eSocial

Digital recording of labor, social security, tax and fiscal information, among other information, related to the hiring and use of labor, with or without an employment relationship.

IMPLEMENTATION

1st Group
The implementation of eSocial for employers in the 1st Group, which includes “Business Entities” (defined in Annex V of Normative Instruction RFB No. 1.634/2016) taxed on real profit and with revenue (gross income) exceeding R$78.000.000,00 (seventy-eight million reais) in 2016, will be mandatory from January 2018.

The implementation in question will take place progressively, according to the attached schedule.

2st Group
In July 2018, the implementation of eSocial will also be mandatory for the 2nd Group, comprising other employers and taxpayers, namely: (i) “Business Entities” taxed on real profit and with revenue (gross revenue) less than or equal to R$78.000.000,00 (seventy-eight million reais) in 2016; (ii) non-profit entities; (iii) individuals; and (iv) international organizations and other extraterritorial institutions, all listed in accordance with the aforementioned Annex V of Normative Instruction RFB No. 1.634/2016.

The implementation in question will take place progressively, according to the attached schedule.

3st Group
For the last and 3rd Group, which comprises public entities, defined in Annex V of Normative Instruction RFB No. 1.634/2016 as members of the “Public Administration”, the implementation of eSocial will only be mandatory in January 2019.

The implementation in question will take place progressively, according to the attached schedule.

Occupational Health and Safety Events

It is important to mention that the transmission of occupational health and safety events will only be mandatory for the 1st and 2nd Groups in January 2019, and for the 3rd Group, only in July 2019.

EVENTS

Events are individualized information according to their nature, which must be entered into eSocial. Events are divided into three types: a) initial and table events; b) periodic events; and c) non-periodic events.

a) initial and table events: these are the first events to be entered into the system, such as: employer information, heading table, tax allocations, table of positions and functions, working hours, work environments, administrative-judicial processes, initial registration of employment relationship, union membership, etc.

b) recurring events: These have a predefined frequency. These are essentially payroll events. These events must be submitted by the 7th of the month following the month in which they were worked.

c) non-periodic events: they do not have a defined periodicity, are not recurring, that is, they should only be entered when a specific event occurs, such as: admission, dismissal, contract change, worker health monitoring, absence, risk conditions, reinstatement, etc.

WHAT HAS CHANGED?

The way in which information will be sent by employers and received by participating agencies has been changed: Ministry of Labor and Employment, Social Security, Federal Revenue and Caixa Econômica Federal, as the provision of information is now unified.

WHAT INFORMATION SHOULD BE ENTERED INTO THE SYSTEM?

All information related to services provided by individuals, i.e., employees and workers without mandatory ties (TSV), such as non-employed directors and interns, must be entered into eSocial.

There are also optional workers without a contract, meaning those whose information does not necessarily need to be included in eSocial. It is recommended that these workers' information not be entered into the system to prevent such information from being used against the company.

LABOR LAWSUITS

Labor lawsuits should only be registered in eSocial when the employee-claimant is reinstated, in the “Reinstatement” event.

POINTS TO NOTE

Data entered into eSocial can be changed, corrected, or deleted. However, all changes and corrections made will be recorded in the eSocial history. The company may face penalties for providing inaccurate information, in accordance with applicable law.

To delete an event, you'll need to enter its registration number, the one generated when it was entered into the system. Each event has a deadline, and several events are interconnected. Therefore, to enter an event, it's often necessary to enter other events first; for example, an employee's hiring must precede their leave or vacation.

It is essential that the registration of initial and table events be provided before the implementation of eSocial, since, as already mentioned, it will only be possible to change any employee information if their registration is already in eSocial.

Managers should be trained on the importance of informing Human Resources in advance of any changes to employees' employment contracts, such as job titles and schedules, so that they can be entered into eSocial in a timely and accurate manner. Validation of information provided by eSocial is minimal, so there are no warnings in the system if incorrect or inaccurate information is entered.

IMMEDIATE ACTIONS

All companies must prepare a record of preliminary and table events, especially those related to payroll, as these are the first to be implemented in eSocial.

It is recommended that all current and future employees be asked to verify the accuracy of their personal data, such as CPF, NIS, date of birth and full name, on the eSocial website:
www.esocial.gov.br/qualificacaocadastral.aspx

It is essential to review internal routines, prepare a study of the company's reality, especially payroll events, job and function plan, work schedules, and rectify information before sending it to eSocial.

answered

Montgomery & Associados is available to answer any questions you may have regarding eSocial. For more information and a comparison table, please visit the following link:
https://montgomery.adv.br/esocial-3/. Dúvidas podem ser encaminhadas para: esocial@montgomery.adv.br

ANNEX A/ ATTACHEMENT A:

eSocial Implementation Schedule/

Timeline of eSocial Implementation

*Companies with annual revenue (gross income) in 2016 above R$78.000.000,00 / Companies with turnover (gross income) in 2016 above BRL78,000.000.00.