Despite the fall in employment, and the purchasing power of the people, during 2018 more workers, Retired Employees had to pay the income tax. In December 2018, 2,219,616 people were reached by Earnings compared to 2,207,577 of the same month of 2017.
The big jump came in 2016 because, at the end of 2015, Earnings covered 1,175,478 people. Thus, between December 2015 and the same month of 2018, there are 1,044,138 more people taxing the tax, despite the presidential promise that under their government the workers would not pay the “ labor tax”.
The numbers were provided by the Chief of Staff, Marcos Pena, in the report that days ago he provided in the Senate and in Deputies. For 2019, the number of people reached by Earnings is expected to grow again because the non-taxable minimum was adjusted for this year by 28.3. Below what wages and inflation are expected to increase. That's the reason, an Employee should always keep track of his earning and should have copies of the payroll files found.
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In addition, due to the change in the withholding of Income Tax by ANSeS, another 47,600 retirees and pensioners were reached by Earnings for a total withholding of $ 1,600 million.
According to the Congressional Budget Office (CBO) “until December 2018, the minimum non-taxable amount of six minimum wages was applied in Jobs, while from January that minimum is applied per beneficiary. This implies that beneficiaries of two or more assets below the non-taxable minimum would be paid income tax, to the extent that the sum of those assets does exceed the non-taxable minimum. According to CBO estimates, this change implies that some 47,600 people will have to start paying the Income-tax, which will contribute an additional collection of approximately $ 1.6 billion ”.
The official series shows that, as the non-taxable minimum is fixed once a year, the number of taxpayers is increasing throughout the year due to increases in wages and income, even if they are lower than inflation. For example, in 2018 Earnings started in January with 1,878,757 people sign in immediately in fear and closed December with 2,219,616. The same happened in 2017: it started in January with 1,883,114 and ended the year with 2,207,577.
This increase occurred despite the fact that register employment fell and in real terms, the income of workers, and also of Retired Employees, had a significant reduction through higher inflation. That is, with fewer people with income and with a lower real income, more people went on to pay this tax during the year.
According to the Ministry of Production and Labor, the gross wages of register private workers increased by 34% compared to an inflation of 47.6%.
In addition, the number of public and private workers Registration decreased during 2018 by 138,400 people and that of the self-employed by 6,600 people, according to official figures.
Court ruling This year, single people with a net income (after Retirement and social work discounts) of more than $ 39,000 and those married with two children with more than $ 50,000 are paying Earnings.
Retired Employees and pensioners pay Earnings from an income equivalent to six minimum wages, the amount that varies during the year for quarterly adjustments. In January and February, the non-taxable minimum was $ 55,854.60, while since March it rose to $ 62,462.20.
Days ago, the Supreme Court accepted the claim of Retired Employees from Entre Ríos to stop paying the tax. But for that benefit to be extended to the rest of the almost 300,000 retirees and pensioners who are deducted from Earnings, a law passed by Congress is required.
As for the amount on which the discounts are applied, the estimated average rate for the fourth category that includes employees in relation to dependency and retired-pensioners Forgot Password is around 25% of the salaries. That percentage discount is applied to the excess of the non-taxable minimum and other deductions.
Workers, Retired Employees and food pensioners must receive Christmas bonus
The Christmas bonus or thirteenth salary of the year must be paid until December 24 of this 2019 to those who have requested the accumulation of this benefit. Private workers in a dependency relationship, public employees, Retired Employees and food pensioners are entitled to this payment.
Since 2015, through Ministerial Agreement No. 0087, it was established that this incentive can be delivered through two modalities: monthly or accumulated. To establish the payment mechanism, the beneficiary has to make a request where he must indicate the way in which he wishes to receive this amount on the Official Website portal. That specific document must be delivered to the employer during the first 15 days of January.
In the event that, for example, you have received the accumulated bonus in 2019 and decide to change the mode, you will have to place an order again login username. This process must be done from January 1 to 15, 2020.
For the private sector, governed by the Labor Code, this incentive is calculated by adding the basic remuneration, overtime, commissions and any type of compensation received from December 1 of the previous year until November 30 of the current year. That is, it represents the twelfth part of all payments received during a year. In this calculation, profits, reserve funds, per diem and fourteenth salary are excepted, according to article 95 of that Code.
On the contrary, for the public sector, which is regulated by the Organic Law of Public Service, this payment is calculated in the same way, but overtime or supplementary hours that have been canceled during that period are not counted.
For the Retired Employees and pensioners of Montepío of the Ecuadorian Institute of Social Security, of the Institute of Social Security of the Armed Forces of Ecuador and of the Social Security Institute of the National Police, the value received will be equivalent to that of the monthly pension. And people who cancel alimony must make the payment of the same monthly value established in the legal process.