Upper and Lower Limits

Global Payroll for Mexico calculates upper and lower limits as part of the gross-up process. These limits are the values between which earnings PIRAMIDADO + EXC PIRAMID falls. In each iteration of the gross-up, the earning EXC PIRAMID takes a value between the Lower Limit − PIRAMIDADO and the Upper Limit − PIRAMIDADO.

For example:

Suppose that you want to pay a PIRAMIDADO amount of 1,000.00.

The first time that limits are calculated, the upper and lower limits are:

• Upper Limit: 1,000 × 1.6 = 1,600.00

• Lower Limit: 1,000

Therefore, in the first iteration, the EXC PIRAMID values are between 0 and 600.

In each iteration, the gross amount varies, depending on the PIRAMIDADO and EXC PIRAMID values.