Employer Social Security: everything you need to know about this tax

Employer Social Security: everything you need to know about this tax

Table of Contents

Employer's Social Security is a contribution made by companies to ensure social security, which guarantees basic services to the population (social assistance, social security and health).

In this article we will explain the meaning of the employer's EHIC and what the company's obligations are in relation to this type of payment. We will present the basis for calculating this tax and point out the ways for the company not to go wrong with this type of expense. Thus, your company will avoid fines and problems with the IRS.

Before starting the content, we recommend that you access this free guide. It offers tips to help your company reduce the risk of fines. Answer the form and receive:

Employer's Social Security and the company's financial planning

Always be aware of the requirements of the law regarding spending on taxes, is one of the most delicate and meticulous works that HR need to do. One of these taxes that is within this responsibility is the employer's EHIC.

The employer's EHIC is the contribution made by the employer, that is, an employer, as a way of ensuring Social Security. In the case of companies, with regard to social contribution, it is the expenses with the employer's EHIC.

Below we will explain how the employer's EHIC calculation works and what the law says about this payment.

The organization's obligations

Being an entrepreneur requires attention to the details of the law, not only of human management, but also of fiscal management. Individuals and corporations have a responsibility to pay taxes and this always requires a thorough view of rights and obligations.

The employer's EHIC, for example, is one of those contributions that is part of the reality of companies. And in order to have a broad view of the law, in the case of this contribution, the Article 30 of LAW No. 8,212 details the importance of employers' Social Security and Social Security.

Art. 30. The collection and collection of contributions or other amounts due to Social Security obey the following rules: (Wording given by Law No. 8,620, of 5.1.93)

I – the company is obliged to:

a) collect the contributions of the insured employees and independent workers at their service, discounting them from the respective remuneration;

b) collect the amounts collected under the terms of paragraph a of this item, the contribution referred to in item IV of art. 22 of this Law, as well as the contributions incurred on the remunerations paid, due or credited, in any way, to the insured employees, independent workers and individual taxpayers at their service until the 20th (twenty) of the month following the month of competence. ; (Wording given by Law No. 11,933, of 2009). (Effect taking).

The meaning of Social Security

Social Security, supported in part by the employer's EHIC, is related to public actions that aim to ensure some rights of the population. Among these rights are social assistance, social security and health.

THE LAW No. 8,212, of social security, explains the meaning of the term Social Security.

Art. 1 Social Security comprises an integrated set of initiative actions by public authorities and society, aimed at ensuring the right to health, social security and social assistance.

Single paragraph. Social Security will obey the following principles and guidelines:

a) universality of coverage and service;

b) uniformity and equivalence of benefits and services to urban and rural populations;

c) selectivity and distributivity in the provision of benefits and services;

d) irreducibility of the value of the benefits;

e) equity in the form of participation in funding;

f) diversity of the financing base;

g) democratic and decentralized character of administrative management with the participation of the community, especially workers, entrepreneurs and retirees.

How to calculate

Gross revenue and payroll, these are the two bases for calculating the employer's EHIC. Know the differences and the details of these forms of contribution.

Employer's Social Security on payroll

With a rate of 20%, the calculation on this basis takes into account the company's payroll, plus all expenses with other workers who provided services. That is, they are 20% of the total remuneration paid, as the article 22 gives Law 8,212 / 91:

Art. 22. The contribution to be borne by the company, destined for Social Security, in addition to the provisions of art. 23, is:

I – twenty percent of the total remuneration paid, due or credited in any capacity, during the month, to the insured employees and independent workers who provide services, designed to repay the work, in whatever form, including tips , the usual earnings in the form of utilities and advances resulting from salary readjustments, either for the services actually provided, or for the time available to the employer or service borrower, under the terms of the law or the contract or, still, of convention or agreement collective bargaining or normative sentence. (Wording given by Law nº 9.876, of 1999).

It is also reiterated that indemnities, restitution of values ​​to the employee, family allowance or damage repairs are not included in the calculation basis. Only the expenses that are intended for the remuneration of work make up this account of the employer's EHIC.

Employer's Social Security on gross revenue

In 2015, the Law No. 12,546 / 11 that previously obliged some companies to use this base to calculate the employer's EHIC, they now have the right to choose. With that, they now have the right to define the most advantageous basis.

According to the law, the companies that may or may not choose the gross revenue model and their different tax rates on top of the gross revenue are:

  • 4.5% rate (Civil construction and infrastructure works companies);
  • 2% rate (Railway, subway and road transport);
  • 1.5% of aliquota (Broadcasting, journalistic and image and sound companies).

How is the payment done

The employer's EHIC is issued by the company itself through the GPS guide (Social Security Guide). Generation is done by IRS website, where the company is also responsible for making the launches.

The payment of the employer's EHIC can be made by debiting an account, at the lottery shops or even at the accredited banks.

Contributing to the employer's EHIC is constitutional

Always being aware of the company's obligations can avoid unnecessary and future expenses labor actions in the organization. These dangers also fit in relation to the payment of taxes, such as the employer's EHIC, for example.

If the calculations are done the wrong way and the requirements of the law are not properly followed, the company may suffer fines from the IRS and the Ministry of Labor.

Failure to pay or lower tax payments may result in fines.

Therefore, it is this constitutional obligation of the employers' EHIC that often contributes to the financing of basic services of society.

Thus, HR professionals and those responsible for the company's financial area need to pay attention to the specifics of the law so as not to err in this payment.

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