Payroll Puerto Rico, Unique Aspects of Puerto Rico Payroll Law and Practice
The Puerto Rico State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:
Department of the Treasury
Bureau of Income Tax
Intendente Alejandro Ramirez Bldg.
Paseo Covadonga, Stop 1
P.O. Box S-4515
San Juan, PR 00905
(787) 721-2020
http://www.hacienda.gobierno.pr/
Puerto Rico has no State Income Tax. Therefore, there are no State W2s to file, no supplement wage withholding rates and no State W2s to file.
The Puerto Rico State Unemployment Insurance Agency is:
Department of Labor and Human Resources
Bureau of Employment Security
Prudencio Rivera Martinez Bldg.
505 Munoz Rivera Ave.
Hato Rey, PR 00918
(787) 754-5262
The State of Puerto Rico taxable wage base for unemployment purposes is wages up to $7,000.00.
Puerto Rico has no provision of quarterly wages on magnetic media.
Unemployment records must be retained in Puerto Rico for a minimum period of five years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.
The Puerto Rico State Agency charged with enforcing the state wage and hour laws is:
Department of Labor and Human Resources
505 Munoz Rivera Ave.
Hato Rey, PR 00918
(787) 754-2119
http://www.dtrh.gobierno.pr/
There is no provision for minimum wage in Puerto Rico.
The general provision in Puerto Rico concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week except under contract, custom, nature of work.
There is no provision of new hire requirements in the Puerto Rico law.
There is no provision of rules for direct deposit for Puerto Rico.
Puerto Rico has no Wage and Hour Law provisions concerning pay stub information except that employees paid by direct deposit must get a voucher showing all deductions.
Puerto Rico requires that employee be paid every 15 days.
In Puerto Rico there are no statutory requirements concerning the lag time between when the services are performed and when the employee must be paid.
Puerto Rico payroll law requires that involuntarily terminated employees must be paid their final pay by next regular payday.
Puerto Rico has no general provision on when voluntarily terminated employees must be paid their final wages.
There is no provision in Puerto Rico law concerning paying deceased employees.
There is no provision of when unclaimed wages should be paid in Puerto Rico.
There is no provision in Puerto Rico law concerning record retention of abandoned wage records.
There is no provision in Puerto Rico law concerning tip credits against State minimum wage.
In Puerto Rico the payroll laws covering mandatory rest or meal breaks are only that all employees must have 1-hour meal period after 3rd and before 6th hour of shift unless agreed otherwise.
There is no provision in Puerto Rico law concerning record retention of wage and hour records therefore it is probably wise to follow FLSA guidelines.
The Puerto Rico agency charged with enforcing Child Support Orders and laws is:
Child Support Enforcement Program
Department of Social Services
P.O. Box 3349
San Juan, PR 00902-3349
(787) 767-1500
Puerto Rico has no provisions for child support deductions.
Please note that this article is not updated for changes that can and will happen from time to time.
Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years, the last fifteen in private practice.
Mr. Read is the author of "How to Start a New Business."
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