Venezuela Employee Payroll — AR-I Withholding, IVSS & FAOV

Collect all compensation components for each employee and classify them as salary (salario) or non-salary bonus. This is the most critical step in Venezuelan payroll: the Bono de Guerra Económica (currently US$120/month) and Cestaticket Socialista (US$40/month) are legally non-salary and must be excluded from all IVSS, Paro Forzoso, FAOV, INCES, and ISLR bases. Only the contractual bolívar salary (salario base) enters the contribution and withholding calculations.

Collect or estimate the ISLR withholding percentage for each employee using Form AR-I (filed by the employee to the employer before the first payment of the year). The employee declares estimated annual income, the desgravamen único (774 UT = VES 33,282 at UT VES 43.00), and the number of registered dependents (10 UT personal credit + 10 UT per dependent). The employer applies the resulting percentage each pay period. Employees earning below the 1,000 UT annual threshold (VES 43,000) are exempt from withholding entirely.

Compute the statutory parafiscal contributions for each employee based on their salario base. Apply IVSS (employee 4%, employer 9%/10%/11% by INPSASEL risk class, capped at 5 minimum urban salaries ≈ VES 650/month), Paro Forzoso (employee 0.5%, employer 2%, capped at 10 minimum urban salaries ≈ VES 1,300/month), and FAOV (employee 1%, employer 2%, on total integral salary with no ceiling). INCES employer 2% applies to total monthly payroll; the employee 0.5% applies only to the annual utilidades bonus at year-end. LOPCYMAT rate must be sourced from the INPSASEL risk registration — do not default.

Assemble the monthly nómina register combining gross salary, all employee-side deductions (ISLR withholding + IVSS 4% + Paro 0.5% + FAOV 1%), and compute net VES salary per employee. Non-salary bonuses (Bono de Guerra Económica, Cestaticket) are recorded separately and paid outside the salary calculation. The register must reconcile total gross payroll, total deductions, total ISLR to remit to SENIAT, and total social contributions to remit to IVSS/BANAVIH/INCES.

Execute the monthly statutory payments. ISLR withheld from employees must be remitted to SENIAT per the withholding Providencia calendar (exact monthly due dates depend on the SENIAT special-taxpayer schedule — confirm with the current calendar). IVSS employer and employee contributions are remitted to IVSS via the Sistema TIUNA portal. FAOV contributions (employer 2% + employee 1%) are remitted to BANAVIH. INCES employer 2% is remitted quarterly. Late payment attracts penalties of 0.28% per day of delay up to 100%, escalating to 50% additional after one year (Código Orgánico Tributario).

At year-end (by 31 March for the prior calendar year), the employer issues Form AR-C (Comprobante de Retención — ARC) to each employee who had ISLR withheld. This certificate summarizes total income paid and total ISLR withheld during the year and is required by employees to file their personal ISLR return. Employees with net annual enrichment above 1,000 UT or gross income above 1,500 UT must file the annual ISLR declaration with SENIAT. Installment option: 31 March / 21 April / 12 May.