How are taxes and social security contributions paid?

Employer and employee taxes are handled according to the requirements of the Brazilian regulations. These will be clearly outlined in your initial proclaim along with an explanation of how they are calculated. Each month we’ll invoice you, in advance of the payroll date, for what we call the Total Cost of Employment. Total Cost of Employment is the gross salary, bonus payment or allowances to the employee, employer contributions like tax or social security, expense reimbursements and our monthly management fee. Employer taxes (e.g. payroll taxes) and social security contributions are shown as itemized inputs on the monthly invoice and included in our client reporting. When we run our monthly payroll process these amounts are paid to the local authorities as required. Employee individual income tax and social security are deducted (withheld) from the gross salary in the monthly payroll process and then paid to the local authorities as required. These deductions are reported on the employee payslips and their summary reports.