Argentinian Government’s Mandatory Payroll System to Track Employee Salaries and Other Data

Beginning in August, the Argentinian government will gradually require all employers to use a government online payroll settlement system called Digital Salary Book, to upload, retain, and update their employees’ salary and wage information. This change will also impact how companies deliver work documents to employees.

The Federal Tax Authority (FTA) and the Ministry of Labor had recently published a Joint General Resolution, which will expand the application of the “Digital Salary Book” system to include all employers. The platform was established in 2015 and was adopted by some employers on a voluntary basis.  

The new requirement will change the way employers report employees’ salary and other personal data.

• All employers, whether they previously voluntarily opted for the online digital tool, must now record and report employee’s data imposed by Article 52 of the Labor Contract Law using the digital system known as the “Digital Salary Book.”
  
  
• The obligation to use this system will be established progressively, until it reaches all employers. Employers should prepare for the compliance even though a certain date hasn’t been indicated as the FTA will inform employers that they must use the system at their electronic fiscal domicile.
  
  
• In addition to all the data currently collected, Employers must now also record the recognized seniority date of each of their workers in the “Additional Data” section.
  
  
• The authority of the local administrative bodies in labor matters won’t change. However, the FTA could further ask employers to use the platform for collection of fees for tax purposes.

Javier Sabin, from EY Argentina, emphasized the importance of consistency between the platform and the company’s database and recommend tests before the actual rollout. "Employers must advance in a couple of issues to comply with this obligation. Perform consistency checks between the AFIP web services and the company's databases and they should remedy all the errors found, guaranteeing the validation and correction of the mentioned information."

Outlook: Employers can ask for a trial period before the actual implementation and experts predict most employers will finish the transition by the end of the year.