Enhancements to Annual Tax Adjustment (ATA) Payroll Run Type

The following enhancements have been added for Annual Tax Adjustment (ATA):

Inclusion of subsidy for employment calculation in ATA:

The ATA payroll run type computes the Employment Subsidy if the employee is eligible. This behavior remains consistent with current statutory requirements.

The employment subsidy is calculated in the same way as in a regular payroll run, and additionally considers the overrides applicable for ATA.

Expanded ISR subsidy overrides functionality:

Replacing the previous "Regular and Monthly Tax Adjustment" option by "Regular and Adjustments", the ISR Subsidy for Employment overrides functionality has been extended to support both run types:

  1. Monthly Tax Adjustment (MTA)
  2. Annual Tax Adjustment (ATA)

  • Apply overrides carefully as they directly impact ISR results.

  • Maintain an audit trail of overrides for compliance and reporting purposes.

  • Recommended for exception handling only, not as part of standard payroll processes .

Expand ATA exception management functionality:

The “Insufficient Pay for Adjustment” override is renamed to “Action on Annual Tax Adjustment Run Type Exception” and the new “Process as Monthly Tax Adjustment “option is available to add flexibility to manage ATA exceptions, such as:

  • Employee doesn't have enough earnings to pay the additional tax.
  • Employee does not meet the ATA eligibility criteria.

  1. Use the recalculation option when ATA runs return exceptions

  2. Validate recalculated results to confirm exception handling is correct

  • Ensures compliance with Mexican payroll legislation.
  • Provides payroll administrators with greater flexibility to apply corrections and manage exceptions across both monthly and annual adjustment processes, reducing manual intervention and errors.
  • Improves accuracy in tax adjustments, reducing rework and ensuring compliance.

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