Brazil Payroll Services

At Bradford Jacobs, we navigate the administration of the Brazilian payroll system for you. We do the work, so you do not have to.

Brazilian Payroll

Brazil is the largest nation in Latin and South America and the world’s fifth largest in land mass, occupying almost 50% of the entire South American continent. The largest economy in the region, Brazil’s Gross Domestic Product in 2021 was 1,646 billion US$, placing it 12th in the world.

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Mining, agriculture and manufacturing are at the heart of its economic force. An emerging player in the world economy, Brazil is rich in natural resources with gold, iron ore, nickel, niobium (used in jet engines and construction), tin and other rare earth elements. Brazil is expected to be a dominant global supplier of raw materials by 2050. And, of course … there is coffee. Brazil is the world’s largest producer and reckoned to account for 40% of global consumption.

Bradford Jacobs’ Professional Employer Organisation (PEO) and Employer of Record (EOR) platforms and networks provide complete answers to every question your company will encounter before you move into Brazil’s economy.

Bradford Jacobs are the experts you need at your side. Our specialists become your employees’ effective employer for all these issues, while they remain under your daily operational control. We have the answer for every question … and solutions for every issue.

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Available Brazilian Payroll Options

  • Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in Brazil to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
  • Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Brazil. However, this does require hiring dedicated HR staff who understand Brazilian employment and compliance laws.
  • Brazils’ payroll processing company – If you are considering outsourcing, then working with a Brazilian payroll company will help in processing your payroll – but not when it comes to compliance.
  • Brazils’ payroll outsourcing – However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Brazil. We take the administrative stress off your shoulders so you can focus on what you do best.

Foreign companies moving their international operations into Brazil open potential markets throughout South and Central America. Challenges come alongside the benefits, however. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in Brazil. Employment laws, payroll and multiple levels of income tax regulations are areas where you cannot afford mistakes – and the demands are even greater where foreign companies establish a subsidiary as their route into Brazil.

The typical choices are a limited liability company (Sociedade Empresária a Limitada) or a corporation (Sociedade Anônima). Taking the step of opening a subsidiary in Brazil in order to run payroll requires an in-depth knowledge of employment and tax registration, as well as regulations for registering employees and reporting their status with the authorities. These include:

  • The digital eSocial accounting system is used by the employer to carry out all registration procedures.
  • Registration with the Federal Revenue Service (Receita Federal do Brasil, RFB).
  • Registering with the Social Security Institute (Instituto Nacional do Seguro Social, INSS) for social insurance and the Social Integrated Program (Programa de integração Social).
  • Obtaining the Cadastro de Pessoas Físicas, (CPF) number from the RFB, assigned to all Brazilian citizens and resident aliens who pay taxes.
  • Employers must use the eSocial system to report any withholding income tax; all types of leave, including sickness; family allowances; unemployment insurance; contributions to the Employees’ Severance Indemnity Fund, Fundo de Garantia do Tempo de Serviço, (FGTS).
  • Employees’ eSocial registration must be at least one business day before they commence work, and within 10 days of the end of employment.
  • Record the employment contract in the Work and Social Security Card (Carteira de Trabalho e Previdência Social, CTPS), preferably digitally, which belongs to the employee, and complete all employee’s data in the employer’s system.
  • Log the hiring on the General Register of Employed and Unemployed (Cadastro Geral de Empregados e Desempregados).
  • Employment of foreigners must be submitted to the Ministry of Labour.
  • At the same time as registration, employers must submit identification documents for the employee as well as pre-employment documents regarding such as any required medical examination.
  • All information relating to the employees’ tax and social insurance is combined on the DCFTWeb, which employees can access via the Digital Workbook from the Ministry of Labor (Ministério do Trabalho, MTE)website or smartphone app.
  • To maintain compliance and avoid fines, employers or their payroll providers should digitise as many of their payroll processes as possible as the eSocial platform is exclusively electronic.

Foreign companies establishing a subsidiary in Brazil in order to hire staff and control their payroll operation typically choose between two options – a limited liability company (Sociedade Empresária a  Limitada) or a corporation (Sociedade Anônima). The limited liability company is generally covered by the Civil Code, whereas corporations also come under the Corporations Act and some provisions of the Code. Public sector entities also come under regulations of the Securities Exchange Commission (CVM).

Many bureaucratic hurdles are in the way of foreign companies establishing a legal entity in the country. Registration and requirements for setting up a limited liability subsidiary, for example, include:

  • Obtain the company’s Cadastro Nacional de Pessoas Jurídicas (CNPJ) 14-digit number from the National Registry of Legal Entities or from individual State Board of Trade (Junta Comercial do Estado.
  • Register the unique company name with the relevant State Board of Trade.
  • Requirements include completing the Documento Básico de Entrada (DBE) application form for the CNPJ, obtained from the FRB; completing the Ficha Cadastral da Pessoa Jurídica (FCPJ) form; listing managers and partners.
  • The CNPJ number is compulsory and an individual number must apply to each entity or branch.
  • The CNPJ is logged with the Federal Revenue Service (Receita Federal do Brasil, RFB) database.
  • Obtain the Inscrição Estadual (IE) 12-digit number when companies collect or pay State taxes on goods and services.
  • To obtain the IE, notarized documents include: Proof of office ownership or lease agreement; Articles of Association; ID documents, such as passports, of owners or partners; power of attorney for local legal representative; proof of residency of partners or owners.
  • A business license (Alvará de funcionamento) must be obtained from the relevant municipal office (Secretaria Municipal da Receita e do Patrimônio Público Imobiliário).
  • Articles of Association are registered with the State Board of Trade (Junta Comercial do Estado.
  • Legally, there is no requirement for minimum capital for a limited liability company unless a foreigner is expected to be the manager of the Brazilian In this case a minimum capital of BRL 150,000 (€27,615, US$27,990)is needed plus the commitment to create 10 employed positions within two years. Alternatively a paid-in foreign capital of at least, BRL 600,000 (€110,500, US$111,960) is required for visa purposes.

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