It is often confused with a bonus or as a „big tip”. However, that is something else. On the one hand, this gift of money made at Christmas acts as an incentive – which is not mandatory for the employer to deliver it – and on the other hand, tipping is mandatory and the employer cannot ignore it. As mentioned above, businesses are required by law to pay tips if they meet the three requirements above. But what about new tax systems and simplified accounting? For the legal benefit to be enforceable, the following requirements are necessary: finally, when calculating the legal benefit, companies depend on their type of accounting and tax system, but also on the profits they make, whether or not they are looking for profits, and, above all, on the modality that the employer negotiates with his employee in the contract. In this context, when we distinguish the types of accounts, we must pay attention to how the legal advantage is applied in the provision of Article 14 D No. 8, because if we start with the analysis of the standard, it would be in the possibilities with which Article 14 ter, which was intended for SMEs with simplified accounting before the tax reform, has been generated. The legal benefits of a company in Chile are legal in nature and must be paid by the employer. They consist in the recognition of the work of employees by a benefit in their remuneration. You should know that it cannot exceed 4.75 of the minimum monthly income. To do this, you need to know the value of the minimum income as of December 31 of the previous year.
The employer must add up the total remuneration received by the employee during the year and calculate 25% of this amount. Once the amount is reached, the employer compares this amount to the minimum monthly income of 4.75. In the event that the result obtained was higher than 4.75, only 4.75 will be paid, because this is the limit. Otherwise, if it is less than 4.75, the employer must pay the difference to reach the minimum monthly income amount of 4.75. In this case, if a monthly salary is cancelled without indicating a ratio to annual profit, a calculation is made taking into account the employee`s base salary, overtime and taxable bonuses. A sum of each amount is paid and multiplied by 25%, which gives the amount of the statutory gift. Employers or enterprises intending to make a profit (with the exception of cooperatives) are required to pay premiums to their employees in proportion to at least 30% of profits. Some companies choose to pay the fraction monthly, by dividing the total amount by 12, you get the amount that needs to be added to the employee`s salary, including the tip, which is $138,541 as a ceiling per month, regardless of the employee`s salary. It is also important to note that this obligation is annual, so the monthly payment of these tips is not mandatory.
If they are paid annually, this must be done no later than April following the end of the fiscal year. The tip is calculated on the basis of everything that counts as compensation. Bonuses, commissions and overtime are taken into account. Now that you know how business satisfaction works and how the analysis should be carried out on the basis of the new tax regimes, you might be interested in: „Tax accounting: everything it takes into account! The bill (initially introduced in 2019) has progressed slowly, but a version of the bill recently approved by the Chamber of Deputies and currently under consideration by the Senate is expected to become law. Of the companies surveyed by WTW, about 73% offer employees some form of guaranteed bonus (30% of discounted net profit of 10% of equity) in accordance with legal requirements. Employers should monitor the evolution of the legislation and consider how these changes would affect tips as well as alternative premiums. It is governed by Article 47. As part of this payment, the employer must pay as a bonus 30% of the profit that the company generates in its industrial park. According to the TD, „the amount corresponding to the employee is determined in proportion to what each worker acquires during the given annual period, including what he is not entitled to”. This means that all consideration and additional money corresponding to the employee`s contract must be included.
This system is one of the most commonly used by companies and the most commonly seen when withdrawing bonuses. To calculate the value of the tip, you must receive the value of 30% of the profit and divide it by the total compensation accumulated in your business. You must multiply the result obtained by the remuneration of each individual employee of your company and thus obtain the legal satisfaction that corresponds to each individual. Here you can see a more detailed example of the concrete calculation of a payment by the proportional distribution system. There are differences in the application of the bonus according to the types of enterprises, where the legal conditions are governed by article 42 of the Labour Code. On the other hand, the remuneration system complies with article 50 of the Labour Code, which provides: „The employer is exempt from the obligation to pay tips proportional to the profits of the enterprise during the financial year concerned, provided that he pays the employee 25% of what has been accumulated as remuneration during the same period”. This means that the employer must pay 25% of what the employee receives as remuneration in a year. Of course, with an upper tip limit, which corresponds to 4.75 months of minimum income. Article 50 of the Labour Code stipulates that the statutory benefit is a bonus with a maximum limit of 4.75 million minimum monthly income (IMM).
In other words, whether or not the calculation takes precedence over the minimum income above 4.75 with the calculation at the end of the previous year, the time of reimbursement is calculated with a limit of 4.75. If the calculation is lower, it corresponds to the calculation after 25%. To determine the value of the tip, the employer must add up the monthly salary earned by the employee during the year and calculate 25% of this amount.