End-to-end employer payroll workflow for Guatemala: computes monthly ISR withholding (RetenISR) under Decreto 10-2012 using the 5%/7% progressive schedule, deducts IGSS cuota laboral (4.83%), applies employer cuota patronal (12.67% = IGSS + INTECAP + IRTRA), accounts for the Q250 bonificación incentivo, and provisions Bono 14 and aguinaldo. Produces a payslip, IGSS planilla, and SAT RetenISR remittance for each pay period.
Collect all employee and employer data needed before any computation. Establish residency status (resident vs non-resident — determines progressive 5%/7% vs 15% flat rate), confirm the economic circumscription (CE1 = Department of Guatemala; CE2 = other departments), and sector (non-agricultural, agricultural, or export/maquila) to validate the minimum wage under Acuerdo Gubernativo 256-2025. Register the employer with IGSS if not already registered (threshold: 1 worker; deadline: 30 business days).
Determine which deductions the employee is entitled to claim so that the annual ISR projection is accurate from the first monthly withholding. The standard Q48,000 personal deduction (sin comprobación) is always granted. The IVA credit (up to Q12,000/year) requires tax invoices (facturas) — default to Q0 if unproven. Collect any confirmed donations or life-insurance premiums. Note the pending Decreto 13-2026 Q3,024 extra deduction as a research gap that cannot yet be applied.
Run the monthly payroll calculation following the Decreto 10-2012 withholding order: annualise the base salary, subtract all confirmed deductions, apply the 5%/7% ISR bracket, divide by 12 for the monthly withholding, then deduct IGSS cuota laboral (4.83%). Add the Q250 bonificación incentivo on top of net salary (excluded from the IGSS base per Decreto 78-89). For non-resident employees apply the 15% flat definitive rate on gross with no deductions.
File and pay the monthly IGSS planilla covering both the withheld employee cuota laboral (4.83%) and the employer cuota patronal (10.67%), plus the INTECAP (1%) and IRTRA (1%) levies on the same salary base (ordinary + extraordinary, excluding the Q250 incentivo). The combined employer levy is 12.67% of the contribution base. Late registration or payment triggers IGSS mora surcharges — escalate arrears to a licensed accountant.
Remit the monthly ISR withheld on employment income to SAT via the RetenISR (Sistema de Retenciones Web — ISR) portal. Non-resident withholding must be remitted within the first 10 business days of the month following payment. At year-end (December), complete the final settlement (liquidación) applying all deductions and reconcile against amounts withheld year-to-date; issue each employee a constancia de retención within 10 business days of the final settlement.
Run this workflow in your AI agent
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Guatemala Payroll
Use this skill whenever asked about Guatemala payroll processing for employed persons. Tri
Guatemala Social Contributions (IGSS) & Payroll Income Tax (ISR)
Use this skill whenever asked about Guatemala social-security contributions (IGSS) and pay