What is the bonus, when is it paid, how is it calculated: 10 keys about complementary annual salary

In a few hours, President Alberto Fernández, along with Minister Martín Guzmán, Deputy Minister Sergio Massa, and Héctor Daer, one of the leaders of the CGT, will announce improvements to Revenues. After a day full of tension in the matter, and with repeated questions about what will happen to the half bonus (collected in June) related to the tribute, last night it happened that the improvement included half the SAC is not taxed.

In connection with all of the above, as the bonus collection date is approaching, tax expert Sebastián Domínguez has prepared a list of 10 keys to answer all the questions about that bonus that will come in the middle of the year in first stage, and at the end of both the second.

(closed to subscribers) Prior to the Government’s announcement of the new floor where wages will be taxed on Revenues and whether or not it includes the Christmas bonus, tax expert Sebastián Dominguez answers 10 questions about in the SAC.

1) What is the complementary annual salary?

This is one-twelfth of the total wage received by the worker in their respective calendar year.

2) When is it paid?

According to the Labor Contract Lawis paid in 2 installments in the year in which it is accrued. Installment 1: will expire on June 30, 2022, and installment 2: will expire on December 18, 2022. It must be considered that that day is Sunday, and payment must be made without beyond that day. As such, most employers who pay by bank transfer will need to do the same on Friday, December 16, 2022.

In the case of small companies, Law 24,467 of 1995 provides that collective labor agreements may provide for the division of periods. payment of additional annual salary provided that they do not exceed 3 periods in a year.

In other words, only small companies and on the condition that collective agreements are established, they can split the bonus into three stages instead of two.

For example, the following collective agreements consider this possibility:

• Collective Agreement 375/2004 of the rubber and related industries. There, the fees they must be done on April 30, August 30 and December 30 of each year.

• Collective Agreement 389/2004 of the branch of gastronomy, hotels and restaurants: The bonus can be paid in up to 3 periods or times of the calendar year. Each period will be understood over a four -month period and the adopted system must be announced by the employer within the first quarter of each year.

3) How is it calculated?

The amount to be paid each semester is 50% of the maximum monthly wage earned for all items during that semester.

All free items such as social benefits are not included. (the canteen service to the company, the provision of clothes for work and any other elements related to the worker’s clothing and equipment for exclusive use in the performance of their duties, the provision or appropriate documented payment of training courses or training seminars or specialization, etc.), the one -time bonuses, the bonuses associated with the termination of the employment contract, the additional benefits of art. 105 of the Act, etc.

4) Should overtime, commissions and other variable compensation be considered in calculating the complementary annual salary?

Yes, overtime, commissions and all other compensation variable is part of the monthly wage accrued should be considered for the purpose of establishing which is the highest in the semester.

It is not appropriate to make averages of variable compensation.

For example, if the employee has the same fixed pay from January to June and the previous month, worked 30 overtime hours, the amount corresponding to them should be considered in full in the month of June.

Consequently, June will be the month of the highest monthly wage earned which should be taken as the basis for calculating the additional annual salary quota.

5) Should the item “On account of future increases” be considered to calculate the additional annual salary?

Yes, the item “Due to future increases” should be considered because it is an item that includes the monthly salary earned.

6) Should class compensation be considered to calculate the additional annual salary?

Yes, compensation should be considered both in money and in kind.

For example, the amount corresponding to the transfer of use of a car of the company for private use, the amount corresponding to the transfer of use of a cell phone for its private use, etc.

7) What happens when the employment relationship ends in one of the semesters?

When the employment relationship is terminated for any reason (resignation, dismissal, death of the worker, etc.), the worker or the rights holders, if applicable, entitled to receive a share of the proportional supplementary annual salary accumulated in the portion of the semester worked.

The SAC must also be arranged in lieu of payment for the notice, the inclusion of the month of dismissal and vacations not taken.

8) What happens if the employee does not work continuously during the semester?

If during the semester it is proven that there is no paid time of service (maternity leave, unpaid leave, temporary incapacity for work for which non-remunerated monetary benefit is paid, period of leave, unpaid job reservations in accordance with the law of the contract of employment, suspensions due to force majeure or economic reasons, etc.), the complementary annual salary shall be paid in proportion to the time of paid service.

9) Are there additional days to pay?

The art. 128 of the employment contract law establishes that payment will be made when the corresponding period has expired.within the following maximum terms: four (4) business days for monthly or fortnightly salary and three (3) business days for weekly.

We understand that there are no additional days for payment of the complementary annual salary as it does not fit into the monthly, biweekly or weekly salary.

10) Is the Christmas bonus taxed or exempt from income tax?

SAC can have three treatments: fully taxable, fully exempt, partially excluded, and partially taxable. To determine the treatment of SAC, first, it must be established whether the average of compensation and/or total monthly salary for the annual fiscal period exceeds or does not exceed a total of $ 225,937 (even up to Alberto Fernández’s Earnings Announcement)

If the average monthly salary and/or total salary for the annual financial period exceeded $ 225,937, then fully taxed the SAC.

On the other hand, if the said average does not exceed $ 225,937, the SAC is exempt up to that amount.

What has been exceeded so far indicates that the Government will increase this amount at $ 275,000 effective from the month of June 2022.

YNang