Paraguay Employer Payroll — IPS Planilla & REI Filing

Confirm the employer is registered with IPS and holds a número patronal. Establish the sector (commercial at 9%/16.5% or financial at 11%/17%), verify access to the REI system, and collect the pay period (month/year) so the correct minimum wage floor (PYG 2,899,048 from 1 Jul 2025 under MTESS Resolución N° 677/2025) is applied.

Gather each employee's gross monthly remuneration in PYG, breaking out base salary, overtime, commissions, and any in-kind items. Identify any aguinaldo or family allowance payments in the period — these are excluded from the IPS base. Confirm all amounts are in PYG; refuse to proceed if wages are quoted in USD or another currency.

Compute employee IPS (aporte obrero: 9% commercial / 11% financial) and employer IPS (aporte patronal: 16.5% commercial / 17% financial) on each employee's IPS base. Calculate net pay (gross minus employee IPS; no IRP is withheld by the employer). Flag any employee whose annualised gross exceeds PYG 80,000,000 so they are advised to register for IRP self-assessment via Formulario 515.

Compile the monthly planilla de aporte obrero-patronal in the REI system, entering each employee's IPS base and both contribution shares. The total IPS remittance equals the employee share (9%) plus the employer share (16.5%) combined. Submit and pay by the due date on the IPS Calendario de Pago (Resolución C.A. N° 066/2022); Mora Patronal arises the day after the deadline.

Where the pay period includes December or the employer is settling the annual aguinaldo, compute each employee's entitlement as 1/12 of total remuneration earned in the calendar year (Ley N° 417/73). The aguinaldo is exempt from both IPS and IRP and is unembargable; no deductions are permitted. Payment must be made before 31 December.

Post payroll journal entries: gross wages and 16.5% employer IPS as expenses; 9% employee IPS withheld as a liability until cleared by the REI remittance. Confirm no IRP withholding liability exists. Issue income certificates (certificados de ingresos) to employees who need them for their own annual IRP Formulario 515 filing in March via Marangatú.