Determining Third-Party Social Security Contributions

Third parties are other entities for which the company pays contribution, such as INCRA, SESC, SENAI, SEBRAE, and education allowance. These contributions are not intended to finance the benefits paid by Social Security, they are collected by INSS and passed over to the respective entities, reflecting directly upon the compensation paid to the employee. Entities for which a company is required to contribute are defined according to the activity developed by it. INSS classifies the company according to the code that identifies the activity developed by the establishment in relation to the Fundo de Previdência e Assistência Social (FPAS) (Pension Fund and Social Assistance). The FPAS defines percentages due to third parties in the GPS. The FPAS code represents the code of the company's activity for INSS classification purposes, which is used to define the percentage of the INSS due to third parties. You set up the code on the Additional Info - Brazil page. With the FPAS code of the establishment, company is informed of the entities for which it has to contribute and the respective rates of contribution.

If the company has a convention signed with third parties such as SESI, SENAI and EDUCATION ALLOWANCE, payment will be made separately from the GPS (Guia da Previdência Social) (Social Security Form).