In July, salary processing calculations will have new rules
The July salary processing will already be carried out based on the new IRS calculation model.
The central ratio is an approximation between what a worker deducts monthly (his monthly IRS withholding) and the final calculation of the tax (annual IRS) to be paid or received.
It has direct impact on companies and workers and that will cause a huge burden for Human Resources professionals.
Headings to deduct
Instead of deductions made at the end of the year for the purpose of calculating IRS, each month there will be an approximation to the contributory reality of each worker, through installments to be deduced.
These installments to be deducted will have a direct impact on the withholding of the IRS as they take into account the number of dependents and the degrees of incapacity (disability) of the dependents or spouses.
The outsourcing of Payroll
This type of legislative changes, the application of treatment rules with limited period, (as was the case with layoffs), are just a few examples of the complexity that has fallen on Human Resources professionals.
Instead of investing their time in People Management, Talent Management, Engagement with employees and thus enhancing Talent Retention, they are forced to occupy their days with eminently bureaucratic tasks and having to decipher legislative changes and its practical applicability.
Precisely for this reason, many entities have chosen to hire our Payroll Outsourcing Services (Payroll Full-BPO), working closely with the clients’ HR teams.
The Unikpeople software is already prepared to face this new calculation model and we provide the Employee Portal to support and automate HR processes.
Our systems already incorporate the IRS Tables that will be in force in the 2nd half of 2023.