Understanding Reporting of Ongoing Transactions and Event Categories

After the initial data for participating companies is loaded and then transmitted to the eSocial environment successfully, eSocial is live. From now on, certain updates about companies and their employees in HCM need to be reported to the Brazilian federal government through eSocial. The government identifies a list of events that companies need to capture and report to the eSocial system when they occur. These events collect information about companies, employees, as well as transactions that are performed regarding payments to individuals, payroll and labor obligations, social security and other fiscal impacts, and must be submitted within the time-frame permitted by law. Depending on the nature of the events, some need to be reported to eSocial almost as soon as they occur, while others can be processed periodically in a batch.

Events are grouped into these high-level categories:

  1. Basic table events.

  2. Non-periodic events.

  3. Periodic events.

  4. Totaling events.

  5. Termination events.

Events are interdependent of one another, and there is a sequence in which they are launched by category, and within their own category. The sequence of events for each category is established in the Events Sequence by Category BRA component.

Important:

eSocial accepts only one single register for any given data entry for the same period (month and year) and company (represented by its sole headquarter establishment). In PeopleSoft, data rows are controlled by effective date (day, month and year). When a basic table code (for example, job code) has more than one row with the same month and year in their effective dates (for example, September 1st, 2016 and September 21st, 2016), the row with the most current effective date in the period will be reported to eSocial for that period if needed. Every time a new effective-dated row is entered in one of the basic tables in PeopleSoft, the system checks if the corresponding event for the same month and year period has already been sent. If so, instead of triggering a new event for the new effective-dated row, a change event is invoked to update the data on the eSocial environment.

Basic Table Events

Basic table events build the foundation of data that companies need to set up and maintain in the eSocial system. These events record basic table data (such as job codes and work shifts) and employer information (such as identification of employers, its establishments and construction work sites). They are included in the initial data loading process.

After eSocial goes live, changes made to basic table and employer data on HCM component transactions must be sent to eSocial environment no later than the 7th day of the month following the updates, or prior to the transmission of any event that requires the changed information for validation, whichever comes first.

To ensure the proper handling of periodic and non-periodic events from employers and payroll calculations going forward, it is important that the data that is loaded to the eSocial system be accurate at all times.

Refer to Global Payroll for Brazil eSocial Event Layouts for a list of system-delivered basic table events.

Non-Periodic Events

Non-periodic events, or labor events, are legal labor facts that can happen on any business day between an employer and its employees through HCM component transactions. Examples of non-periodic events include hiring, salary changes, accidents at work, absences and so on. These facts impact the granting of rights, as well as the fulfillment of labor, social security and tax obligations.

Refer to Global Payroll for Brazil eSocial Event Layouts for a list of system-delivered non-periodic events.

As these events occur and are confirmed, they need to be transmitted to the eSocial system shortly. For example:

  • Information related to hiring employees or contract workers without employment relationship has to be submitted by the end of the day immediately, prior to the commencement of service.

  • Information related to accidents at work has to be submitted on the next work day following the occurrence of the accident. In case of death, it needs to be reported immediately.

  • Information related to the rest of the labor events must be sent either by the seventh day of the following month after the change becomes effective, or before the submission of any periodic event (for example, payroll) that uses the updated labor information for validation, whichever comes first.

    Note:

    If the termination payment date by when an event needs to be submitted is a bank holiday, the work day immediately preceding this bank holiday becomes the new submission due date.

Periodic Events

Periodic events are legal labor facts that occur on a predefined schedule. Examples of periodic events include payments related to payroll, calculation of social security contributions and income taxes. Companies need to report earnings and deductions paid to their employees and non-employees through payroll, according to the predefined wage types codes. These codes indicate whether or not payments are taxable, or have impacts on averages for vacations, 13th salary and terminations, among others. They must also report compensation amounts regarding payroll exemption on each establishment to compose the INSS (Social Security Tax) calculation basis.

Since periodic events typically occur as batch processes in the background, they are captured for eSocial reporting through run control pages.

In general, periodic events need to be reported to eSocial by the 7th day of the month following their occurrences. Companies can generate tax payment forms to collect payments only after these events are submitted.

Note:

If the date by when an event needs to be submitted is a bank holiday, the work day immediately preceding this bank holiday becomes the new submission due date.

Refer to Global Payroll for Brazil eSocial Event Layouts for a list of system-delivered periodic events.

Totaling Events

Totaling events provide summaries of compensation-related calculations to companies after the submission of their employees’ compensation data to the Brazilian government. They are returned from the eSocial environment of the government, after events (such as S-1200, S-1210, S-1299, and S-2299) are received and processed successfully.

Refer to Global Payroll for Brazil eSocial Event Layouts for a list of system-delivered totaling events for eSocial, and how they are run to retrieve the information requested.

Termination Events

Termination events are a subset of non-periodic events. They are used to report information related to terminations, which can happen on any business day between employers and employees (or non-employees).

In general, termination-related information has to be submitted on the next work day following the termination date, if the termination is planned (for example, tendering of a work notice, or end of a fixed term contract).

In all other cases, termination information needs to be sent to the eSocial system no later than 10 calendar days following the termination date.

Note:

If the termination payment date by when an event needs to be submitted is a bank holiday, the work day immediately preceding this bank holiday becomes the new submission due date.

Refer to Global Payroll for Brazil eSocial Event Layouts for a list of system-delivered termination events.

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