panza.

After several years the Vice-president sold his shares to the President

of the company remaining as sole owner Mr. Emilio di Marco

As time passes, the merchandise has varied according to market demands, but always maintaining the same standard of work, materials and raw materials, the information was provided by the Executive Secretary Vivian Rodríguez.

The mission:

Objectives pursued by the Company:

The purpose of the Company is the manufacture, preparation, purchase and sale of Footwear in general; as well as the import, export, distribution and industrialization of everything related to the Footwear industry.

The vision:

Both the owners and the employees of this company and that of any other company seek progress and improvements in all the activities that are carried out; How to establish branches, offices, agencies, plants or other dependencies, in any other place in the Republic of Venezuela or abroad according to the interests of society to grow and develop a better work system to consolidate a large company with solid foundations May it have a great future despite the ups and downs of the national economy which affected these last years, lowering the productivity of the company and the entire footwear industry, causing many companies to close, however this company continues its operations.

System tools:

Information on technical aspects was provided by those in charge of maintaining and updating the systems and programs used by the company "Peña & Sistemas".

Types of computers: In the Administrative part there are three; Pentium 4 of which three of them are 1.2 yega hertz and one with ABA modems and broadband Internet. In the Billing department the computer is 586 and the deposit department is 486.

The types of Networks: There are DCP IP star-type protocol networks and suctured cabling and network The Software: Uses the WINDOWS 98 operating system and MIX NET administrative software.

The Hardware: Regarding the type of hardware this company varies a lot and they do not have a standard; one of those used is MCT.

Functional area

Background

In 1936, the Labor Law was promulgated, which provided legal norms for the operation of the National Labor Office. In August of the same year, by Executive Decree the services of the aforementioned Office were organized, one of which, Service "D" was motivated by "SOCIAL SECURITY".

Once the interest in social security was raised in the country, the steps to create the SOCIAL SECURITY began as a public institution.

07-24-1940 The National Government promulgates the Law that creates the Central Institute of Social Security.

02-19-1944 the General Regulation of the Mandatory Social Security Law was created.

1966 the new Social Security Law is enacted, completely reformed.

It is from 1967 when the 1966 Law begins to be effectively applied. In the new Law of the Venezuelan Institute of Social Security, the Maternity, Work Accident and Occupational Disease insurance is merged into the medical assistance insurance; The benefits are expanded, in addition to comprehensive medical assistance, long-term benefits (pensions) are established for concepts of disability, partial disability, old age and survivors, marriage allowances and funeral assistance.

December 1989 the Forced Unemployment Insurance is put into operation, through which coverage is extended, with regard to cash benefits, to workers and their families.

04 - 24 - 1991 the Social Security Regulation is modified to the Contingency of Forced Unemployment, expanding the coverage and increasing the percentage of the benefit and the contribution.

1993 the Regulation of the Social Security of Forced Unemployment is modified again, the coverage is extended and the benefit is regulated; Likewise, adjustments were made in the current legal framework, to allow the affiliation of Cultural and Artisan Workers.

21 - 10 - 1998 the Decree is issued with the rank and force of Law that regulates the Sub-system of Forced Unemployment and Professional Training, of compulsory affiliation and development in the terms established in the Law of the Comprehensive Social Security System, of the principles, rights and obligations of the entities that intervene in the management, regulation, financing, supervision, intervention and use of the services and economic benefits of the Sub-system, whose purpose is to temporarily protect the contingency of unemployment and training for labor reintegration.

Forced unemployment insurance:

The forced unemployment insurance is a limited and temporary support that is provided to the unemployed worker in order to mitigate the negative impact of this unemployment situation. The beneficiaries are those workers, workers and employees of the public or private sector who under any circumstances have been dismissed and are subject to the compulsory social security regime.

The Forced Unemployment consists of:

An indemnity in money equivalent to 60% of the average salary contributed to social security, during the last fifty (50) weeks.

Said amount will be paid for monthly payments due, during a period of eighteen (18) weeks and twenty-six (26) weeks in case of receiving a training course and training through INCE.

Orientation to the unemployed worker for his subsequent reincorporation to the labor market.

A transport voucher of 200 bolivars.

To benefit from forced unemployment, when a worker is laid off, he must go to the employment agency closest to his home, in order to process a new job. Additionally, you must process the Forced Unemployment insurance benefit within (30) days after your dismissal at the insurance office in your local office, presenting the following documentation:

Original 2 copies of:

• Employee retirement participation Liquidation of Social Benefits Identity Card.

Original and 1 copy of:

• Dismissal letter Declaration of Relatives Proof of registration in the National Employment service.

They are exempt from the Forced Unemployment Insurance:

• Workers who resign from their jobs Pensioned for old age, invalids or retired Insured under the Optional Continuation regime Domestic, temporary, occasional or occasional workers The worker loses the right to the insurance of forced unemployment when the period of benefits of (18) eighteen weeks for compensation in money; when obtaining a job; before the refusal to get into work; if falsehood is found in the data provided; due to the death of the beneficiary and the provision of military service. The right to insurance is recovered if the worker does not enjoy the entire benefit, and may obtain the pending assignments if he has another layoff before (18) months from the previous dismissal. Having enjoyed the full right,You must wait (18) months to obtain another benefit again and have contributed fifty-two (52) additional weeks to the forced unemployment insurance.

Legal framework:

The decree with the rank and force of law to reform Decree No. 2,963 dated October 21, 1998 that regulates the subsystem of forced unemployment and professional training; which is renamed decree with the rank and force of law that regulates the system of forced unemployment and job training.

General Norms:

Chapter: Objective and subjective scope of application:

Article 1,2,3,4,5,6.

Regulates the system of forced unemployment and Labor training as one of those that make up the social security system; The purpose of which is to temporarily protect the affiliate from this decree and guarantee the necessary mechanisms to facilitate their reintegration into the labor market.

The following will be covered by this decree: workers at the service of companies, entities, or establishments of the public or private sector that provide their services under a dependency relationship for a specific, indeterminate time or for a specific work; The Apprentices; domestic workers; home; athletes and natural workers; They will be covered as long as they join the social security information and registration service.

The entities that comprise it are:

• The National Social Security Council, The Ministry of Labor, The Superintendency of Pensions and Forced Unemployment, The Venezuelan Institute of Social Security, Employment Agencies, Training Organizations, Workers and Affiliated Employees.

Chapter: Benefits and conditions for the Acquisition of the Right:

Article: 7,8,9.

The system of forced unemployment will grant the affiliate the following benefits:

The temporary cash benefit for up to five months, equivalent to (60%) sixty percent of the amount resulting from averaging the normal monthly salary used to calculate contributions during the last twelve months.

The causes not attributable to the worker will include:

• The termination of the fixed-time employment contract, in these cases those who have contributed a minimum of twelve months within the 3 years immediately prior to the occurrence of the contingency will be entitled to the benefit. The death, retirement or disability of the employer and the replacement of employer Bankruptcy, industrial reconversion and other processes that lead to the reduction of personnel The reduction of officials or employees, provided that it is generated by financial limitations and budget readjustments.

Chapter: Mechanism to access the Features:

Article: 10,11,12,13,14.

Once the employment relationship has ended, the employer within the following 5 business days must notify the Social Security Information and Registration Service and deliver the worker a copy of the retirement form validated by said service, remaining on the worker's behalf. subsequent procedures to receive benefits.

The Unemployment certificate will be expanded and the employer will deliver it to the unemployed worker beneficiary of forced unemployment within 3 three business days following delivery of the retirement form.

The benefits are received within thirty (30) days following the delivery of the unemployment certificate.

Chapter: Cash Benefit:

Article: 15,161,17.

The unemployed member who presents the unemployment certificate will have the right to go to the financial entity indicated by the Venezuelan Institute of Social Security in order to make the payment of the corresponding monthly cash benefit effective.

Chapter: Job Training:

Article: 18,19,20,21,22,23,24.

Job training is a component of professional training aimed at improving and expanding the possibilities of reintegration of the unemployed worker in the labor market through learning methodologies that correspond to the knowledge, experiences and skills of the affiliates who demand the provision and to the occupational profile required by the labor market.

In the cases of reduction of personnel for economic or technological reasons, the employer is obliged to finance at least one (80%) of the cost of the training of the training entities authorized by the Ministry of Labor in the terms and conditions established this decree for affected workers.

The Ministry of Labor will ensure the existence of multiple training offers so that the affiliate can freely select the entity that offers the best training and reintegration opportunities.

Chapter: Labor Intermediation Service:

Article: 25,26,27.

The purpose of the labor intermediation service is to provide the affiliated worker with information and job orientation and job promotion services in order to ensure their reintegration into the labor market in the shortest possible time.

Chapter: Calculation Basis for Health Financing:

Article: 28

The calculation basis for the determination of the quota corresponding to the transfer of resources to the health system, will be made on the normal salary received by the member in the month immediately prior to the occurrence of the contingency of forced unemployment.

The Housing Policy Law (1989-1999) formalizes and the Housing Policy Law as an institution discourse sharpens the policy of public financing of housing. The law was approved on September 14, 1989, with the support of political organizations, the public sector, the private sector, and labor. The Law entered into force in January 1990.

This became the legal instrument that establishes housing solutions in the short, medium and long term, by the State, for the country. The objective of the Law is to attract public and private funds to be used for the production of new homes for lower-income and middle-income sectors. The Law establishes a contribution from the national executive and mandatory savings are created.

The LPH establishes, in its article 6, the housing policy of the State in the medium and long term; seeks to solve the population's living problem, especially the low-income; develop housing programs with equipment and provision of services and promote the resources and mechanisms necessary to finance housing programs at low costs (Congress of the Republic of Venezuela, 1989). That is, the Law seeks to generate low-cost housing with adequate payment conditions, so that its target population can access housing

In this law, the State in terms of financing is based on the economic criteria (purchasing power) of the loan applicant. In the economic man, the purchasing power is the key element to access public housing credit.

In this sense, the Venezuelan State establishes the criteria, conditions and requirements for financing. In other words, it establishes in the Housing Policy Law the requirements that the applicant for housing financing must meet in order to become a real beneficiary of the financing.

Background to the LPH

In 1958 the Mortgage Bank was born as an institution for the long-term financing of urban real estate. This Bank used the mortgage certificate as a long-term fund-raising title, which was attractive for savers and investors because it paid two (2) points more in interest than savings accounts. In addition, the banks had a stabilization fund, in which the State participated to send erratic fluctuations to the secondary market. The interest rates applied to its debtors fluctuate around 10% per year. I worked until 1989.

In Venezuela, as part of the economic package induced by the world monetary authorities, aimed at granting the country advantages in the process of negotiating its public external debt, the policy of liberation of the economy was applied, with it the State decreased by some and I eliminate in others their intervention to make way for the free market scheme. In this scheme, the Central Bank of Venezuela (BCV) announced in the Official Gazette the release of bank interest rates, leaving them to be free. play of supply and demand (Resolution No. 89-02-02, -89-02-03, -89-02-04).

The retroactivity of the variability of the rates affected the mortgaged operations that were in the process of canceling installments.

The Central Bank of Venezuela had to modify the decision by setting a minimum and a maximum for interest rates. The BCV's decision had been the subject of an annulment action before the Supreme Court of Justice, which was successful.

Housing Subsidy of the National Executive. To amortize the impact generated by the interest rate release measure, the National Executive promulgated Decree 123 on April 5, 1989, which established the housing subsidy to protect all people who acquired homes through long-term loans. term with variable interest rates and that could not bear the high market interest rates. The beneficiaries of the subsidy were the debtors of mortgage loans granted for the acquisition and construction of houses according to the regimes established by the national executive (from August 25, 1981 to December 31, 1983 and the mortgage loans granted until 02-17- 1989) (p.20). The interest rate applied was 15% per year.The subsidy was the difference between the preferential rate (15%) and the market rate.

characteristics

Available for the acquisition of a main home.

Financing term of up to 20 years, Equal and consecutive monthly installments.

Resources granted are from the Housing Mutual Fund. Approval in 15 days, counted from the date on which all the collections are delivered.

Guarantee: First degree mortgage on the property, guarantee and rescue fund.

Advantage

Preferential interest rate, set by the National Housing Council (CONAVI).

The term is fixed and you can select how long you want to cancel your loan.

It does not have pre-established annual fees.

The monthly installments are the same throughout the life of the loan. This allows that year after year, the fee represents a smaller portion of the client's income.

The client can make capital repayments whenever he wishes.

Functioning

The capital amortization system adapted for the cancellation of Credit is through the Linear Credit Payment mode.

Upon receiving a Linear Credit-Payment, the client cancels the amount of his loan in variable and consecutive monthly installments. With each installment, the entire monthly interest generated by your loan is paid and a portion of the capital is amortized. The latter was increased gradually, in each installment during the term of the loan.

The monthly fee remains fixed and only varies when the following cases occur:

Changes in the interest rate. In these cases, the fee decreases as the rate decreases and vice versa.

By making special repayments to the debit balance, generating a decrease in the monthly payment.

Beneficiaries of the law

Venezuelans.

Resident foreigners with permanence in Venezuela for more than 5 years without interruption.

Taxpayers of Housing Savings in associations and cooperatives registered with CONAVI.

Those who voluntarily take advantage of the collection rules of the Housing Savings Policy.

Active contributors of the Housing Savings for a period exceeding 12 months.

People who do not have a proven primary residence

Legal Bases

Constitution of the Bolivarian Republic of Venezuela Extraordinary Official Gazette No. 5,453 of March 24, 2000

Article 82

Everyone has the right to adequate, safe, comfortable, hygienic housing with essential basic services that constitute a habitat that humanizes family, neighborhood and community relationships. The progressive satisfaction of this right is an obligation shared between citizens and the State in all its areas.

The State will give priority to families and guarantee the means so that these, especially those with limited resources, can access social policies and credit for the construction, acquisition or expansion of housing.

Auditing standards that are affected.

the auditing standard regarding the organization and execution of work is affected, which is the second auditing standard approved and adopted by the collegiate members of the accounting profession in Venezuela; Specifically, the standard regarding the planning of the auditor's work is affected, which is the first division of the second auditing standard in which it is established:

The auditor's work must be properly planned, the audit work, like any professional work, cannot be performed without prior planning. Its defined purpose is: to provide the auditor with sufficient and competent elements of judgment for her opinion; It is carried out through audit procedures in accordance with the changing circumstances and conditions that arise in each of the businesses: the peculiar characteristics of the company whose financial statements are examined. Therefore, for a professional work to carry the prospect of being carried out with reasonable success, it must be planned in the sense of foreseeing, before undertaking each phase of the work, which audit procedures are going to be used,the extent and timing in which they will be used and the working papers on which their results will be recorded.

First of all, this previous paragraph should be noted that, for the auditor to carry out said planning and decide which audit procedures to use, it must be based on the so-called audit assertions, which are:

1. Registration: that all transactions are recorded correctly Valuation: that transactions are valued at fair value Cut: that all transactions are recorded in the period to which they correspond Integrity: that all transactions are recorded

It should also be noted that to examine accounts of a debtor nature, the registration and valuation assertions are used, while for those of a creditor nature, those of court and integrity are used, which indicates that for the present work the aforementioned assertions of court and integrity due to the fact that the accounts related to the Forced Unemployment Law are debtor in nature; All this analysis leads to determine that the audit procedures to be used are:

• Back-processing: which consists of reviewing one by one how the balances of the accounts to be examined are formed Documentation: which consists of validating the balances of the accounts to be examined using physical supports Analytical reviews: which consists of validating a balance through variables.

b) Mission of the Functional Area:

The Venezuelan Institute of Social Security is a public institution, whose reason for being is to provide Social Security protection to all its beneficiaries in the contingencies of maternity, old age, survival, illness, accidents, disability, death, retirement and unemployment or unemployment. forced, in a timely manner and with quality of excellence in the service provided, in accordance with the legal framework.

In other words, the mission of the Forced Unemployment Insurance is to provide the worker with financial assistance when they are unemployed, old-age pensioners or retirees; all those people who are affiliated with this insurance or with the application of the Forced Unemployment Law, accruing the corresponding amount that has been deducted during the periods worked from the Forced Unemployment Insurance and provide the necessary help for their reinsertion into the labor market. In the same way, the company also provides support to the worker by providing a percentage of 1.7% of the salary earned by each worker to the entities that make up this law.

The Housing Policy Law contains within its regulations that everyone has the right to housing with suitable conditions; Before the creation of this law, interest rates for the acquisition of homes and other financial activities were stable, but because the situation in the country has been deteriorating, a law has had to be created that provides people with facilities for acquisition of homes with more stable and comfortable payment methods for the worker and thus provide a better quality of life to the individual thus achieving greater effectiveness in their work performance.

1. Description of the processes of the functional area to be developed:

The main objective of support organizations such as Forced unemployment insurance and the housing policy law is to provide workers with support in the event of being unemployed and so that they can opt for a home; This is possible due to the fact that a percentage is deducted from the salary earned, which the company then sends to the corresponding institutions together with the contribution that the company makes.

A total of 51 people work within the company; Forty-three (43) of these make up the working staff, who are those who provide direct labor and who earn a salary paid weekly.

The other eight (8) people belong to the administrative staff and employees who receive a fortnightly salary; therefore, the company has two payroll but the same percentage is deducted from Compulsory Social Security (4%), Forced Unemployment Insurance (0.50%) and the Housing Policy Law (1%).

1. When hiring an employee, an income card or resume is made, which contains all the information regarding their personal data and position to perform in the company; and they fill out a form provided by the IVSS to register the worker. This is the form: 14 - 02 and at the time of retirement from the company, the form is filled out: 14 - 03, which is the worker's retirement participation. Each worker is identified with a code that is a number that represents him in the payroll. The worker's file is as follows:

Worker file:

• Code: is the assigned number (02, 03, 15, etc..) Identification: Surname: Date of Birth: Place: Country: Profession or Position: Date of entry: Own home S / n: Condition of the worker: Active. Payment method: (all in checks) Bank and account number: Promotion number: (if he has been promoted to a better position) Relegation number: (if he has been demoted from his position) Address: Names: Nationality National: Marital Status: Sex:Vehicle:

1. After having all the personal data, the following data is uploaded to the system where it is specified what is your salary and the hours that you have worked to make the payroll, regardless of whether it is a worker who charges weekly or biweekly:

• Current Position: Monthly Salary: Salary for receipt: (after deductions) Weekly salary Date of last increase: Special job: (any extra days of work you have done) Hours: Day: Night: Monthly Work: (most takes 30 hours) Saturday Hours: Sunday Hours: Fixed Travel Expenses:% of commission retention:% of ISLR retention:

1. The next step to perform is to fill out a detailed pre - payroll for each worker where it specifies: the corresponding deductions for SSO, SPF and LPH; Only 3 people in this company are deducted ISLR

The loans that the workers have requested are also specified and they are discounted, this subject is included in “other deductions”.

This pre-pay is made every week or biweekly since the salary data vary, either due to absence or loan requests. The payroll works with codes to differentiate each situation whether they are deductions, bonuses, absences, salaries, Example:

A01 Weekly Salary

A02 Biweekly Salary

A07 Sundays

A98 Other Assignments

D01 Absences

D02 SSO (4%)

D03 SPF (0.50%)

D04 LPH (1%)

D10 ISLR withholdings

D98 Other Deductions.

1. In the administrative area they are in charge of preparing the workers' payroll. The system is programmed to make the deductions automatically, the data is filled in depending on the salary that each worker receives.As for the calculation of the Forced Unemployment Insurance, the weekly base salary is determined and multiplied by 0.5% and by the amount of Monday that Regardless of the month, a relevant aspect is that the deduction has a limit, that is, five minimum wages is the maximum amount to make the corresponding deduction and for those people who earn a higher salary, the amount of these five minimum wages is taken as a basis.The policy law is easily calculated by taking one percent of the base salary.The Housing Policy Law and Compulsory Social Security are not only made to workers, although they are the only beneficiaries because companies contribute a greater portion of money, in the case of Forced Unemployment Insurance the company contributes 1.7% and the Housing policy law with 2%. The percentage is applied to the salary that each worker will earn weekly or biweekly. Then the company sends a check with the total amount of the LPH collected to the bank which is in charge of paying each worker their corresponding amount of money to the appropriate institutions and also happens with the SPF An example of the list of Housing Policy that the company makes monthly is as follows:in the case of the Forced Unemployment Insurance, the company contributes 1.7% and the Housing policy law with 2%. The percentage is applied to the salary that each worker will earn weekly or biweekly. Then the company sends a check with the total amount of the LPH collected to the bank which is in charge of paying each worker their corresponding amount of money to the appropriate institutions and also happens with the SPF An example of the list of Housing Policy that the company makes monthly is as follows:in the case of the Forced Unemployment Insurance, the company contributes 1.7% and the Housing policy law with 2%. The percentage is applied to the salary that each worker will earn weekly or biweekly. Then the company sends a check with the total amount of the LPH collected to the bank which is in charge of paying each worker their corresponding amount of money to the appropriate institutions and also happens with the SPF An example of the list of Housing Policy that the company makes monthly is as follows:collected from the bank which is in charge of paying each worker the corresponding amount of money to the appropriate institutions and the same happens with the SPF.An example of the list of Housing Policy that the company makes monthly is as follows:collected from the bank which is in charge of paying each worker the corresponding amount of money to the appropriate institutions and the same happens with the SPF.An example of the list of Housing Policy that the company makes monthly is as follows:

Code Surname and Name Worker Company Total

(1%) (2%) (3%)

1. System Requirements: This information could not be provided to us by the company.

1. Procedural Accounts Code:

The most used accounts in the accounting record of Forced Unemployment Insurance and the Housing Policy are the following and with their respective account codes:

Payroll expenses 6101

Forced unemployment insurance 610206

The Housing Policy Law 610207

Company contributions 140102

1. Scheme of Accounting Entries: The accounting records made by the Company involve the following accounts:

Payroll expenses XXX

Deductions XXX

Payroll XXX

The debtor account Payroll expense is the sum of deductions or withholdings plus the sum of the salary to be paid for all workers.

The deductions creditor account includes the total amount of the Mandatory Social Security, the Forced Unemployment Insurance, the Housing Policy Law, Income Tax and other deductions payable that are statutory.

The Payroll Account is the amount to be paid of all the wages of all the workers.

Payroll to Distribute XXX

Company Contributions XXX

Payroll XXX

The payroll account to be distributed is the sum of the contributions made by the company and the expenses of the payroll or what is the same as the salary of the workers.

In the same way that workers are deducted a certain amount from their salary to the mandatory withholdings stipulated by law, the company also contributes a percentage for each employee and is credited to the Company's Contribution account.

1. Company Manuals:

This company does not have manuals of any kind. The instructions for the new workers who enter the company about the performance of their work are given by the manager in the case of the Administrative staff and in the other areas the instructions are given by the person in charge of each department.

1. Forms: The forms that they could provide us with are those provided by the Ministry of Labor to companies so that each worker can be registered in the Forced Unemployment Insurance and Compulsory Social Security, these forms are attached below:

Form 14-100: Proof of the work done.

This form is a proof that corroborates the time and salary that the worker earned during the time he / she provided his services in the company; It is required by the Ministry of Labor at the time of providing the Forced Unemployment Insurance service or also to be given information on how much money you will receive for the time that you work.

Form 14-03: When the Worker stops rendering his Services.

It is used when a worker stops providing service in the company, they specify the reason for their retirement from work and the time they were providing their services. This form must be submitted within three business days following the date of your retirement.

Form 14-02: Worker Registration.

This form is the registration made by the worker once he is hired by the company and thus at the time of making the deductions they are validated and received by the responsible entities, for their subsequent accumulation.

1. Communication Channels: In the Administrative area of ​​this company it is the primary source of communication for the elaboration of the deductions and the salary to be paid.The person in charge of this work is Yesenia Plaza and communicates with the Administrative Manager who fully approves the job or informs you if there was any change in the payroll; to then prepare the payroll either weekly for the workers or biweekly for the employees of the Administrative level, applying their corresponding salary, subtracting if they have any absences or adding if I work overtime, etc. Later the final communication remains between the representative who delivers the envelope with the content of the salary and the worker who receives it.

The communication channels are used by the managers to report to the President and Vice President of the Company; of all the movements that have been made in the company in the Sales, Production and Billing departments.

conclusion

In order for all companies to be successful and obtain profits and last for a long time, they must be very well structured and have solid foundations in all the departments that comprise it, and the personnel of the company must be trained to solve problems.

The Company with a vision and mission of the business and with departments that are managed by personnel that have manuals for better effectiveness and have the supervision and control of the Manager and the highest hierarchical positions such as the President and Vice President. They also have a coding of accounts to identify them with a better resolution; in general they are structured with a base of systems that achieve their operation.

Regarding the unit of payroll of the employees, the corresponding deductions that are made are two entities that are the Housing Policy Law which allows workers, through the deduction that is made from their monthly salary of 1%, can have the option of having a main home financed over a period of 20 years, with fixed monthly installments as long as interest rates do not change since the installments also vary due to the increase or decrease in interest.

The other entity is the Compulsory Social Security that the worker contributes 0.5% of his salary monthly; And when the worker becomes unemployed, he resorts to this saving that he has been making, this compensation in money is equivalent to 60% of the average salary contributed to social security during the last 50 weeks.

For the Obligatory Social Security and the Housing Policy Law to help the worker at a time, the company where they provide their services must deliver the respective deductions that were made from their salaries to the corresponding institutions such as the Ministry of Labor, the Superintendence of Pensions and forced unemployment, the institute of social security, housing savings and cooperatives of CONAVI

Information analysis (second phase) (See PDF)

Download the original file