Calculating Social Security (INSS) Payments

Deduction INSS SAL CON (INSS - Salary for Contribution) uses an amount calculation rule, where the amount is determined by formula IN FM SAL CONTR. Formula IN FM SAL CONTR (INSS Salary for Contrib. Calc) calculates the INSS salary contributions as the minimum of variable IN VR LIM INSS (legal limit for INSS) and accumulator INSS BASE TOTAL (Social Security Accumulator).

Deduction INSS SAL CON (INSS - Salary for Contribution) is a "dummy" deduction, created to keep this amount and also for demonstration.

The INSS BASE TOTAL accumulator contains all the employee earnings that contribute towards INSS.

The base calculation amount (accumulator) is compared to the (legal) limit amount for contribution and is used as the contribution amount if the base is less than or equal to the limit.

If the INSS BASE TOTAL accumulator is less than the limit, in variable IN VR LIM INSS, then accumulator INSS BASE TOTAL ⇒ deduction INSS SAL CON. If accumulator INSS BASE TOTAL is greater than the limit in variable IN VR LIM INSS, then IN VR LIM INSS ⇒ deduction INSS SAL CON.

Deduction INSS uses a Base × Percent Calculation Rule where the Base is determined by deduction INSS SAL CON (INSS - Salary for Contribution) and the percentage is determined by variable IN VR % INSS CPMF (Percentage - INSS/CPMF) in bracket INBR% INSS . The deduction adds to the TOTAL DESCONTOS N (Deductions Total Not Maintained) accumulator.

CPMF has expired, so the system defines the same percentage for the bracket result and for the IN VR PCT INS CPMF variable, used to calculate the INSS deduction.

Deduction INSS-CALC IR (INSS for Income Tax) uses a Base × Percent Calculation Rule where the Base is determined by deduction INSS SAL CON (INSS - Salary for Contribution) and the percentage is determined by bracket IN BR % INSS (INSS Table). The deduction contributes to the IR DEDUÇÕES (Income Tax Deductions) accumulator and corresponds to the INSS amount calculated by using the normal legal percentage.

This is a "dummy" deduction and the amount is deductible for Income Tax and is used for legal reports.

All of the deductions—IN GPS APO15 (SS – Retirement, 15 Years), IN GPS APO20 (SS – Retirement, 20 Years) and IN GPS APO25 (SS- Retirement, 25 Years)—use a Base × Percent Calculation Rule where the Base is determined by accumulator INSS BASE TOTAL and the percentage is determined by the related variables, respectively IN VR SAT % 15, IN VR SAT % 20 and IN VR SAT % 25.

The deductions also use the related Generation Controls—IN GC VERIF APO 15, GC VERIF APO 20, and GC VERIF APO 25, respectively.

According to the SEFIP Risk Level value on the Payee Parameters page, one of these three dummy deductions should be calculated. If the value is Default, the default value can be found on the Position/Jobcode Parms BRA page. These default values can de defined per position, per location and associated job code, per location, or per job code. You build the rules that define how the system should handle these values, in case of different options for location and job.