Payroll Puerto Rico – Updated Puerto Rico payroll filing and reporting requirements
Puerto Rico has a payroll tax withholding. The PR W2 is different from the US W2, so be careful if you file the W2 forms for PR. For more information on payroll tax requirements and fees:
Contact the Treasury Department of Public Relations at:
Department of Finance
PO Box 9024140,
San Juan, PR 00902-4140
Phone: (787) 721-2020
As of 2009, Puerto Rico’s base taxable salary limit for unemployment wages is $ 7,000.00 and for disability is $ 9,000.00. PR HAS a provision for quarterly salaries on magnetic media. For more information on unemployment and disability rates and requirements:
Contact the Puerto Rico Department of Labor at:
Department of labor and human resources
Prudencio Rivera Martínez Building
Cra. Muñoz Rivera 505
Hato Rey, PR 00918
Phone: 787.754.5353
Fax: 787.756.1149
If you need to find a CPA:
College of Certified Public Accountants of Puerto Rico
Phone: 787.754.1950
Fax: 787.753.0212
There is a provision for the minimum wage in PR, and it varies by industry. There is a provision for reporting new hires in PR. Puerto Rico payroll law requires that involuntarily laid off employees receive their final pay before the next regular payday. In addition, the dismissed employee will be entitled to compensation based on the number of months and years worked at the company. There is a meal penalty for employees who work more than 5 hours without taking a meal break.
There is an overtime penalty for employees who work more than 8 hours in a 24-hour period. For example, if an employee starts every day at 9 a.m., and on one occasion starts at 8 a.m., this employee has worked 9 hours in that 24-hour period that started at 8 a.m. and must be paid overtime . There is a premium for employees who work on Sundays. As of 2009, that rate is $ 11.50 per hour.
Sickness and vacation pay is mandatory. The basic rule of thumb is that sick and vacation time increased for employees who worked 115 hours or more in a month. Sick time increases to 1 day per month and vacation time to 1.25 days per month.
The Christmas bonus is mandatory and must be paid before December 15 of each year. The accrual period begins on October 1 and ends on November 30. Any employee (even if laid off) who worked 700 hours or more will receive a Christmas Bonus. As of 2009, the 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 or fewer employees, it is 3% of earnings for the accumulation period up to a maximum of $ 300.