How are this month's wages with changes in earnings and pension contributions

The income that employees receive these days includes one of two novelties: either they receive lower discounts for social security contributions, or they include the return of a tax amount. on the income corresponding to the reductions of the previous months. In both cases, the practical consequence is that more money must reach the pocket than in previous periods.

Less pension contributions

In the case of those receiving gross compensation up to $ 60,000 and as provided by the
Decree 561 corresponds to that of August wages and this month (which are billed these days and October, respectively), a bonus of up to $ 2,000 in the contribution the pension system, which represents 11% of the salary. For some income levels, this means that there is no cash back directly for that particular item; for others, the measure amounts to a reduction of the amount subtracted.

The first situation (the lack of direct contributions to the pension plan) concerns those who receive up to $ 18,181 in gross. Up to this income, the 11% contribution is less than the $ 2,000 limit established for this temporary benefit. Discounts apply from this figure, but they are smaller than usual.

For example, for a gross monthly salary of $ 40,000, the total contribution (applied through July) is $ 4,400. For this month and the following year, however, $ 2400 is discounted for each period, with the State taking care of the remaining $ 2,000. And for a fee of $ 55,000, to cite another case, the contributions of August and September remain of $ 4050 instead of the usual $ 6050, because, again, $ 2,000 will not be collected because of the measure provided.

What happens if the same person receives two or more salaries because she has two or more employers? According to
Regulatory Resolution 4558 approved by the AFIP, provided that the limit of $ 60,000 is not exceeded when gross wages are added, workers must inform each employer of the amount invoiced in another employment relationship, so that advantage is applied proportionately.

In addition, Decree 561 states that in the case of part-time contracts, or also where only part of the month has been worked, the $ 2,000 limit is considered proportionately.

The reduction of the amount of the salary reduction is limited to the pension contribution. On the other hand, those intended to finance social work and PAMI are subtracted in the usual way, each representing 3% of the remuneration.

Income tax

The other measure affecting wages for this month and the following month, among those set up after the sharp devaluation that followed PASO and which led to an acceleration in inflation, is the
income tax relief for what is received for all this 2019 (even for the last few months). Tax bases were increased by 20%, which in January of this year had increased by 28.29% according to the mechanism established by law. This mechanism, by providing that the annual update is computed on the basis of a compensation index, has made this adjustment well below inflation and, consequently, the tax burden measured as an actual percentage of wages was more important than before. , even in case of loss of purchasing power.

The increase in the non-taxable salary has two effects: one is that some employees are released from the profit rebates and the other, all who pursue their efforts in one way or another. Another enjoyed a discount lower than the one they had been. In both cases, since the change provided is valid for year-round pay, recalculations indicate that there were additional rebates and, therefore, refunds were to be made to taxpayers.

At present (in September, for August wages) and in October (for September income), tax changes have the strongest effect, as these are the periods during which these differences are returned. calculate the tax as it was in effect until a few days ago and recalculate it with the help of the new parameters.

The reimbursement is discriminated against on the salary receipt as "Benefits Decree 561/19", as this established Resolution 4546 published by AFIP.

The amounts of this declaration and the annual tax relief vary from case to case. As an indication, some examples are illustrated below. They indicate the differences between the annual and monthly taxes, depending on whether the calculation corresponds to the previous or next measure.

• An employee without any deductions from his family or for other reasons, with a gross monthly gross salary of $ 50,000 this year, would have paid, for 2019, $ 2,420, or a monthly average of $ 202, in no change (in the monthly amount). the amount corresponding to the bonus is included because the tax for this element is deducted in a distributed way during the year). With the amendment, this person is excluded from the 2019 tax, which should be returned at source until now. In addition, in this case, the effect of the additional $ 2,000 cash is added to the retirement discount bonus.
• If it's a person whose gross salary is $ 60,000, also without deduction, she would have benefited from a $ 16,836 earnings rebate (a monthly average $ 1,833); With the modifications, the recalculation gives an annual tax of 3169 dollars (about 264 dollars per month). Then there should be compensation for what has already been withheld, and for the rest of the year there will be reductions, but less than those provided previously.
• A person whose average monthly earnings for the year was $ 85,000 gross, net of spouse and two children, would have paid an annual tax of $ 39,954 with the previous plan ($ 3,330 per month) ; With the change, the calculation indicates that you will pay $ 18,624 a year ($ 1,522 average monthly). You will also receive, up to now, a compensation for the reduction of the reduction and, in addition, you will continue to subtract an amount corresponding to the tax.
• With a gross monthly salary of $ 85,000 gross, but in this case with a dependent child and a deduction for payments to domestic staff (one of the deductions that have been updated with the new measures), a total of earnings would have been paid by annual earnings of $ 49,048 (an average of $ 4,087 per month). On the other hand, with what is now planned, the annual amount will be $ 21,925 (about $ 1,827 per month).