Introduction

The Certificado Fiscal Digital por Internet (CFDI) is the standard mechanism to issue documents that will be filed to fiscal authorities.

Any company, small business, or individual that needs to issue a fiscal invoice or receipt needs to use a software solution capable to send the document to the Sistema de Administación Tributaria (SAT) Mexico government agency. The CFDI file is sent digitally to a third-party where the file information is validated and receives the digital certificate stamping from SAT verifying that the information is accepted.

For payroll, each time the employer pays any compensation (such as earnings, benefits) to an employee, the employer must issue a payroll CFDI file and receive the stamp from SAT. Otherwise, that payroll expense won't be deductible.

The CFDI file consolidates all payroll data, such as employer information, employee personal information, bank details, earnings, deductions, Social Security information, absences, disabilities, and overtime hours.