Calculating INSS

Deduction INSS (INSS) uses the Base × Percent calculation rule where the Base is determined by deduction INSS SAL CON (INSS - Salary for Contribution) and the Percent is determined by formula IN FM INSS ALIQ EF (INSS Effective Tax Rate).

Formula IN FM INSS ALIQ EF returns the actual tax rate that is used to calculate the INSS amounts. It uses the employee's salary contribution base to obtain the corresponding tax percentage value, accumulated INSS amount (from previous salary ranges), and INSS current step amount (the minimum amount of the current salary range) from bracket IN BR PCT INSS. First, it subtracts the INSS current step amount from the salary contribution base to get the taxable amount from the highest salary range, and multiplies this amount by the tax percentage to get the INSS amount to be paid for the highest salary range. Then, it calculates the actual tax rate by adding this INSS amount and the accumulated INSS amount from previous salary ranges, multiplying the subtotal by 100, and dividing it by the employee's salary contribution base.

Suppose that an employee’s salary for contribution is $3,600.00, and based on the INSS table listed in the Calculating INSS with IN BR PCT INSS Bracket Data section, the corresponding tax percentage, accumulated INSS amount, and INSS current step amount are 14%, $3134.40, and $297.75.

The actual tax rate is calculated as:

($3600 - $3134.40) * 14 / 100 = $65.184

($65.184+ $297.75) *100 / $3600

= 10.0815

Using the Base × Percent calculation rule, the INSS amount (or deduction) is calculated as:

$3600 * 10.0815% = $362.93

The deduction adds to the TOTAL DESCONTOS N (Deductions Total Not Maintained), PA INSS (INSS Base), INSS_VRPER (INSS), and INSS_VRMEN (INSS) accumulators.

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