Payroll
4 min read
18 days ago

Tecma experts do your payroll in Mexico in 9 steps

Payroll

Concentrate fully on your core manufacturing functions while Tecma’s staff of professionals do your payroll in Mexico.

The Tecma Group of Companies has been enabling manufacturers to succeed in Mexico for 35+ years.  Its menu of what is known as shelter services allows manufacturers with little or no international experience to reap the benefits of operating a production facility in low-cost Mexico. Because paying employees accurately, on time, and following all Mexican laws is one of the most important administrative functions that a company can perform, why not contract with the professionals. Let Tecma do your payroll in Mexico.  Here are the steps that Tecma will take on your behalf, leaving you free to make your products and optimize your company’s competitiveness.

Step 1: Record the changes

What are changes that payroll staff must make as they happen? They can be the following :

  • Registration of employees.
  • Dismissal of employees.
  • Salary modifications.

Under Mexican Federal Labor Law, Tecma presents such information to Mexican Social Security (IMSS)within five days after payroll staff made the change.  You don’t need to worry.  Tecma, has you covered.

Step 2: Calculate Benefits  

We calculate employee benefits! Mexican law requires the calculation of recurring and extraordinary benefits . What is this? Don’t worry. Tecma’s professionals know what the types of benefits these can be. Recurring benefits include items such as holiday pay, food vouchers, savings, retirement, and housing fund contributions (INFONAVIT), Social Security (IMMS) retirement (ISR), and federal holidays. Among extraordinary earnings are attendance and production bonuses, commissions, overtime, and miscellaneous awards.

Step 3: Calculate deductions

To do payroll in Mexico following legal requirements, deductions must be defined correctly. The deductions that Tecma considers are each one of those that apply to all pay periods. These are recurring ones like the IMSS, the ISR, INFONAVIT, and the savings fund. In addition, special deductions to be considered are for things such as unexcused absenteeism.

Step 4: Verify the RFCs (Federal Taxpayer Registry)

To do this step, when doing payroll in Mexico,  Tecma collects and verifies all employees’ RFC’s

Step 5: Pay employees 

This is the most important step in the process.  It is essential that employees are paid accurately and on time.  Tecma has a track record of doing this successfully for three decades. As a result, you can place your total confidence in Tecma’s professional payroll in Mexico staff.

Step 6: Generate Payroll Stamp

The payroll stamp certifies that payment has been made to each of the individuals working under your supervision. Stamping is a simple process: Tecma payroll information in .txt or .xml format directly to its AuthorizedCertification Provider. Next, the Certification Provider checks if you meet the Mexican Tax Administration’s (SAT) requirements. When the verification is successful, the “stamping” will be done automatically.

Step 7: Submit payroll receipts

By law, it is required that companies manufacturing in Mexico give their payroll receipts to employees and ask for their signatures. So how to send the receipts to your employees? The system used by the Authorized Certification Provider will send the receipts electronically, and Tecma sees to it that the process is completed with employee signatures.

Step 8: Calculate and pay taxes

When Tecma is finished doing all the processes discussed here related to your payroll in Mexico, it accurately calculates and pays taxes.  These include:

 

  • IMSS / INFONAVIT:  These fees must be paid no later than the 17th of each month
  • Payroll tax: Tecma payroll professionals determine the payroll tax corresponding to the payments you make to your workers every month. The payment deadline is the 17th of the following month.
  • ISR withholdings for wages: Tecma reports the sum of the ISR withholdings made to your employees in a calendar month no later than the 17th day of each month

Step 9: Extraordinary payroll processes  

Tecma’s expert staff prepare your payroll in Mexico by taking care of disbursements that are made outside those of your regular payment cycle.  These include:

 

  • Employee Profit Sharing (PTU):Year after year, you must determine the amount of PTU that you will pay to your employees.  This is according to the Mexican Federal Labor Law.  Companies must make payment to employees 60 days after the date on which your annual return has been submitted.

 

  • Annual Bonus(Christmas bonus): Tecma payroll professionals must determine the amount of bonus employers must pay.  As a minimum, and according to Mexican Federal Labor Law, payment must be for 15 days of salary for each year worked.  The payment deadline for this mandated disbursement is the 20th of December of each year.

 

The preparation and administration of payroll in Mexico is a detailed process that requires a staff of experienced professionals that can do the job effectively, efficiently, and accurately. Preparing the payroll is just one of the non-core areas that Tecma addresses for its Mexico shelter service clients.  Concentrate on your core manufacturing processes and leave the rest to us.

Gabriela Garcia

VP of Finance & Accounting

Gabriela Garcia

VP of Finance & Accounting

Gabriela is responsible for financial planning and analysis related to the company’s Latin American Region.