Ecuador Employer Payroll — Rol de Pagos, IESS Planilla & Formulario 103

Collect and verify all employee master data needed for the payroll run. Confirm each worker is properly affiliated with IESS (Aviso de Entrada filed from day one) and classify them correctly (private-sector dependent, public-sector, or voluntary affiliate). Establish the materia gravada (contributable remuneration) for each employee.

Calculate each employee's net pay using the annual IR projection method. Deduct the IESS personal contribution (9.45% of materia gravada, floor 1 SBU) first, then project the annual taxable income, apply the progressive IR table (2025 tax-free base USD 12,081; 2026 base USD 12,208), and divide annual tax by 12 for the monthly withholding. Exclude décimo tercero, décimo cuarto, and fondos de reserva from both the IESS base and the IR projection — they are exempt.

Prepare the formal rol de pagos (payslip) for each employee showing: gross salary and habitual remuneration, IESS aporte personal (9.45%), IR retención, any other authorised deductions, and net pay. The employer-side IESS aporte patronal and benefit accruals must also be documented. Obtain employee acknowledgement (physical or digital signature).

Log in to the IESS online system and file the monthly planilla combining employee aporte personal (9.45%) and employer aporte patronal (11.15%), plus fondos de reserva (8.33%) for eligible workers. Payment must reach IESS within 15 calendar days after month-end — lateness triggers mora patronal interest and fines. Retain the planilla receipt as evidence of compliance.

Remit the income-tax withholding (retención en relación de dependencia) collected from employees to the SRI using Formulario 103. The deadline is determined by the noveno dígito (9th digit) of the employer's RUC, typically falling in the second and third weeks of the following month. Zero-withholding months still require a nil Formulario 103 if the employer is registered as a withholding agent.

By the end of January each year, issue Formulario 107 (annual employment-income and withholding certificate) to every employee. Reconcile the total IR withheld across all 12 Formularios 103 against the sum of all Formularios 107 issued. Employees who had only employment income may rely on Form 107 instead of filing Formulario 102A separately. File the décimo tercero and décimo cuarto payment reports with the Ministerio del Trabajo via the SUT platform after each statutory payment deadline.