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How does Esocial work?

Reading time: 06 minutes

Every HR professional knows that the routine of ancillary obligations in the labor area consumes precious time.

Knowing this, and with a view to increasing the inspection of this type of information, the Federal Government implemented eSocial for companies.

This project aims to integrate the various labor, social security and tax obligations into a single control and information delivery system.

In this post, you will better understand what eSocial is, what it is for and how it affects the routine of HR departments and also of companies and domestic employers.

In addition, you will know the deadlines for adopting the system and the fines and penalties in case of non-compliance with the dates. Come on?


What is eSocial?

The Digital Bookkeeping System for Tax, Social Security and Labor Obligations (eSocial) is a project of the Federal Government that aims to integrate the data generated by companies with regard to accessory labor, tax and social security obligations, such as INSS payment, FGTS and sickness allowance, among others.

The eSocial project is of such magnitude and complexity that it is a joint action of different bodies and entities.

Among them we can mention: Secretariat of the Federal Revenue of Brazil – RFB, Caixa Econômica Federal, National Institute of Social Security – INSS and Ministry of Labor and Employment – MTE.

When the implementation of the project is completed, eSocial will transform into a unified digital payroll system, through which the company will provide all relevant data to workers to Organs aforementioned agencies.

This will facilitate process management, improve data security and also provide the Federal Government with more accurate information regarding the movement of workers in the labor market.

In addition, eSocial for companies has the great objective of avoiding tax evasion and guaranteeing workers the receipt of their labor and social security rights.


Why was eSocial created?

It was thought to simplify the delivery of obligations, since the documents are now gathered in a single system and online.

These documents are:

  • Annual List of Social Information (RAIS);
  • Declaration of Withholding Income Tax (DIRF);
  • FGTS Company Collection and Social Security Information System (SEFIP)
  • General Register of Employed and Unemployed (CAGED).
  • This gathering of documents in the system avoids duplicate account rendering and data inconsistencies.

It emerged in 2014 to consolidate the database of the Ministry of Labor, Federal Revenue and Caixa Econômica Federal and had as its main objective: to improve the way companies pass on their information to the government.


Who should join eSocial?

Every company or individual that hires service providers must register with eSocial, as long as this hiring results in labor, social security or tax obligations.

This means that, in addition to the point control of the domestic employee, individual employers must also send information through eSocial and be aware of the deadlines for sending the data.

In the case of corporate employers, companies of different sizes, sectors of activity and billing values ​​must join the eSocial.

Microenterprises (ME), Small Enterprises (EPP) and Individual Microentrepreneurs (MEI) with an employee must also send their accessory information through the new system.

In order to register companies and service providers in eSocial, it is necessary to inform their identification data and the activities developed, such as CPF, CNPJ, NIS, PIS / PASEP, income tax declaration and social contract, among others.

Changes for micro and small businesses On the old platform, small businesses were not required to join the system. However, since January 2020, micro and small companies have been inserted directly into the system.

In order for the program to be suitable for these companies, a specific platform was created for small, medium and large companies.

In addition, employers of Simples Nacional, including the Individual Microentrepreneur (MEI), are also required to use the platform and enter their data.

When the news that eSocial was going to be revamped was released, many people thought that the platform would be completely extinguished.

However, what actually happened was the division of the system. Now, there is a system for the IRS and another for Labor and Welfare.

This decision came from the intention to simplify and facilitate navigation on the platform, as we now have a more specific separation of tax, labor and social security obligations.


What is eSocial for? What obligations does the system replace?

Now that you know what eSocial is, you must be wondering what it is for and what obligations this project replaces.

About 15 documents that were previously delivered separately and in different ways are now unified in eSocial. Are they:

DIRF – Withholding Income Tax Declaration;
GFIP – FGTS Collection Guide and Social Security Information;
CAGED – General Register of Employed and Unemployed;
RAIS – Annual List of Social Information;
Employee Registration Book;
Payroll;
Work Schedule;
MANAD – Digital Files Regulatory Manual;
PPP – Social Security Professional Profile;
GRF – FGTS Collection Guide;
CAT— Work Accident Communication;
CD – Dismissal Communication;
GPS – Social Security Guide.


How does eSocial work?

With eSocial, data that was previously sent separately and by different means, such as paper or digital, to different agencies, is now unified.

This means that companies will have to send labor, social security and tax data in digital media, through eSocial, in terms that vary according to the type of obligation.

The admission of employees, for example, must be signaled up to one day before the date of admission.

Disconnections and prior notices, in turn, must be sent by the system within 10 days from the date of termination or communication of the prior notice.

The period for signaling leave, on the other hand, varies according to the reason for the leave.

Companies need a digital certificate to sign electronic documents and be able to send them through eSocial.

This digital certificate must be issued by an organization authorized by the Brazilian Public Key Infrastructure (ICP-Brasil).

The measure is not valid only for domestic employees, MEIs, special insured and Micro Companies (ME) and Small Companies (EPP) opting for Simples Nacional and with even one employee. In this case, you do not need a digital certificate to access eSocial.


What are the eSocial penalties and fines?

Failure to meet the eSocial deadlines can generate observations and fines for companies.

Therefore, it is very important that organizations prepare for the adoption of the system, both by structuring efficient processes and adopting systems that facilitate the registration and organization of the data that needs to be sent.

Lack of registration of hiring employees, changes in registration data and lack of medical exams, among others, are some of the reasons that can result in fines for companies, similarly to what happened before the implementation of eSocial.

The fine for lack of medical exams can vary between R $ 402.53 and R $ 4025.33 per employee.

The omission of temporary leave data, on the other hand, can reach up to R $ 181,284.63.

The fine for omitting data on occupational accidents can vary between the minimum and maximum contribution salary limits and can double in the event of a repeat offense.


Final considerations

If your company is not yet prepared to adopt the Federal Government’s digital payroll, pay attention to the deadlines for not suffering fines and penalties!

Do you want to know more information about eSocial? Click here and download the Complete Manual! [updated 4/27/2021]

Source: Blog Tangerino

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