Payroll Stamping 3.3 and 4.0
Simplify your payroll processes, distribute receipts to employees and maintain the legality of the stamping with the Worky + Zentric integration, the best payroll system in Mexico.
Zentric automatically stamps receipts in both versions 3.3 and 4.0
The basics you should know about Payroll Stamping 3.3 and 4.0
What is payroll stamping?
Payroll stamping is a mandatory process in some countries, such as Mexico, which consists of the electronic validation of the information contained in the payroll of a company's employees.
This process is carried out through the Tax Administration Service (SAT) or other similar governmental entity, and is intended to ensure that the company complies with its tax and labor obligations, as well as to protect the rights of workers.
Payroll stamping involves the issuance of an internet digital tax receipt (CFDI), which is an electronic document containing detailed information on the workers' payroll, including the amount of salaries, deductions and the corresponding tax and social security contributions.
What are the differences between Payroll Stamping version 3.3 and 4.0?
In Mexico, the Tax Administration Service (SAT) has implemented different versions of the payroll stamping system to improve efficiency and accuracy in the issuance of digital tax receipts via the Internet (CFDI). Below are the main differences between payroll stamping version 3.3 and 4.0:
- CFDI structure: Version 3.3 uses a data structure based on the standard digital tax receipt (CFDI) version 3.2, while version 4.0 uses the CFDI version 3.3 data structure.
- New fields and validations: Version 4.0 includes new fields and validations that do not exist in version 3.3, such as the Unit of Measurement Key according to the new SAT catalog, the mandatory description of payroll items and the automatic calculation of the annual ISR (Income Tax) for workers.
- Cancellation scheme: The cancellation scheme of version 4.0 is more rigorous and limits the term for the cancellation of CFDIs, whereas in version 3.3 the cancellation of CFDIs was allowed regardless of the date of issuance.
- Payroll complement: In version 4.0, the payroll complement has been modified and is more complete and detailed, allowing the inclusion of additional information such as the start date of the labor relationship, the type of contract, the tax regime and the working day.
The basics you should know about Payroll Stamping 3.3 and 4.0
In Mexico, there are several reasons why a company should upgrade its payroll to version 4:
Legal requirement: Updating to payroll stamping version 4 is a legal requirement established by the Tax Administration Service (SAT). As of January 1, 2022, all companies that issue payrolls are obliged to use version 4 of the payroll stamping system.
Tax changes: Version 4 of the payroll stamps includes significant tax changes that must be adopted by companies in order to comply with their tax obligations. For example, version 4 includes new fields and validations, as well as a more rigorous cancellation scheme.
Improved information quality: Version 4 of the payroll stamping provides greater transparency and clarity in the labor relationship between the worker and the company. The payroll complement is more complete and detailed, allowing the inclusion of additional information such as the start date of the labor relationship, the type of contract, the tax regime and the working day.
Avoid penalties: Failure to update payroll stamping can result in penalties and fines from the SAT. Therefore, it is important that companies update their payroll software to comply with tax regulations and avoid possible penalties.
When does payroll stamping 40go into effect?
Payroll stamping version 4.0 is already in effect as of January 1, 2021 for companies that so wish, however, the Tax Administration Service (SAT) allowed a period of coexistence between versions 3.3 and 4.0 until December 31, 2021. As of January 1, 2022, version 4.0 became mandatory for all companies issuing digital tax receipts via internet (CFDI) for payroll in Mexico.
It is important for companies to ensure that their payroll software is updated to version 4.0 to comply with tax regulations and avoid possible penalties and fines from the SAT. In addition, upgrading to payroll stamping version 4.0 can improve the quality and transparency of the information contained in payroll CFDIs, providing greater clarity in the labor relationship between employees and the company.
What is needed to stamp payroll version 4.0?
To stamp payroll version 4.0, the following requirements are needed:
An updated payroll software: It is important that the company has an updated payroll software that is compatible with version 4.0 of the payroll stamping.
Registration with the SAT: The company must be registered with the Tax Administration Service (SAT) in order to be able to issue digital tax receipts via internet (CFDI) for payroll.
Current digital certificate: The company must have a current digital certificate in order to sign the payroll CFDIs. This certificate can be obtained through the SAT.
Accurate employee information: It is important for the company to have accurate employee information, such as social security number, salary and tax status.
Knowledge of tax regulations: The company must have adequate knowledge of the tax regulations governing the issuance of payroll CFDIs, in order to comply with its tax obligations and avoid penalties by the SAT.
How to Stamp Payroll in SAT 2023?
The process to stamp payroll in the SAT in 2023 remains similar to previous years. To perform payroll stamping in the SAT in 2023, follow the steps below:
- Register with the SAT: If you are not yet registered with the SAT, you must do so in order to be able to issue digital tax receipts via internet (CFDI) for payroll. To register, you must access the SAT website and follow the steps indicated.
- Obtain a digital certificate: The digital certificate is necessary to sign the payroll CFDI. You can obtain it from the SAT website.
- Generate the payroll CFDIs: To generate the payroll CFDIs, you must have an updated payroll software that is compatible with the payroll stamping version 4.0. This software will allow you to generate the payroll CFDIs in XML format.
- Send the payroll CFDIs to the SAT: Once the payroll CFDIs have been generated, you must send them to the SAT through its online portal. To do so, you must log in with your registration and follow the steps indicated.
- Receive the tax stamp: If the payroll CFDIs are correctly validated by the SAT, you will be sent a tax stamp that you must include in the payroll CFDIs before giving them to your employees.
What happens if I do not use CFDI 40?
If you do not use the Comprobante Fiscal Digital por Internet (CFDI) version 4.0 for payroll stamping, you will be in non-compliance with current tax regulations in Mexico. The use of CFDI version 4.0 for payroll issuance is mandatory as of January 1, 2020 and the SAT has established penalties for companies that do not comply.
Penalties for non-compliance can range from fines to temporary suspension of the company's economic activity, as established in the Federal Tax Code. In addition, failure to comply with tax obligations may generate legal and financial problems that affect the company's reputation and economic stability.
It is important to keep in mind that the CFDI version 4.0 allows greater transparency and better control by the authorities, so its use is not only an obligation, but it can also be beneficial for the company by providing greater certainty in its operations. Therefore, it is recommended that companies comply with this tax obligation and update their payroll stamping processes to version 4.0.
What Happens if Payroll Receipts are not Stamped?
Failure to stamp payroll receipts can have negative consequences for the company and its employees, since it would be in breach of the tax and labor obligations established by law.
In the first place, the lack of stamped payroll receipts may generate tax problems, since the SAT has the power to perform audits and verify compliance with the companies' tax obligations. If it is detected that payroll receipts have not been issued or that they have not been stamped correctly, economic sanctions may be imposed and the obligation to regularize the situation before the SAT may be imposed, which could imply additional costs for the company.
On the other hand, the lack of stamped payroll receipts can also generate labor problems, since employees could demand the payment of salaries that have not been registered and that do not have the corresponding payroll receipts. In addition, in the event of labor disputes or legal proceedings, payroll receipts are essential evidence to prove payments made to workers.
