eSocial – New Labor and Social Security Obligations on Payroll and their Impacts

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Table of Contents

Since 2018, eSocial has been generating important changes in UK residents companies, especially for the Human Resources area. The new standard of validation demands that companies send data almost in real time. Particularly representative is the impact of eSocial on payroll, a topic we will talk about now.

One of the most significant changes was the reduction in the deadlines for sending data. For this reason, employers must redouble their attention to filling out the employee registration form. This is because the new system requires that the data of all employees be included before the sheet is issued.

This requires a change in the processes of the companies, and the adoption of tools that help to comply with the new deadlines. Therefore, adopting new technologies is certainly a great investment, especially when it comes to automating and simplifying data access.

What kind of changes can be expected for the payroll with eSocial?

The purpose of this federal government program is to digitize the sending of data and to decentralize tax, social security and labor information. In the case of the payroll, it is calculated by the management software used. In other words, manual calculation is left out.

Because of this automation, the idea is that the processes of the Human Resources segment be facilitated and send the correct data regarding discounted and due amounts. In addition, other mandatory information on the pay stub is easier to inspect. For example:

  • bonus;
  • overtime;
  • INSS (National Institute of Social Security);
  • wage;
  • food, meal and transportation vouchers;
  • etc.

In this context, we can mention some specific changes:

Implementation schedule

The schedule has been adjusted according to the “feeling” that the government has about deliveries (and their problems) and how companies behave in relation to this. Considering the current schedule (see below), if we put it in terms of percentages, perhaps we could say that we are close to 60% of the road traveled.

Shortening of deadlines

Before the implementation of eSocial, the inclusion of events such as removal of employees or overtime in official records was only applied after a long time. From now on, this type of information should enter the sheet in the same month in which it happens and not in the next, something that was normal in the processes carried out by companies.

Therefore, it is necessary to pay attention to the registration of new workers. Until eSocial was implemented, it was normal for information related to the hired employee to be included only when closing the sheet. The new rules require that this data must be included in the system before the worker begins his activities.

Requirement of other data

Considering that HR in eSocial comprises the personnel department, the training area, in addition to the Occupational Safety and Occupational Medicine areas, we can list the information below:

  • Complete registration information of employees, including their dependents;
  • Complete information of the employment contract, such as position, salary, schedule / work schedule and place of work;
  • Payroll calculations and contract terminations, which are now sent openly to the government;
  • Payments made to each worker, including those without employment, specifying dates, values ​​and retentions;
  • Information from the prior notice worked;
  • Information on temporary leave, which covers a much more varied range than just the traditional reasons for illness, accident and maternity;
  • Mandatory training, according to the function;
  • Information regarding the company's risk environments, listing all the risk agents listed in the company's PPRA, hitherto required only on paper;
  • Information on the work environment of each worker, including specifying in detail the activities performed, necessary PPE's, among other information;
  • Information from the Occupational Health Certificates (ASO), previously required only on paper.

For all of the above items, it should still be considered that they each have their deadline for submission, which must be observed so that the company does not run the risk of fines.

Reduction of bureaucracy

One of the consequences of eSocial is to gradually reduce the amount of ancillary (and sometimes redundant) obligations currently required of taxpayers, such as DIRF, RAIS, SEFIP, CAGED, among many others.

At this point, there will really be a significant simplification, since the bodies involved will have the information available basically from everything sent by companies to eSocial and Reinf.

Payroll rigidity

The advent of eSocial brings a need for compliance not only with payroll data, but that also extends to the entire health and safety management of workers (OHS). Many companies do not even use computerized systems to store this information (PPRA, PCMSO, ASO, CAT, training, etc.). And a good part of the companies where there is a system involved only stores “loose” data, with no relationship with the payroll system. The challenge is to transform this data, whether on paper or in systems.

As for the payroll, rigidity certainly becomes a necessary component, otherwise there would be no reliability in the system. The government's validation system identifies all flaws and inconsistencies, practically forcing companies to keep their records and processes in perfect harmony with what is required.

Simplification of tax collection

In reality, no tax has been removed, so there is not necessarily a simplification. What has changed is the form of payment of the social security contribution and the FGTS.

As of the eSocial term, it is no longer the company that calculates these values ​​and collects them, but the governmental system that does all the calculations according to the information sent by the company to eSocial and Reinf, and consolidates this information in the DCTFWeb .

Currently, only the INSS is being paid in this model, and the FGTS is expected to start paying in the same way in August / 2021.

Data unification

The unification of workers' information in a single location is the primary objective of eSocial, in order to ensure that all participating entities (RFB, CEF, INSS and MTE) have instant access to information within their competence.

With the division of obligations by groups of companies and different phases of delivery for each group, unification is naturally gradual. According to the current schedule, in 2021 it is estimated that 100% of companies have joined the system.

Implementation schedule

As mentioned above, the adaptation schedule has been changed a few times according to the behavior of the companies. Currently, the deadlines are as follows:

esocial schedule

Some essential precautions for the elaboration of the payroll with eSocial

In view of all these changes, it is important to note that there are some aspects for the preparation of the payroll that need care, such as those noted below:

Charges

The processed values ​​need to be checked in order to ensure that they are equal to those generated by the government. Otherwise, there will be impacts on the payment of charges.

Sending rubrics

The data related to the remuneration must be present in the table of headings. This is the basis for calculating the Labor Union Contribution, FGTS, INSS and Withholding Income Tax (IRRF). Any difference will create losses for the company.

Closure

The amounts of commissions and deductions from covenants must be placed correctly on the sheet. The ideal is to create a schedule month by month, with the agreement that employees pass on the data that change the calculation in the competency. This is the case, for example, with the delivery of daily receipts or the provision of services to other companies.

The payroll calculation also needs to be in accordance with the records of non-periodic events, as there is an influence on the remuneration of the worker. Thus, it is necessary to respect the complete period of competence.

Some measures to help regularize eSocial

With all these issues, it is to be expected that there will be some confusion for the company to adapt to eSocial. But, even with the demand for more details in the data and the concern with not letting any flaws pass to avoid losses, it is possible to make this adaptation without so much impact. Some tips to assist in this process:

Adaptation to new technologies

A fundamental issue for companies to meet eSocial requirements is the speed with which data reaches official records. Thus, it is necessary to modernize structures.

In addition to investing in integrated systems, it is also vital to change the way information is accessed. One way may be to adopt cloud solutions. With just a few steps, it is possible to reach the necessary information, avoiding delays and, consequently, fines.

Process optimization

Since data needs to be sent almost in real time, it is essential that companies organize their processes. One way to optimize them is by adopting solutions aimed at the Human Resources sector.

For example, payroll automation can be done with electronic point management, which offers many facilities, such as access to real-time data, even from employees who work outside the office. It may also be even better to outsource the payroll, thus preventing the entire process from being carried out by the company alone, and leaving it to a specialized team.

Team training

Adequacy to eSocial requires that the company be prepared not only in its structure and processes, but mainly in its personnel. Employees need to be aware of the changes, starting, of course, with the Human Resources area.

With the new system, practices such as reporting data on paper and the delay in sending information can no longer occur. For this reason, the Human Resources segment must meet the deadlines set by the regulations.

esocial data tips

So, did you like our content? Have more questions or suggestions? So leave a comment or contact us!

 

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