End-to-end monthly payroll workflow for Honduran employers and employees: compute IHSS contributions, RAP labor-reserve and above-ceiling savings, INFOP levy, and ISR Art. 22 withholding (Código 111) using the SAR progressive table; produce the planilla, remittance schedules, and the annual Form 102/111 reconciliation.
Gather each employee's gross monthly salary in HNL, confirm employment status (permanent, part-time, maquila/textile), establish the firm's headcount for INFOP eligibility, and identify any workers above the IHSS ceiling. Confirm the applicable tax year so the correct SAR progressive table is used (Acuerdo SAR-007-2025 for FY2025; SAR Comunicado 02-2026 for FY2026).
Calculate monthly IHSS contributions for each employee using the 2025 ceiling of L 11,903.13. Apply employee rate of 5.0% (IVM 2.5% + EM 2.5%) and employer rate of 8.5% (IVM 3.5% + EM 5.0%) plus the sector-specific occupational-risk rate (~0.2%, confirm by industry class). State contributes 0.5%. Amounts above the ceiling are not subject to IHSS but shift to the RAP above-ceiling regime.
Compute RAP in two flows per Decreto 47-2024 (in force 1 Jun 2024): (1) the employer-only labor-reserve at 4% of gross salary, capped at three times the highest applicable minimum wage; and (2) the above-ceiling savings at 1.5% employee + 1.5% employer on salary exceeding L 11,903.13. Then compute INFOP at 1% of total monthly payroll if the firm employs 5 or more staff, due within 10 business days after month-end.
Compute each employee's annual ISR using the progressive SAR table and the flat L 40,000 medical deduction, then divide by 12 for the monthly Código 111 withholding. Apply the correct 2025 brackets (0% up to L 217,493.16; 15% to L 331,638.50; 20% to L 771,252.38; 25% above). Employees with monthly salary at or below L 21,457.76 are exempt. Withholding is remitted to SAR monthly via the Oficina Virtual / DET Live portal.
Produce payslips for each employee showing gross salary, all deductions (employee IHSS, RAP above-ceiling if applicable, ISR Código 111), and net pay. Compile the monthly payroll register (planilla) reconciling all employer obligations: IHSS employer share, RAP labor-reserve, RAP above-ceiling employer share, INFOP, and the ISR withheld. Flag any aguinaldo or 14th-month amounts with the estimated exempt threshold for reviewer confirmation.
Remit each statutory obligation to its respective authority on schedule: IHSS and RAP to their respective institutes, INFOP within 10 business days after month-end, and Código 111 ISR withholding to SAR via DET Live / Oficina Virtual. Retain bank debit receipts for each remittance. At year-end (30 April), the employer must also assist employees who are required to file Form 102 (self-employed or multi-source income) and file the employer's withholding summary.
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Honduras Payroll Contributions & Income Tax (ISR)
Use this skill whenever asked about Honduras payroll contributions, social security, or pe
Honduras Payroll
Use this skill whenever asked about Honduras payroll processing for employed persons. Trig