Peace of mind with automated Brazil-specific tax calculations in PaySpace

Managing payroll in Brazil can be complex due to the numerous taxes and social contributions required by law. Manually calculating these taxes or relying on basic desktop software can be time-consuming, prone to errors, and leave you exposed to potential penalties for non-compliance. 

PaySpace simplifies this process by offering automatic calculations for all relevant Brazilian taxes, giving you peace of mind and freeing you to focus on running your business. 

Here’s a breakdown of the Brazilian taxes PaySpace handles for you: 

• INSS (Instituto Nacional do Seguro Social): This social security contribution is levied on both employers and employees. The employer contribution rate typically ranges between 20% and 22.5%, depending on the industry. PaySpace accurately calculates the employer contribution based on your industry and employee salaries. 

• IRRF (Imposto de Renda Retido na Fonte): Income tax withheld at source. Brazilian income tax is progressive, meaning the tax rate increases as income increases. PaySpace factors in employee salaries, allowances, and deductions to determine the correct IRRF amount to withhold and remit to the government. 

• FGTS (Fundo de Garantia do Tempo de Serviço): This severance pay guarantee fund requires employers to contribute 8% of an employee’s monthly salary. PaySpace automatically calculates and deposits the FGTS contribution for each employee. 

• PIS (Programa de Integração Social): The Social Integration Program is a payroll tax used to fund social programs. The PIS contribution rate can vary depending on the company’s activity and revenue. PaySpace stays updated on the latest PIS rates and calculates the contribution for you. 

• COFINS (Contribuição para o Financiamento da Seguridade Social): Tax on Financial Operations for Social Security Funding. This tax is levied on a company’s gross revenue. PaySpace calculates the COFINS contribution based on your company’s specific tax regime and revenue figures. 

• CSLL (Contribuição Social sobre o Lucro Líquido): Social Contribution on Net Profit. This tax is levied on a company’s net profit. PaySpace ensures the CSLL contribution is calculated accurately based on your company’s financial statements. 

Benefits of Automated Tax Calculations with PaySpace: 

• Accuracy: Eliminate the risk of errors associated with manual calculations. 

• Compliance: Stay up-to-date with the latest Brazilian tax regulations and avoid penalties. 

• Efficiency: Save time and resources by automating complex tax calculations. 

• Transparency: Gain clear insights into your tax liabilities with detailed reports. 

• Peace of Mind: Focus on running your business with confidence, knowing your payroll taxes are handled accurately and on time. 

Don’t let the complexities of Brazilian payroll taxes become a burden.

Get in touch and experience the peace of mind that comes with automated, compliant, and stress-free payroll processing.