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MEXICO PAYROLL-FOOD COUPON-DESPENSA

edited February 2012 in International Issues
We are having numerous issues with how this benefit is processed for Mexico. I have not been able to find anything on how its calculated. Our colleagues in MX have been very little help. We started calculating one way at the beginning of our conversion and it has been changed 6 times, now our auditor who approved it states we are not doing it correctly. Before we make another change can someone tell me how they process this benefit in payroll.

Thanks.

Comments

  • Just curious, if the Auditor can say the way you are doing this is wrong, does that imply that the Auditor knows what is correct?

    If they do not know what is correct, how can they say it is incorrect?

    I would go back to the Auditor and ask to be shown why you are not doing it properly, which should reveal the correct way.

    Just a guess at this point, maybe worth a try.
  • At this point we don't believe anything they say, because they are the same auditors that approved our process two years ago. We just keep going around in circles. I am waiting for other responses before I proceed with this change.

    PrJeff wrote:
    Just curious, if the Auditor can say the way you are doing this is wrong, does that imply that the Auditor knows what is correct?

    If they do not know what is correct, how can they say it is incorrect?

    I would go back to the Auditor and ask to be shown why you are not doing it properly, which should reveal the correct way.

    Just a guess at this point, maybe worth a try.
  • Since I've never done international payroll, I'd never heard of this benefit. But I googled it because I was curious and found a PeopleSoft document ("Global Payroll for Mexico") that discusses it. It says on page 145 that part of it is taxable
    and part is tax-exempt. What are the auditors telling you ?

    http://docs.oracle.com/cd/E15879_01/psf ... -b1110.pdf
  • Thanks for trying to help. I also searched on the internet and I also found that document you are referring to. The auditors stated that if it is paid thru payroll on there check than a portion is taxable but if it is calculated and loaded on a card it is not taxable. The card would be used for them to make only food purchases, but if paid on there check you wouldnt be able to control that, so our location wanted it tax free. Mexico is such a fun payroll to set up!!! I have learned lots of things..
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