Payroll Puerto Rico – Updated Puerto Rico Payroll Reporting and Filing Requirements
Puerto Rico has a payroll withholding tax. The PR W2 is different from the US W2 so be careful if you are filing W2s for PR. For more information on payroll tax rates and requirements:
Contact the PR Department of Treasury at:
Departamento de Hacienda
P.O. Box 9024140,
San Juan, P.R. 00902-4140
Tel: (787) 721-2020
As of 2009, Puerto Rico’s taxable wage base limit for unemployment wages is $7,000.00 and for disability is $9,000.00. PR HAS a provision for quarterly wages on magnetic media. For more information on unemployment and disability rates and requirements:
Contact the Puerto Rico Department of Labor at:
Departamento del Trabajo y Recursos Humanos
Edificio Prudencio Rivera Martínez
Ave. Muñoz Rivera 505
Hato Rey, PR 00918
If you need to find a CPA:
Colegio de Contadores Publicos Autorizados de Puerto Rico
There is a provision for minimum wage in PR, and it varies by industry. There is a provision for new hire reporting in PR. Puerto Rico payroll law requires that involuntarily terminated employees must be paid their final pay by next regular payday. In addition, the terminated employee will be entitled to compensation based on number of months and years worked with the company. There is a meal penalty for employees that work more than 5 hours without taking a meal break.
There is an overtime penalty for employees that work more than 8 hours in a 24 hour period. Example, if an employee starts every day at 9 am, and on one occasion starts at 8 am, this employee has worked 9 hours in that 24 hour period that started at 8 am and must be paid overtime. There is a premium pay for employees working on Sundays. As of 2009 that rate is $11.50 per hour.
Sick and Vacation pay are mandatory. The basic rule is that Sick and Vacation time accrue for employees that worked 115 hours or more in a month. Sick time is accrued at 1 day per month and Vacation time at 1.25 days per month.
Christmas bonus is mandatory and must be paid before December 15th of each year. The accrual period starts October 1st and ends November 30th. Any employee (even if terminated) that worked 700 hours or more will receive a Christmas Bonus. As of 2009 Christmas bonus for companies with more than 15 employees is 6% of earnings for the accrual period up to a maximum of $600. For companies with 15 employees or less it is 3% of earnings for the accrual period up to a maximum of $300.