When doing business in Mexico, it is important to understand
employment, payroll and tax laws. New Mexican Income Tax
regulations have caused changes in the way employees are paid in
Mexico.
New payroll rules
New regulations affect how payroll is done and issued to
employees in Mexico. The new law outlines a process that all
employers must abide by.
The process of issuing payslips to employees is now fully
electronic. All payroll must go through a process before it can be
issued to the employee. First, the electronic payslips must be
submitted, validated and e-signed by the SAT (Mexican Tax
Authority). To do the process, there is an intermediary called PAC,
the authorized provider of certification. Through the PAC, the
employer sends the payslip information of each employee to SAT,
which then returns the payslips already e-signed also through the
PAC. The payroll must contain personal and job information of the
employee, the bank account number, tax Id (RFC),
