Puerto Rico Payroll – Updated Puerto Rico payroll reporting and filing requirements

Puerto Rico has a payroll tax. The PR W2 differs from the US W2, so be careful when submitting W2s for PR. For more information on payroll tax rates and requirements:

Please contact the Finance PR department at:

Ministry of Finance

PO Box 9024140,

St John, PR 00902-4140

Tel: (787) 721-2020

As of 2009, Puerto Rico’s taxable wage base limit for unemployment wages is $7,000.00 and for disability wages is $9,000.00. PR HAS provision for quarterly wages on magnetic media. For more information on unemployment and disability rates and requirements:

Contact the Puerto Rico Department of Labor at:

Labor and Human Resources Department

Prudencio Rivera Martinez Building

Av. 505 Munoz Rivera

Hato Rey, PR 00918

Phone: 787.754.5353

Fax: 787.756.1149

If you need to find a CPA:

College of Certified Public Accountants of Puerto Rico

Phone: 787.754.1950

Fax: 787.753.0212

There is a minimum wage provision in PR, and it varies by industry. There is a provision for reporting new hires in PR. Puerto Rico’s payroll laws require involuntarily terminated employees to receive their last paycheck on the next regular payday. In addition, the dismissed employee is entitled to compensation based on the number of months and years that he has worked for the company. There is a meal bonus for employees who work more than 5 hours without taking a meal break.

There is an overtime penalty for employees who work more than 8 hours in a 24-hour period. Suppose an employee starts every day at 9:00 AM and starts once at 8:00 AM, then this employee worked 9 hours in that 24-hour period that started at 8:00 AM and must be paid overtime. There is a surcharge for employees who work on Sundays. As of 2009, that rate is $11.50 per hour.

Sickness and holiday pay are mandatory. The basic rule is that sick and vacation time accrues for employees who have worked 115 hours or more in a month. Sick leave accrues 1 day per month and Vacation time 1.25 days per month.

The Christmas bonus is mandatory and must be paid before 15 December each year. The accrual period starts on October 1 and ends on November 30. Any employee (even if laid off) who has worked 700 hours or more will receive a Christmas bonus. As of 2009, for companies with more than 15 employees, the Christmas Bonus is 6% of accrual period earnings up to a maximum of $600. For companies with 15 employees or less, it is 3% of accrual period earnings up to a maximum of $300.