29 June 2009

Social Security Taxes (Cargas Sociales)

Social Security Taxes or cargas sociales are the primary non-wage cost component of employing Argentine workers. The taxes are paid by employers and employees and they are mandatory.

The company must retain 17% of the employee's gross wage as the employee's contribution to social security. The employer is responisble for making the payments and serves as the retention agent for the government.

Small companies pay 23% of the employee's salary while large companies must pay 27%. These contributions are in addition to the discounts made from the employee's gross salary.

The total charges, 40% for small companies and 44% for large companies, are paid on a monthly basis. It is important to note that for all intents and purposes, the entire 40% charge falls on the shoulders of the employer. When hiring an employee, the only thing employees will be asking is how much they will be paid net of all deductions (en mano as they say here).

1 comment:

  1. How do you bill your clients for services without them retaining 33%. Just billed my client in Argentina(large S.A.) for consulting services in the US and they withheld. I am a US sole proprietor with invoices from the States so I dont know why they have to retaing for services performed outside of Argentina. I do have my own Argentinian S.A. which can emit a Factura "A" but once the money hits that account how do I get it to my personal account in the U.S..
    From what I here even if they pay my Argentinian S.A. they would still have to withold?