The recent update of the employment subsidy published last May 1 of this year, brings with it important changes in the fiscal landscape for workers. The progressive increase in the minimum wage has generated the need to modernize this fiscal support mechanism.
This update not only seeks to adapt to changes in the labor and economic market, but also to ensure a more equitable distribution of tax benefits among taxpayers.
The monthly subsidy is now granted to workers whose monthly income does not exceed $9,081.00.
This subsidy is deducted from the income tax that these workers must pay each month. However, there are some exceptions, such as seniority bonuses, retirement benefits, and indemnities, which are not included in the monthly income to calculate this subsidy.
If the tax owed by the worker is less than the monthly employment subsidy received, the difference cannot be used to reduce future tax payments. Additionally, no additional amount will be received as an employment subsidy.I
It is also important to note that the employment subsidy is not considered taxable income, and mechanisms have been established for its application in different situations, such as payments for periods shorter than a month or lump-sum payments covering multiple months.
Do you have any questions about how this update affects your tax situation? The tax team at Vega, Guerrero & Asociados is ready to address your concerns and ensure that you are informed about all the fiscal changes affecting you.
