Comprehensive Payroll Management Advisory

Contact us: +57 310 558 91 17

Electronic Payroll

New schedule to implement Electronic Payroll

Through Resolution 037 of May 5, 2021, the DIAN modified Article 6, paragraphs 1 and 2, of Resolution 000013 of February 11, 2021, establishing new deadlines to begin the Electronic Payroll authorization process.

It should be noted that parties required to send Electronic Payroll reports to the DIAN and belonging to group 4, that is, with 1 to 10 employees, have an additional deadline in 2022 for transmission. Check it here.

The general schedule is as follows:

Through Resolution 13 of February 11, 2021, “whereby the electronic invoicing system implements and develops the functionality of the electronic payroll payment supporting document and adopts the technical annex for this document,” the National Government, through the DIAN, imposes another obligation on companies, whether individuals or legal entities. They must implement the Electronic Payroll process starting May 31, 2021, taking into account the implementation schedule based on the number of employees.

Although this process, as happened with Electronic Invoicing, may undergo changes in its schedule, it is already a reality. Individuals and legal entities required to implement it must begin doing so now.

Because the experience with Electronic Invoicing may make the process easier, since it operates similarly, it is necessary to make adjustments to payroll processes for a successful transition. As with Electronic Invoicing, the participation of several actors is also required, as are technological requirements such as a digital signature and an in-house or external technology provider.

It is very likely that the DIAN will also need to provide this mechanism for small companies so that it does not become too costly for them.

At www.contabilidadbogota.com, we offer advisory services for the implementation of Electronic Payroll and for determining whether you are required to do so.

Contact us; the first consultation is free: 310 558 91 17 – 313 821 48 03

New deadline for Electronic Payroll

There is more time to submit Electronic Payroll for employers with 1 to 10 employees.

The deadline for submitting Electronic Payroll has again been extended for employers with up to 10 employees on their payroll. This was established in DIAN Press Release 027 of March 2, 2022, based on Resolution No. 000028 of February 28, 2022. The release states that, in this case, employers must generate and transmit the first electronic payroll payment supporting document and the adjustment notes for that document as follows: the months of December 2021, January 2022 and February 2022, independently, within the first ten business days of May 2022; and the months of March, April and May 2022, independently, within the first ten business days of June 2022.

Despite the above, and even if this applies, required parties are advised not to continue postponing the process and to continue as if the deadlines had not been extended.

If you have between 1 and 10 employees, you must report payroll to the DIAN beginning with December 2021. However, there is relief for these small employers who, for different reasons, have not done so.

In Resolution 151 of December 10, the DIAN states in its considerations that companies must focus their efforts on developing their operations and that “it is necessary to establish a special deadline for complying with the generation and transmission of the electronic payroll payment supporting document for those required parties.” Therefore, it granted a deadline until the first 10 days of March 2022 to generate and transmit the payroll for December 2021, January 2022 and February 2022.

Accordingly, many employers with up to 10 employees have more time to comply with this obligation. It should be noted that if the employer has already implemented the system, this deadline does not apply and the employer must comply with the schedule established in Resolutions 37 of May 5 and 63 of July 30, 2021.

Likewise, according to unofficial versions, the DIAN is developing a free solution for this group of required parties. It is believed that it should be ready before March 2022 and that, as with the DIAN’s free Electronic Invoicing solution, employers would not need to hire services from external providers.

Remember that even if you have only one employee on payroll and are required to generate Electronic Payroll for the DIAN, you must transmit the payroll for December, January and February by March 10, 2022.

As a business owner, you should focus your efforts on developing your company’s operations. We take care of the payroll implementation process.

We treat your accounting matter, situation or problem as our own in order to solve it quickly.

If you need more information or need help with implementation, contact us here. The first consultation is FREE.

310 558 91 17 - 313 821 48 03

Do you know whether you are required to generate Electronic Payroll?

Not everyone is required to generate and transmit electronic payroll for their employees.

According to DIAN Resolution 013, every taxpayer that hires staff or has payroll through an employment contract is required to generate and transmit payroll to the DIAN within the established deadlines.

Article 4 identifies the parties required to generate and transmit the payroll payment supporting document and adjustment notes. This responsibility lies with income tax and complementary tax taxpayers who want to include those costs or expenses as deductions in income tax returns and as deductible taxes in VAT returns. Therefore, if you have employees but do not file an income tax return, you are not required to generate Electronic Payroll.

It should be noted that parties required to send Electronic Payroll reports to the DIAN with up to 10 employees have a new deadline for transmission. Check it here.

As a business owner, you should focus your efforts on developing your company’s operations. We take care of the payroll implementation process.

We treat your accounting matter, situation or problem as our own in order to solve it quickly.

If you need more information or need help with implementation, contact us.

310 558 91 17 - 313 821 48 03

Proper payroll and labor settlement prevents future labor claims

Employees are the greatest asset a company has because their work helps it grow. However, it is also true that a single employee can place the company in serious difficulty and even cause it to “go bankrupt.” Many labor cases heard by the courts are filed by employees who have left a company and claim a settlement and payment consistent with the time worked.

The vast majority of these claims are justified because the employer failed to pay them at the proper time, either through lack of knowledge, because they believed nothing would happen, or because they thought they were doing the employee a favor, often in cases involving a friend. Frequently, prior agreements are made with the employee regarding the amounts to be paid, such as when the employee is given the value of social security so that the employer does not affiliate them with the respective insurers. At the end of the employment relationship, the employee may also be asked to sign a release document in an attempt to support the idea that nothing is owed.

It must be remembered that if agreements between the parties contradict or modify what the law provides, those agreements have no legal effect. In the event of a labor claim, they may be completely disregarded. Labor judges tend to give credibility to what the employee alleges or claims without requiring much effort from the employee to prove it. By contrast, the employer must demonstrate or prove what it wants the judge to consider, which can be very difficult. Therefore, many labor claims are almost always decided in favor of the employee, forcing the employer to pay all unpaid employment claims plus the costs of the proceeding.

Another serious and frequent mistake employers make is failing to prepare written employment contracts, which creates an indefinite-term employment contract. It is also common to terminate verbal contracts on the last day of the year, prepare and pay a settlement for that period, and rehire the employee in the second week of January, believing that this legally ends one contract and begins another. There is also the misuse of an “integral salary” agreement, where an amount higher than the minimum wage is set and it is wrongly assumed that it includes all benefits, so no separate settlements are required.

It should be remembered that for an integral salary contract to exist, it must be in writing and its value may not be lower than the legal threshold applicable for 2022. Similarly, service provision contracts are frequently used in an attempt to avoid payment of different salary and social security concepts. If you have an employee, give them orders, assign a work schedule and pay them for the service provided, what actually exists is an employment contract, which is easy for the employee to prove. It can be said that under a service provision contract, orders are not given and compliance with a schedule is not required.

As a business owner, you should focus your efforts on developing your company’s operations. We take care of labor advice and the correct calculation of your payroll.

Remember that we treat your accounting matter, situation or problem as our own in order to solve it quickly.

310 558 91 17 - 313 821 48 03

Settlement of Social Benefits

The settlement of social benefits must be taken into account when hiring an employee, because obligations arise at the same time as the contract. Some of these obligations are the social benefits to which the hired person is legally entitled. The law defines them as the recognition that an employer must grant to every worker for contributing to the generation of income and profits for companies. Consequently, failure to meet these obligations exposes the employer not only to having to recognize them, but also to severe monetary and even operational penalties.

Every employee is entitled to the legal recognition and payment of a service bonus, severance pay, interest on severance pay, work clothing or equipment where applicable, vacation, transportation allowance if applicable, and other extra-legal benefits. It should be remembered that labor law always seeks to protect the worker and therefore gives full credibility to the worker’s statements.

Observing and complying with these obligations, together with their correct calculation, gives you peace of mind and allows you to require performance from your collaborators.

Contact us with your case for timely advice: 310 558 91 17.

How much does it cost to have an employee in Colombia earning the minimum wage?

Key information

Accounting Bogotá