Year-end expenses: how should companies organize themselves to meet their obligations?

October is ending and companies begin to prepare for the end of the annual cycle, a period that varies according to the sector of operation. The Federal Accounting Council (CFC) emphasizes the importance of careful planning to avoid setbacks and extra costs.

According to accountant Angela Dantas, CFC advisor, in addition to routine accounting activities (such as closing the payroll of companies IO is necessary to correctly calculate the benefits and deadlines. 

“Among the main obligations are the payment of the 13th salary, the execution of the Profit and Results Participation Program (PPLR) and the preparation of the Employee Income Reports, which need to be ready in advance of the expected date for use”, he warns. 

 The advisor also recalls that one of the fundamental obligations is the payment of the Corporate Income Tax (IRPJ) and the Social Contribution on Net Income (CSLL), which can be calculated monthly, quarterly or annually. In the case of companies that opt for the real profit regime, the calculation must be completed by the last day of the calendar year, December 31.

“Non-payment of these taxes can generate fines between 2% and 20%, according to the reported profit, as well as deliberations for errors in the provision of” information, he says.

Another relevant point is the analysis of financial statements to ensure that the closing of the balance sheet, scheduled for December 31, 2024, is carried out accurately, with the reconciliation of equity accounts and the correct distribution of profits, if any.

The CFC lists three key commitments for the last quarter, which must be met on time:

Collective holidays

• Deadline: communication must be made up to 15 days before the start of the collective holidays.
• Obligations: notify the Regional Labor Office (DRT), inform the category union and employees, and organize payments.
• Punishment: errors in the process can result in fines for each employee in an irregular situation and compensation corresponding to the vacation salary, according to the Federal Constitution.

13 Salary

• Deadline: the first installment must be paid by november 30 and the second by december 20.
• Punishment: noncompliance may result in fines imposed by the Ministry of Labor and Employment (MTE) and labor actions motivated by employees.

Profit and Results Participation Program (PPLR)

• Deadline: the payment of the PPLR is determined by collective agreement and must be made in up to two annual installments, with a maximum of three months between them.
• Punishment: failure to pay PPLR as agreed may result in legal action, individual or collective.

Responsibilities for fulfilling these obligations are divided between the Accounting and Human Resources departments, which must manage the strategic form of these processes, and maintain employee motivation and involvement.

“O year-end is a time requested for accountants, especially with the organization of collective vacations and the payment of the 13th salary. An error can have significant implications, affecting the relationship between company and employee”, concludes the advisor.