Many countries in Latin America are paving the way to a new era of electronic payroll reporting with the development and implementation of tools for digital invoicing and processing.
It is expected that by the end of 2015 a total of 42 billion electronic invoices will be processed globally – 25 billion of these would be processed in Latin America according to Billentis' report "Entering a new era". The following are a few of the digital reforms taking place in the region:
- Mexico: Mexico, along with Brazil, is one of the most developed countries in terms of the usage of electronic processes at an international level. To be in compliance in this country, companies must provide its employees Electronic Payslips (CFDI). In order to do so, they are required to work with an Authorized Certification Vendor (PAC).
- Argentina: Argentina also requires Electronic Payslips, but currently only for those companies the local authorities have notified. If a company is notified, they must register through the local tax authority's online portal; non-compliance penalties range up to 2,000% of the minimum salary paid.
- Brazil: Starting September 2016, it will be mandatory for all companies to comply with e-Social regulations. E-Social is a digital platform that contains specific reporting templates aimed at guaranteeing accuracy in reporting, homogenizing the way the government receives information, and providing workers a way to access their details. The Brazilian Ministry of Labor is in charge of running regular audits and penalize companies for non-compliance.
- Colombia: Colombia's Social Security payments must be made electronically through the Integrated Social Security Contribution Form (PILA). The local entity Parafiscal and Pension Management Unit (UGPP) is responsible for performing the corresponding audits and sanctioning companies if they are not complying with the set process.
- Uruguay: Uruguay's government passed an ordinance allowing companies to provide electronic payslips to their employees. However, it is not mandatory as in other countries. Companies that choose to provide electronic payslips must utilize a specific system allowing their employees to access their information remotely. Every employee must receive a unique username and password to access the approved system.
Join our webinar to learn more
Operating in Latin America? Register for our upcoming webinar "Digital Payroll Reporting in Latin America" taking place on November 18th, 2015 at 12:00pm EST. Learn more about the systems being used in each country and the requirements for companies operating in the market. There will be a live Q&A session with TMF Group experts from across the region. Click here to register.
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