A fourth register may also be required before the National Institute of Immigration (depending on the company and employee base).
Once a company is registered, it will be able to initiate recruiting and hiring employees according to the following procedure:
- Federal law states a labor contract must be signed between employee and employer, which outlines the salary, benefits and other features of the employment relationship.
- No special registration format is required; a file containing the personal, academic, fiscal and social security information of the worker(s) is sufficient.
- The employee(s) must be registered on the Social Security website.
- you can also register salary changes, new hires and terminations
- Employees may be hired under indefinite and fixed contracts
Benefits and Withholdings in Payroll calculation
One of the main aspects that a company must consider when formalizing the payroll in Mexico is the OCT payment or Workers Profits Shares of the Company Payment. This type of disbursement requires a pre-cost analysis, as the law establishes that the income declared in the company’s Corporate Tax generates a tax benefit that must be distributed among the workers of the company.
The below tables illustrates which are the statutory and additional benefits: