Outsourcing

Employees contracted before January 26, 2017 Every employee having worked at least 700 hours in the twelve-month period commencing October 1 and ending September 30 is entitled to receive a mandatory Christmas Bonus. The bonus is 6% of the employee’s wages up to a maximum employee individual wage of $10,000. Accordingly, the maximum bonus payable will be $600. In the case of those employers with 12 or less employees, the applicable rate is 3% of the employee wages up to a maximum of $10,000 ($300) Employees contracted after January 26, 2017 Every employee having worked at least 700 hours in the twelve-month period commencing October 1 and ending September 30 is entitled to receive a mandatory Christmas Bonus. In case, that the employer employs 21 or more employees for 26 weeks within the coverage period, will be required to pay to each employee a bonus equal to 3% of the total salary earned up to a maximum bonus of $600.

Due to the effects caused in Puerto Rico by Hurricane Fiona, the State Insurance Fund Corporation (CFSE) has decided to extend the deadline for employers to comply with the payment of their policies.

The afternoon of September 18, 2020, Hurricane Fiona made its landfall in the Southwest coast of Puerto Rico bringing with it 85 mph winds and a large amount of rain. This event caused many rivers to overflow their banks, causing emergencies around the Island. Special tax law provisions may help taxpayers and businesses recover financially from the impact of a disaster, especially when the federal government declares their location to be a major disaster area. Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area.

It is the duty of every employer to insure his or her employees against all work-related injuries, illnesses, or death. The State Insurance Fund Corporation’s (CFSE) Worker’s Insurance is the exclusive remedy available to the employee in these cases.

The Puerto Rico Workers’ Compensation Insurance Policy (CFSE by its Spanish acronym) establishes the payment of the preliminary premium in two semesters. It is the employers’ responsibility to comply with the payments within the dates established in order to maintain the validity of the current policy.

On November 2, 2021, the Puerto Rico Treasury Department issued the Informative Bulletin 21-09 to notify the changes made to Forms 499R-2/W-2PR and Informative Returns for the year 2021.

The federal tax guide for Puerto Rico employers, Publication 179 has issued the following changes for taxable year 2021.

The Internal Revenue Service (IRS) issued the following changes for Social Security and Medicare for the taxable year 2021.

The Puerto Rico Workers’ Compensation Insurance Policy establishes the payment of the preliminary premium in two semesters. It is the responsibility of the employers to comply with the payments within the dates established to maintain the validity of the current policy.

The Puerto Rico Treasury Department issued Publication 20-01: Developer Guide Form 499R-2/W-2PR (Copy A) Electronic Filing Requirements for 2020 tax year.

The Secretary of the Department of Labor (DTRH) issued the Circular Letter No. 2020-05 to interpret and clarify some provisions of Law No. 148, better known as the “Bonus Law” for private companies and the Regulation No. 9003 of September 18, 2017 that establishes the guidelines to manage said law.

Requirements for the payment of 2020 Christmas bonus.