If you want to know about him employment subsidy First of all, you must bear in mind that in addition to being a mandatory right, you must calculate it according to the tables established by the Income Tax Law in its article 113 and 8
But you should also know not only how you should calculate it but also when you should apply it and when you should not apply it, therefore below you will obtain complete information about this right that it is important that you know it and know how to apply and calculate it.
How does the employment subsidy work?
With respect to employment subsidy You already know that it is a right that you must know how to calculate and know when it is applicable, but it is also a benefit that is granted by the Federal Government through your employer, who will apply it when you withhold income.
As a worker you receive the subsidy along with the salary whose amount is up to two times the minimum wage.
Does the employer get back the amount it awarded? Yes. The employer can recover the amount granted by crediting workers with higher income against withheld income and even against corporate income tax, in which case it is at their expense.
Step by step how to calculate the employment subsidy
Step 1: To calculate the employment subsidy, you must adhere to the tables of salary ranges that the SAT publishes every year. These tables are considered as the basis for calculating the tax, but for this you must know the tables and then make the calculation …
Take into account this table for the monthly provisional payments:
1.With a lower limit of $ 0.01, an upper limit of $ 578.52, a fixed fee of $ 0.00 and the percentage on surplus is 1.92%
- With a lower limit $ 578.53, upper limit $ 4910.18, fixed fee $ 11.11, 6.40%
- With a lower limit $ 4910.19, upper limit $ 8629.20, fixed fee $ 288, 10.88%
- With a lower limit $ 8629.21, upper limit $ 10031.07, fixed fee $ 692.96, 16%
- With a lower limit $ 10031.08, upper limit $ 12009.94, fixed fee $ 917.26, 17.92%
- With a lower limit $ 12009.96, upper limit $ 24222.31, fixed fee $ 1271.87, 21.36%
- With a lower limit $ 24222.32, upper limit $ 38177.69, fixed fee $ 3880.44, 23.52%
- With a lower limit of $ 38177.70, upper limit $ 72887.50, fixed fee $ 7162.74, 30%
- With a lower limit of $ 72,887.51, upper limit of $ 97,183.33, fixed fee of $ 17,575.69. 32%
- With a lower limit $ 97183.34, upper limit $ 291500.00, fixed fee $ 25350.35, 34%
- With a lower limit of $ 291550.01 onwards, fixed fee $ 91 435.02, 35%
But you must also take into account the applicable employment allowance table, since otherwise you would not be able to perform the calculation later:
For income from $ 0.01 to $ 1768.96 the monthly employment subsidy is $ 407.02
For income from $ 1768.97 to 2653.38 is $ 406.83.
For income from 2,653.39 to $ 3,472.84 it is $ 406.62.
For income from $ 3472.85 to $ 3537.87 is 392.77
For income from $ 3537.88 to $ 4446.15 it is $ 382.46
For income from $ 4446.16 to $ 4717.18 it is $ 354.23.
For income from $ 4,717.19 to $ 5,335.42 it is $ 324.87.
For income from 5335.43 to $ 6224.67 it is 294.63.
For income from $ 6224.68 to $ 7113.90, it is $ 253.54.
For income from 7113.91 to $ 7382.33, it is $ 271.61.
For income from 7382.34 onwards it is $ 0.00
Step 2: Taking into account the previous table, let’s suppose that you earn a monthly salary of $ 5000 and then you would be in the third range, which indicates a lower limit of $ 4910.19, an upper limit of 8629.20, a fixed fee of $ 288.33 and a percentage on surplus of 10.88%
You must make a subtraction considering the lower limit and your salary so that you obtain the excess income, so in the example you will subtract the lower limit from your salary of $ 5000: 4910.19. The subtraction will give you the excess income which is $ 89.81.
Step 3: You must multiply the surplus you obtained by the percentage of 10.88% indicated in the previous table, then you will perform this multiplication: 10.88% x $ 89.81, which will give you $ 9771328.
You will have obtained the marginal tax to which you must add with a sum the fixed fee according to the first table, then you will add 288.33 plus $ 9771328, which will give you $ 298.101328.
You must round the number you get to only two decimal places, then the result will be $ 298.10 which will be the income tax that the employer will deduct from you as a worker.
Step 3: If you take into account the second table according to the amount of the salary in the example, you will have a monthly employment subsidy of $ 327.87.
So you must subtract from $ 298.10, 327.87 and it will give you a negative result. – $ 26.77 and since it is a negative result, your employer will not withhold income from you, it will return $ 26.77, but if the amount had been positive, it would mean the payment as ISR
What is the employment subsidy?
You want to know what is the employment subsidy, as it is simply a help that the law stipulates that the employer pays the employee when his salary is minimum.
It is a subsidy that is calculated using the tables of the income tax law.
What is the accredited employment subsidy?
Now you want to know what is the accredited employment subsidy, because for the application of the subsidy there are requirements that are essential for it to be considered creditable:
- Have a detailed record of benefits, salary payments and benefits.
- Have tax receipts that indicate the amount paid for income.
- Have the documents submitted by the workers.
- Make the presentation every year before February 15.
- Having made the payment of social security contributions by the workers who received the employment subsidy.
How is the employment subsidy 2019?
The Official Gazette of the Federation published the ISR 2019 tables on December 24 without any change with respect to the 2018 tables, therefore employment subsidy 2019 is the same.
How is the 2018 employment subsidy?
The employment subsidy 2018 is calculated according to the following table:
- With a lower limit of $ 1.01, an upper limit of $ 578.52, a fixed fee of $ 0.00, there corresponds a percentage on surplus of 1.92%
- With a lower limit of $ 578.53, an upper limit of $ 4,910.18, a fixed fee of $ 11.11, 6.40%
- With a lower limit of 4910.19, an upper limit of $ 8629.20, flat fee of $ 288.33, 10.88%
- With a lower limit of $ 8,629.21, an upper limit of $ 10,031.07, flat fee of $ 692.96, c 16%
- With a lower limit of 10031.08, an upper limit of $ 12009.94, flat fee of $ 917.26, 17.92%
- With a lower limit of $% 12009.95, an upper limit of $ 24222.31, fixed fee of $ 1271.87, 21.36%
- With a lower limit of $ 24222.32, upper limit of $ 38177.69, fixed fee of $ 3880.44, 23.52%
- lower limit of $ 38177.70, upper limit $ 72,887.50, fixed fee $ 7162.74, 30%
- Lower limit of $ 72887.51, upper limit 97183.33, fixed fee $ 25350.35, 34%
- Lower limit $ 97887.51, upper limit $ 291550.00, fixed fee $ 25350.35, 34%
- Lower limit $ 291500.01 onwards, fixed fee $ 91 435.02, 35%
What is the legal basis for the employment subsidy?
- The legal basis of the employment subsidy indicates that the employment subsidy is applicable to all taxpayers in an employment relationship.
- It also applies to workers with a share in the profits of the company.
- It is applicable to payments and benefits that are obtained through workers, officials of the Federation, municipality and federal entities.
- It is not applicable to advances and returns obtained by civil associations, civil societies, members of production cooperatives, income from compensation, retirement, seniority or payment for separation.