Are technology stipends taxable – When applying discounts for social security contributions or taxes on the worker’s salary, you must be clear about the difference between taxable assets and non-taxable assets since it depends on it that the deductions you make follow the Labor Code and, therefore, respect the finances of your employees.
Establishing the differences between taxable and non-taxable is easy. It’s just a matter of understanding some basic concepts that we will review right now.
Taxable assets correspond to the income the worker receives through salary and gratuity —remuneration— and are subject to social security contributions: AFP, health and unemployment insurance.
To better understand this point, you must consider that Article 41 of the Labor Code defines remuneration as: ” the consideration in money and additional in-kind valued in money that the worker must receive from the employer because of the employment contract .” They are part of these:
The fixed remuneration —in money— that the employee receives in exchange for the services agreed in the employment contract.
The percentage received by the employee on the sales in which he participates directly.
Proportion in the profits of a given business; is agreed upon by the parties and must be stipulated in the Labor Law.
The law obliges companies to pay the employee —at least— 30% of the profits obtained or 25% of what is earned as monthly remuneration.
They correspond to the fulfilment of conditions such as production, goals, punctuality, and seniority, among others.
It refers to the remuneration the worker must receive by law for the days of Sundays, holidays or compensatory rest in which he does not work.
Therefore, remuneration refers to the revenue the worker receives specifically for providing his services. Assignments considered, such as lunch or mobility, are not related to the above.
Are technology stipends taxable How are taxable assets calculated?
This means that to calculate the taxable assets in liquidation, it is necessary to add bonuses, such as overtime, bonuses, commissions and other income, to the base salary. From this total figure, provisional discounts are made, whose percentages are:
- AFP: equal to 10% of the taxable remuneration. However, each administrator —chosen by the worker— can set an additional contribution.
- Health: as stipulated by law, the minimum percentage to discount is 7%; This will depend on the system —NASA (public) or ISA (private) — chosen by the worker.
- Unemployment insurance: corresponds to 0.6% of the tax base.
To better understand how to calculate taxable assets and make a salary settlement, it is convenient that we clarify precisely this pair of concepts.
What is a liquid salary?
It is the one that corresponds to the final amount paid to the worker after making the discounts established in the Labor Code.
In other words, the worker receives a liquid salary after mandatory contributions such as health and AFP.
Are technology stipends taxable What is the gross salary?
The gross salary refers to the amount of money an employee receives before making the corresponding deductions.
To obtain it, add the salaries and pension discounts.
What discounts are made to the gross salary?
Among the discounts applied to the gross salary, the three we have mentioned stand out: AFP, health and unemployment insurance. The latter is a financial protection fund in case of unemployment, which does not correspond to public employees or the armed forces.
Also, those amounts deducted for home savings or payment of loans made by the company are considered.
Calculation of overtime
To calculate overtime, it is necessary to define if the worker is paid per month, day or hour.
If the remuneration is monthly, the value of the hour of work must first be determined. To do so, it is necessary to follow this formula established by law:
- Divide the gross salary by 30 (days of the month).
- Multiply the result by 28.
- Divide by 180 (monthly hours).
- Once this value has been calculated, the legal minimum surcharge for overtimemust be increased, equivalent to 50% or the percentage agreed in the employment contract.
If the worker has a daily salary, the procedure is as follows:
- Multiply the daily wage by 5 (weekly working days).
- Add to the result the additional payment for the week in a row;
- Divide the result by the number of ordinary hours of the weekly shift;
- Increase 50% of the minimum surcharge or the agreed percentage.
In Chile, the inalienable holidays each year are:
- January 1;
- May 1;
- September 18 and 19;
- December 25.
These days, only employees of businesses belonging to entertainment, such as movie theatres and restaurants, can work.
Divide the monthly salary by 30, then multiply by 7.
Divide the result by 45 hours per week and then multiply by 1.5.
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