Tax & Compliance¶
Go to Settings → Payroll → Tax & Compliance to configure the contributions applied to payroll.
Social security, not income tax
The tax engine calculates employee and employer social-security contributions. It does not calculate progressive personal income tax. Add income-tax withholdings as manual rules if you need them.
One-click country setup¶
- Click Setup Country Compliance.
- Choose a country.
- Preset countries load their employee deductions and employer contributions automatically, and import the current year’s holidays.
Supported presets¶
The 12 preset countries and their total contribution rates:
| Country | Employee | Employer |
|---|---|---|
| Costa Rica | 10.83% | 26.83% |
| Mexico | 2.295% | 18.275% |
| Panama | 9.00% | 18.35% |
| Colombia | 8.00% | 30.02% |
| Ecuador | 7.20% | 22.48% |
| Honduras | 3.50% | 9.50% |
| El Salvador | 10.25% | 9.75% |
| Guatemala | 4.83% | 14.67% |
| Uruguay | 18.00% | 14.50% |
| Paraguay | 9.00% | 23.80% |
| Chile | 20.20% | 10.30% |
| Peru | 12.50% | 10.15% |
Each preset expands into individual line items (for example, CCSS/IVM in Costa Rica, IMSS/INFONAVIT in Mexico, AFP/ISAPRE in Chile), which you can review, edit or remove.
Add a manual tax rule¶
For countries without a preset, or to add income tax:
- Click Add Tax Rule.
- Fill in:
| Field | Notes |
|---|---|
| Country | Target country |
| Category | Employee Deduction or Employer Contribution |
| Tax Name | Unique per country |
| Rate (%) | 0–100 |
| Threshold | Optional minimum income |
| Effective Date | When the rule starts applying |
Rules are grouped by country and category, with inline edit and delete.
How thresholds work
A threshold is a floor: below it the rule does not apply; at or above it the rate applies to the whole taxable gross. There are no progressive brackets.
Manage and update¶
- Remove All deletes the preset-derived rules for a country (manual rules are kept).
- Preset Updates Available compares your installed version against the latest and lets you install or update.
- Active-country banners and a compliance checklist summarize what is configured.
Compliance checklist¶
The checklist tracks whether you have configured tax rates, social-security deductions and employer contributions. Use it as a reminder before running payroll.
Related¶
Still have questions? Ask on Discord or explore the tutorials.