The collection of employees’ tax, social security and labor information and the reporting of that information to the government is undergoing a significant transformation in Brazil, leaving employers operating in the country a closing window to ensure the information they have is ready for transmission.
The Brazilian government’s ambitious recordkeeping transformation project, known as eSocial, will streamline the transmission of employment-related data to various federal government institutions, including the internal revenue service, the social security institute, the labor and employment ministry and the government bank that manages the national employee savings fund system.
It will increase the ability of the government to inspect employment records by creating a single point of reference for employees and employers to monitor tax and labor obligation information.
Information that up to this date were not routinely registered are now required, procedures for admitting new employees and records of working hours that are not completely compliant with the law must be changed and new information and records in relation to health and safety adopted.
FINES ONLINE AND IN REAL-TIME
The system will give the government something closer to real-time intelligence on labor markets, and allow inspection agencies to monitor and audit employers.
Government audits will no longer be conducted in person, unless you’re under investigation. They will be done electronically, and much more frequently than they are today. It is important to point out that failure to comply with obligations willautomatically generate hefty fines, since the single delivery system is also intended to help various institutions find irregularities such as missed deadlines, miscalculations and inconsistent declarations in real-time. And that any inconsistency may result in a retroactive audit of the past 5 years.
Here are some examples of how much will it cost your company not to comply with this new regulation:
– Not input hiring data prior to starting date – from 120 USD to 240 USD per employee
– Missing Changes in Labor contract or Employee data – from 60 USD to 120 USD per missing data
– Missing Medical examination – from 120 USD to 1200 USD per missing data.
– Missing employee records of unhealthy/hazardous working conditions – from 560 USD to 56.000 USD, depending on severity.
– Missing or wrong work leave data (Illness, maternity leave, vacation) – from 560 USD to 56.000 USD per missing data.
HOW WE CAN HELP YOU
We audit, recommend and execute – why pay someone to audit your processes and spend more later to have someone executing the changes? We do it all! See how we can help you:
· Validate current employee information – review of employment files and labor practices, and correction of any mistakes or discrepancies.
· Update company records and those of employees – Map, validate and table-match the payroll system; and identify possible inconsistencies in order to adjust these entries to be compatible with eSocial
· Collect and input of missing files/data – once we identify what is needed, we will make sure the right data is available, whether in your system or paper file.
· Legal support in case of government audit – we will make sure you are fully supported in case of a government audit.
· AND IF WE MISS SOMETHING AND YOU GET A FINE FOR IT, WE PAY!
We also validate and update security events and Occupational Medicine (SMT): Occupation Health Certificate (ASO), Control Program Occupational Health (PCMSO), Program for Environmental Risk Prevention (PPRA), Labor Accident Communication (CAT), Social Security Professional Profile (PPP) and in partnership with the company’s SMT provider, ensure the correct sending of events related to this topic.