In January 2023 the Tax Administration Service (SAT) made a change in the employees’ payroll receipts that could have gone unnoticed by many Mexican workers: it is the “Adjustment to the subsidy caused“. This concept is crucial to understanding how your payroll receipt and avoid fiscal and financial problems.
Since 2019 the SAT sought to correct inconsistencies related to the employment subsidy. This concept is intended to help low-income workers, reducing tax burdens. However, in many cases, this concept was misapplied or not adjusted in a beneficial way. That is why, in compliance with transparency, the SAT entered the field “Adjustment to the subsidy caused“.
This concept seeks to reverse the employment subsidy in cases where its application is not justified. That is why in January it is possible to see said adjustment in the net salary reflected in the January receipts. However, this modification should not reduce your income. If this happens, you should pay attention to the payroll receipt to verify under which items the decrease occurred.
Lee: Fines and payments by the UMA increase; will affect the pockets of Mexicans
It should be noted that the “Adjustment to the subsidy caused“has caused controversy since its appearance. There are, for example, those who point out that the procedure contradicts the Income Tax Law (ISR). Some others point out that the change is not specified in the legal framework. Additionally, several others point out their concern about how decreases in monthly take-home pay can cause confusion and discomfort.
On the other hand, workers are not the only ones affected by the change, but companies must also secure the fields in the Digital Tax Receipt over the Internet (CFDI) in order to avoid sanctions.
How to avoid the “Adjustment to the subsidy caused”?
The company can eliminate the monthly adjustments by ISR. Withholdings would only occur when the annual declaration must be made to the SAT. Although this may result in less monthly disposable income for workers.
Clarity in monthly adjustments. This system is ideal, as it allows them to be clear and easy to understand. Corrections are faster, although it involves training and advice from employers in charge of payroll.
You may be interested in: Mexican peso closes the day UP
* * * Stay up to date with the news, join our Whatsapp channel * * *
OB
