Overview of Mexican Calculation Cards

Component Groups

The calculation cards for Mexico include these component groups:

Taxes
Social Security
Loans

Taxes Component Group

The calculation components in the Taxes component group include:

Calculation Component	Card Level	When to add Component to Calculation Card
Employee Taxation	Personal	This component is created automatically when the Employee Taxation Card is created. This component has no component details and allows no overrides. It applies only to the Employee Taxation Card.
Employee ISR Tax	Personal	Add this component to the Employee Tax Card of each employee requiring the tax calculation. There are three overrides associated with this calculation component. The component is added to the card automatically during the new hire flow.
Employer ISR Tax	Organization	Add this component to the organization card so that you can define the fiscal year start and end dates.

Calculation Component

Card Level

When to add Component to Calculation Card

Employee Taxation

Personal

This component is created automatically when the Employee Taxation Card is created. This component has no component details and allows no overrides. It applies only to the Employee Taxation Card.

Employee ISR Tax

Personal

Add this component to the Employee Tax Card of each employee requiring the tax calculation. There are three overrides associated with this calculation component.

The component is added to the card automatically during the new hire flow.

Employer ISR Tax

Organization

Add this component to the organization card so that you can define the fiscal year start and end dates.

Predefined rates and rules required for calculating individual income tax are at the legislative level in calculation ranges.

Social Security Component Group

The calculation components for the Social Security component group include Employee Social Security and SDI Calculation.

You can create overrides for these calculation components on the organization card and Employee Tax Card as needed. This table describes the calculation components in the Social Security component group.

Calculation Component	Card Level	When to add Component to Calculation Card
Employee Social Security	Personal	Add this component to the Employee Tax Card of each employee requiring the social security calculation. There are several overrides associated with this calculation component. When you create a new hire, the component is added to the card automatically.
SDI Calculation	Personal/Organization	Add this component to the Employee Tax Card when you need to specify exemptions in the way the social security SDI is calculated. There are several overrides associated with this calculation component.
Employer Social Security	Organization	Add this component to the organization card when you need to specify exemptions or define the way social security is calculated for the organization using the several overrides available.

Calculation Component

Card Level

When to add Component to Calculation Card

Employee Social Security

Personal

Add this component to the Employee Tax Card of each employee requiring the social security calculation. There are several overrides associated with this calculation component.

When you create a new hire, the component is added to the card automatically.

SDI Calculation

Personal/Organization

Add this component to the Employee Tax Card when you need to specify exemptions in the way the social security SDI is calculated.

There are several overrides associated with this calculation component.

Employer Social Security

Organization

Add this component to the organization card when you need to specify exemptions or define the way social security is calculated for the organization using the several overrides available.

Note: SDI is the daily wage that integrates the annual fixed compensation and the previous bimonthly variable compensation.

Loans Component Group

The Loans component group includes the INFONAVIT calculation component. INFONAVIT is a federal government housing assistance scheme designed to provide mortgage products to Mexican workers. Mexican employers maintain the deductions for employees.

INFONAVIT is the predefined calculation component included in the Loans component group:

Calculation Component	Card Level	When to add Component to Calculation Card
INFONAVIT	Personal/Organization	Add this component when an employee has an INFONAVIT loan and you have a copy of the document stating the payroll withholding amount required to pay the loan.

Calculation Card Levels

You can create calculation cards at any of these levels:

Personal (payroll relationship)
Tax reporting unit (TRU)
Payroll statutory unit (PSU)

Calculation cards capture different information at different levels. The information defined at a lower level overrides values defined at higher levels. For example, an exemption amount defined on the Employee Tax Card override the exemption amount defined in calculation cards at the TRU and PSU levels.

Use these tasks to work with calculation cards at each level:

For personal calculation cards, use the Calculation Cards task.
For TRU-level cards, use the Legal Reporting Unit Calculation Cards task in the Setup and Maintenance work area.
For PSU-level cards, use the Legal Entity Calculation Cards task in the Setup and Maintenance work area.

Calculation Components

Each component group supports a set of calculation components that you can add to a calculation card. Calculation components vary depending on the card level and correspond to a specific payroll deduction, such as employee ISR tax. Each calculation component has corresponding information needed to process the deduction. For example, the information for the Social Security component captures any exemptions that would need to be accounted for when the calculating the employee's social security.

Tax Reporting Unit Associations

For the person level calculation card, the Employee Tax Card, you create associations that link the card to a tax reporting unit (TRU). The TRU is associated to the card through the Employee Taxation calculation component. That component is then associated with a specific assignment. The association ensures that when a payroll is run for a particular TRU, it includes all associated calculation cards.

Rules about associations vary by country:

Typically, all components on a calculation card are associated with the same tax reporting unit by default.

If a person has multiple assignments, you may be able to associate specific assignments with calculation components.

Calculation Card Creation

In countries where all employees are subject to the same set of statutory deductions, the application automatically creates one or more statutory deduction calculation cards. For Mexico, the Employee Tax Card is automatically created when an employee is hired. The person calculation card is based on the payroll relationship, so the card and its calculation components are also created. The TRU association and association details for the employee are added to the card when the TRU is selected during the hire process. The Employee Taxation calculation component is also added to the card.

For other card types, you create calculation cards as needed for each employee. If you load absence or time card data from another application, the application automatically creates the calculation cards.