Automatic Calculation Card Creation for Mexico

If your Payroll Product Usage is set to Oracle Fusion Payroll or Payroll Interface, then the Employee Tax Card is created automatically as part of the new hire process when you select a tax reporting unit.

It is important to understand these aspects of automatic calculation card creation:

• Component Groups and Components

• Associations and Association Details

• Automatically Created Calculation Card

Use the Calculation Cards task in the Payroll area to view and update the card as needed.

Automatic calculation card creation occurs only for employees; no card is created for pending workers or nonworkers. Other than the new hire flow, automatic card creation happens when:

• A pending worker is converted to an employee and there is a change in the payroll relationship

• An employee with an existing card gets a new term or assignment for a different payroll relationship

Component Groups and Calculation Components

The automatically created Employee Tax Card contains these calculation groups and components:

Component Groups	Calculation Components
Taxes	Employee Taxation
Taxes	Employee ISR Tax
Social Security	Employee Social Security
Social Security	SDI Calculation
Loans	INFONAVIT

Associations and Association Details

If a tax reporting unit (TRU) is selected in the Payroll Details section on the Hire an Employee: Employment Information page, an association to that TRU is added to the calculation card. Association details are also added, linking the calculation components to the assignment or employment terms created for the new hire.

The TRU association process not only links the card to the assignment or employment term, but it also creates the Mexico Taxation element entry. The element entry is created if the eligibility is defined and the employee meets the eligibility criteria.

Automatically Created Calculation Card

Once the card is created, you can view and update the card as needed. For example, you can

• Exempt the employee from ISR or employer state tax

• Enter an override for the calculation of ISR