Enterable Values on the Employee Tax Card for Mexico

Use the predefined Employee Tax Card personal calculation card to define components to calculate and process taxes for Mexico. Aspects of the card include:

Component Groups and Calculation Components
Associations
Calculation Card Overrides

Some values entered on a calculation card override values defined in a calculation value definition. For example, you can override an employee's exemption rules for ISR, State Tax and Social Security.

These are the two component groups that Mexican statutory calculations are broadly categorized into:

Taxes
Social Security

Taxes Component Group

The Taxes component group includes the Employee ISR Tax calculation component.

Employee ISR Tax:

There may be situations where the rules for the calculation of ISR tax vary for an employee. To make a change to these rules:

Choose the Calculation Cards task and search for an employee.
In the search results, click Employee Tax Card.
Expand the Taxes region on the Employee Tax Card.
Select the pencil icon to edit the Employee ISR Tax component.
Enter the start date of the changes for When does this change start?
The values you can enter for Employee ISR Tax include:

Override Name	Description	Value Type	Value Example
Exclude From Annual Adjustments	Provides the option to exclude an employee from the annual tax adjustment process. The default value for this field is No. If you want to exclude the employee from the annual tax adjustment, select Yes.	String	No
ISR Severance Rule	Determines which Severance ISR tax calculation method to use. The default is Subject Earnings Greater Than or Equal to Monthly Salary. This means that the Severance tax calculation method is used if the Severance ISR Subject portion is greater than or equal to the Monthly Salary. If you select None, the severance ISR calculation method is used with no comparison and regardless of the severance amount. If you choose Total Earnings Greater Than or Equal to Monthly Salary, the severance tax calculation method is used if the total severance payment (subject plus exempt portions) is greater than or equal to the Monthly Salary.	String	Subject Earnings Greater Than or Equal to Monthly Salary
ISR Subsidy Adjustment on Regular Run Type	For each payroll run, the standard ISR calculation adjusts the amount of subsidy for employment to prevent exceeding the monthly cap. This adjustment compares the month-to-date (MTD) subject earnings balance with the prorated monthly subsidy for employment rates. This override determines if the ISR Subsidy for Employment is adjusted during a Regular payroll run type. Subsidy for employment is calculated (adjusted or not) based on the rates determined by the existing "ISR Subsidy Proration on Payroll Run Type" override. The default is Yes, whereby the subsidy for employment is adjusted based on the MTD ISR subject earnings balance. If you select No, the subsidy for employment is calculated with no adjustment considering the current processing pay period ISR subject earnings (Run balance).	String	Yes
ISR Subsidy Proration on Payroll Run Type	This override determines if the ISR Subsidy for Employment is calculated based on the periods in the month and on the proration of the monthly Subsidy for Employment rates. The Subsidy for Employment calculation basis will be the MTD ISR subject earnings balance in all scenarios except if the ISR Subsidy for employment Adjustment on Regular payroll run override is set to No. In this case, the basis will be the Run balance. The payroll run type(s) excluded by this value definition will use a Subsidy for Employment rates factor of one (no proration). This means that the full monthly rates are used to calculate the Subsidy for Employment. The default is Regular and Monthly Tax Adjustment (Default). This means that the Subsidy for Employment Proration is applied to both payroll run types: Monthly Tax Adjustment and Regular. For None, no Subsidy for Employment proration (factor 1) is applied to both payroll run types, Monthly Tax Adjustment and Regular. If you select Regular, proration is applied only to the Regular run type. The Monthly Tax Adjustment run type will use a Subsidy for Employment proration factor of one. If you select the Monthly Tax Adjustment, proration is applied only to the Monthly Tax Adjustment run type. Regular run type will use a Subsidy for Employment proration factor of one.	String	Monthly Tax Adjustment
ISR Tax Calculation	This override determines if the ISR tax is calculated. The default value is Yes. Note that if this override is set to No, it takes precedence over all other Employee ISR Tax component overrides.	String	Yes
ISR Tax Proration on Monthly Tax Adjustment Run Type	The standard Monthly Tax Adjustment ISR tax calculation procedure calculates the tax rates based on a factor derived from the periods the employee has worked in the month. This override applies only to the Monthly Tax Adjustment payroll run type and determines to calculate the tax based on the periods in the month. The tax calculation basis will be the month-to-date (MTD) ISR subject earnings balance. The default is Yes. This means that the ISR tax calculation determines the tax rates based on a factor derived from the periods the employee has worked in the month. If you select No, the ISR Tax rates are applied with a factor of one (no proration), regardless of the period when the Monthly Tax Adjustment run type is processed nor the employee hire date.	String	Yes
Pay Subsidy for Employment	When an employee has two or more employers, they must select which employer will pay the subsidy for employment in the ISR tax calculation. You can choose whether to exclude the employee from the subsidy for employment. The default value for this field is Yes. If you select No, then the subsidy for employment isn't calculated for this employee.	String	Yes
State Tax Exempt	Some companies or government agencies aren't required to pay the employer state tax. Select Yes to exclude this employee from the state tax calculation. The default value for this field is No.	String	No

Social Security Component Group

Calculation Components under the Social Security group are Social Security and SDI Calculation.

Social Security:

In some circumstances, an employee may be eligible for exemptions or varied rates related to social security. To make a change to these rules:

Expand the Social Security region on the Employee Tax Card.
Select the pencil icon to edit the Employee Social Security component.
Enter the start date of the changes for When does this change start?

The values you can enter for Social Security include:

Override Name	Description	Value Type	Value Example
Additional Quota	The percentage of the additional quota.	Rate	N/A
Additional Quota Exempt	Employee's exemption to additional quota.	String	N/A
Benefits in Cash	The percentage of the benefits in cash.	Rate	N/A
Benefits In Cash Exemption	Employee's exemption to benefits in cash.	String	N/A
Day Care Centers	The percentage of the day care centers.	Rate	N/A
Day Care Centers Exemption	Employee's exemption to day care centers.	String	N/A
Disability and Death	The percentage of the disability and death.	Rate	N/A
Disability and Death Exemption	Employee's exemption to disability and death.	String	N/A
Fixed Quota	The percentage of the fixed quota.	Rate	N/A
Fixed Quota Exempt	Employee's exemption to Fixed Quota.	String	N/A
Pensions and Beneficiaries	The percentage of the Pensions And Beneficiaries.	Rate	N/A
Pensions And Beneficiaries Exempt	Employee's exemption to Pensions And Beneficiaries.	String	Yes
Retirement	The percentage of the retirement.	Rate	N/A
Retirement Exemption	Employee's exemption to retirement.	String	Yes
Social Security Leaving Reason	Records the social security leaving reason when an employee transfers from one tax reporting unit to another.	String	N/A
Suspension in Age Outpost	The percentage of the suspension in age outpost.	Rate	N/A
Suspension in Age Outpost Exemption	Employee's exemption to suspension in age outpost.	String	N/A
Social Security Exemption	Determines if the employee is exempt from having social security quota liabilities calculated.	String	N/A
Tax Reporting Unit for Social Security	Select the tax reporting unit to be used for reporting this employee's social security quotas if it's different to the Association's tax reporting unit.	String	N/A

Click Save.

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Select the pencil icon to edit the SDI Calculation component.
Enter the start date of the changes for When does this change start?

The values you can enter for SDI Calculation include:

Override Name	Description	Value Type	Value Example
Annual pay period unit	Employee's unit of the annual pay period.	Total amount	N/A
Number of biweekly periods in the year	Number of biweekly periods in the year, which triggers the employee's SDI calculation.	Total amount	N/A
Number of days in the year	Employee's number of days in the year.	Total amount	N/A
Number of hours in the year	Employee's number of hours in the year.	Total amount	N/A
Number of months in the year	Employee's number of months in the year.	Total amount	12
Number of semimonthly periods in the year	Employee's number of semimonthly periods in the year.	Total amount	N/A
Number of ten-days periods in the year	Employee's number of ten-day periods in the year.	Total amount	N/A
Number of weeks in the year	Employee's number of weeks in the year.	Total amount	N/A
SDI Variable Portion Override	Use the SDI Variable Portion Override to specify an employee's previous bimonthly variable earnings. This override amount will be used for the calculation of SDI (integrated daily wage). This can also be used for any new hires/rehires where variable earnings form part of the employee's expected earnings.	Total Amount	N/A

Click Save.

Associations

Associate a calculation card with a tax reporting unit (TRU). The association happens automatically if you select the TRU in the payroll details during new hire. This association enables the payroll process to apply rules and rates defined for the TRU when calculating deductions. It also controls the aggregation of deductions for tax reporting.

Association details link calculation components with an assignment.

Change TRU for an Assignment

To end date or delete association detail records, use the Delete button in the Association Details section on the Employee Tax Card. The association detail records are for a pre-existing assignment on the tax card. Select any of these options as required.

Delete Record Permanently to delete the association detail record entirely.
Delete Date-Effective Record to delete the association detail record as of the entered effective date.
End Date to end date the association detail record (defaults to the effective date).

Note: If a record contains an end date, as of the effective date of the change, the card displays the Clear Date option.

Consider the following when end dating an association:

You can only delete or end date the association detail records.
You can't delete or end date association records if it's processed in a payroll.

To transfer an assignment from one TRU to another:

End date the assignment one day before the TRU transfer effective date.
Create a new association record for the new TRU.
Add the assignment to the new TRU association on the TRU transfer effective date.