Global Payroll for Brazil Business Processes

Global Payroll for Brazil supports the following business processes:

• 13th Salary

  Global Payroll for Brazil enables you to make 13th salary (Christmas bonus) payments to your payees. The system provides 13th salary parameters to define possible variations in 13th salary payment. The system also enables you to decide when to pay the 13th Salary first installment.

• Vacations

  Global Payroll for Brazil enables you to record and track vacations. You can generate vacation entitlements, create mass vacation takes, handle negative entitlement balances, track accrued vacation premiums for financial reporting, process vacation pay, and generate a vacation payslip.

• Average Salary

  Global Payroll for Brazil supports the addition of an allowance (based on the employee's average variable pay) to vacation, termination, 13th salary, or maternity pay for employees who receive variable compensation. To determine which employees are eligible for average salary calculations, you set up the eligibility rules, based on union rules and the Consolidated Labor Laws (CLT). Before calculating average salary, you can specify the period of time to consider and whether you want the average salary calculations to be adjusted for inflation.

• Termination Pay

  You can calculate the final check amount for terminated employees. The system enables you to define different termination legal versions and which earnings/deductions are considered in each version. You can also define which termination versions are linked with each job/action reason.

• Payslips

  Global Payroll for Brazil enables you to print payslips for weekly and monthly salaries, 13th salaries, and vacations. Because the format of payslips varies greatly from one company to another, an example of a payroll payslip and a vacation payslip are provided as a reference when creating your own payslips. You can define the criteria for printing payslips, so that they display exactly the information you require. You can prioritize the sort criteria and select the earnings, deductions, and calculation bases you want to include in the payslip.

• Banking

  Using this optional business process, you can pay employees using electronic transfers. The system enables you to set up different bank layouts for file transfers. After you run a payroll, Global Payroll for Brazil generates an EFT flat file that instructs the bank how to distribute the funds you send to them. The process also generates a printed report of payment details. Global Payroll for Brazil supports the Itaú bank reporting format.

• Social Security

  Global Payroll for Brazil provides variables, formulas, deductions, and other rules to calculate and track all aspects of social security contributions. Both employers and employees must make a monthly contribution to social security through the INSS using their own resources to finance the benefits payable to employees. Calculation is in accordance with Institute's table, which is published monthly by INSS. The system calculates how companies, third parties, and employees should contribute to social security.

• Income Tax

  Global Payroll for Brazil provides rules and elements to calculate and deduct withholding of income tax using the graduated tax rate for monthly payroll, 13th salary, and vacation payments. The system also tracks the following allowable deductions: alimony, qualifying dependents, social security contributions, pension and retirement contributions, and retirement and pension income. There is also a report that shows the details of the employee's dependent data used for calculating income tax.

• Absences

  You can use the system's predefined rules for processing absences. You may modify some of the absence rules and create new ones to reflect you organization's policies. You can also assess the impact of an absence using the Absence Forecasting process.

• Loans

  It is a common practice for Brazilian companies to grant personal loans or pay for assets and services on behalf of their employees. Global Payroll for Brazil enables you to maintain these loans, create payback schedules and modify the deduction of such values previously loaned to employees. You can adjust the loan by any rate and change the value of the deduction. On termination, the outstanding balance must be deducted. The loan may be deducted from normal payroll, vacation, 13th salary or termination.

• Provisions

  Global Payroll for Brazil provides elements to calculate provisions for vacations and 13th salary. After the system calculates the provisions, you can generate a provisions report.