Understanding Earnings in Mexico
This topic lists prerequisites and discusses:
Earnings types
Earnings and accumulators
Before you can track different earnings types, you must set up certain parameters for each earning type:
Define the SDI factor for Christmas bonuses and vacation premiums.
Define PTU (profit sharing).
Set up frequently used supporting element overrides (SOVRs).
Note: All of these steps are discussed in another topic.
The different earnings types in Mexico include base salary, bonuses, commissions, overtime, PTU (profit sharing), food coupons, vacation premiums, savings funds, seniority pay, and social benefits. You define earnings using the Earnings component.
This topic discusses how to integrate new earnings elements into Global Payroll for Mexico.
This information helps to ensure that any new element that you create fits into the existing logic and organization of Global Payroll for Mexico and is included in the correct calculations of such things as taxes and Social Security.
To ensure that the new earnings elements that you create are used correctly in other calculations, you must be able to identify the accumulators to which they should contribute, because the value of the accumulated earnings is critical to these other processes. The accumulator elements to which you will add your own elements are the same ones that Global Payroll for Mexico has created for the delivered earnings elements.
Important! You can add new earnings elements only to accumulators for which the ownership category is PS Delivered/Not Maintained. These accumulators are members of other, PeopleSoft maintained, accumulators on which Global Payroll for Mexico bases all of its formulas and calculations.
If you must define earnings that are partially nontaxable, create these three earnings elements:
One for the total amount of the earnings.
One for the taxable portion of the earnings.
One for the nontaxable portion of the earnings.
Make the earnings representing the total amount a member of the TOTAL PERCEPCION N accumulator, the earnings representing the taxable portion a member of the TOTAL PERC GRAVA accumulator, and the earnings representing the nontaxable portion a member of the TOTAL PERC EXENT N accumulator. Use the Earn/Dedn SOVRs MEX page to define the tax method that is used to calculate the earnings representing the taxable portion.
This table lists the most relevant accumulators that are delivered by Global Payroll for Mexico and that are used for federal tax purposes.
|
Accumulator |
Description |
|---|---|
|
BASE ISR |
Taxable base |
|
GRAVADO ANUAL |
Yearly taxable |
|
GRAVADO ANUAL N |
Yearly taxable not maintained |
|
GRAVADO MENSUAL |
Monthly taxable |
|
GRAVADO MENSUAL N |
Monthly taxable not maintained |
|
ISR RETENIDO |
Total ISR withheld |
|
NETO |
Net pay |
|
TOTAL DEDUCCIONES |
Total deductions |
|
TOTAL DEDUCCION N |
Total deductions not maintained |
|
TOTAL PERC EXENT |
Nontaxable total earnings |
|
TOTAL PERC EXENT N |
Nontaxable total earnings not maintained |
|
TOTAL PERC GRAVAD |
Taxable total earnings |
|
TOTAL PERC GRAVA N |
Taxable total earnings not maintained |
|
TOTAL PERCEPCIONES |
Gross pay |
|
TOTAL PERCEPCION N |
Gross pay not maintained |