This complete global solution for HR professionals combines custom research, strategic white papers, country primers, webinars, and the expert guidance you’ve come to expect from...
By Ed Taylor
Jan. 21— Brazil's tax department altered its policy regarding the calculation of employer job accident insurance rates Jan. 5, the second time in two years it has done so.
Companies in Brazil are required to pay for accident insurance provided by the social security ministry. The rate for this insurance varies from 1 percent to 3 percent of payroll depending on the degree of risk associated with the work performed.
A 2009 tax department ruling said that for companies with multiple units, the rate for all of them would be that of the unit with the highest rate. This meant that if a company had a unit with a low risk rating of 1 percent and another with a high risk rating of 3 percent, it would have to pay the 3 percent rate for both units.
In February 2014, the tax department issued Normative Instruction 1453 changing this policy and allowing companies to pay separate insurance rates based on the risk level of each unit. Companies were then given the option of a single rate for all units or separate rates for each unit, whichever was more advantageous. The single rate would be based on the rate applicable to the largest number of company employees. If a majority of the company's employees, including all units, had a low risk rating, the single rate would be set at 1 percent.
Now, however, the tax department has again changed its policy, requiring employers to apply separate rates for each unit. This is likely to hurt employers whose overall situation is one of low risk but which have individual high-risk units.
According to attorney Alessandro Mendes Cardoso of law firm Rolim, Viotti & Leite Campos, the most recent decision requires employers to pay careful attention to the operations of each unit to determine their level of risk.
The new rule will also be applied to the calculation of the accident prevention factor on which insurance premiums are based, according to Cardoso, which ranges from 0.5 percent to 2 percent of payroll depending on a company's safety record.
To contact the reporter on this story: Ed Taylor in Rio de Janeiro at firstname.lastname@example.org
To contact the editor responsible for this story: Rick Vollmar at email@example.com
For more information on Brazilian HR law and regulation, see the Brazil primer.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)