What is eSocial? How does it work and what is the tool for?
Discover what eSocial is and why it is so important for your company
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Do you know what eSocial is and how to use it? This is a very common question among companies today, despite the platform having been created in 2014.
The main objective of this Federal Government project is to digitalize the sending of tax and labor information from companies.
With that in mind, in today’s article, we’re going to talk more about eSocial and answer all your questions on the subject.
What is eSocial?
The system is an initiative of the Federal Revenue, Caixa Econômica, INSS and the Ministry of Labor and is part of SPED (Public Digital Accounting System).
This project should modernize and innovate processes involving tax obligations, and thus reduce the bureaucracy present in the business sector.
It brings together several federal agencies, as well as organizations and collaborators.
The program, which will allow a set of information to be sent to a single place, the National eSocial Environment, will be mandatory for legal entities (including MEI) and individuals who have domestic employees.
This means that anyone who has an employee must adopt eSocial to comply with tax, social security and labor obligations.
In this way, the system will be able to replace bureaucratic processes, as it will centralize the sending of data, which is essential to reduce errors and loss of information.
Therefore, when defining what eSocial is, we can say that this tool will consolidate the accessory obligations of the labor area of a business in a single submission.
What obligations are part of eSocial?
There are several obligations that must be fulfilled on the platform:
· GFIP – FGTS Collection Guide and Social Security Information;
· CAGED – General Registry of Employed and Unemployed Persons to control the hiring and dismissal of employees under the CLT regime;
· RAIS – Annual Report of Social Information;
· LRE – Employee Registration Book;
· CAT – Communication of Work Accident;
· CD – Communication of Exemption;
· CTPS – Employment and Social Security Card;
· PPP – Professional Social Security Profile;
· DIRF – Declaration of Income Tax Withheld at Source;
· DCTF – Declaration of Federal Tax Debits and Credits;
· QHT – Work Schedule;
· MANAD – Normative Manual for Digital Archives;
· Payroll;
· GRF – FGTS Collection Guide;
· GPS – Social Security Guide.
· PPRA – Environmental Risk Prevention Program
· PCMSO – Occupational Health Medical Control Program
Source: I counted
How to prepare the company for eSocial?
The ideal is to start preparing as soon as possible, so that you have the necessary time to fill in information and avoid making mistakes.
Here are some tips to help you make this transition more smoothly and efficiently:
• Updated documentation: Start by separating employee documents and records, as each employee's history must be registered in the system. This will speed up the process.
• Digital certificate: the digital certificate, Basically, it is the electronic identity of a natural or legal person. This type of electronic signature ensures the legality of transactions carried out in the digital environment. In practice, it works like an electronic CPF or CNPJ.
• Learn more about eSocial: To understand everything about the platform, it is very important that you analyze all the necessary information. You can do this by entering the system website.
What changes with eSocial?
Several processes and systems will be affected by the project.
With eSocial, current rules and processes must be reviewed to ensure that all requirements are being met.
After reviewing processes, it is necessary to analyze what adjustments will be made.
What are the main advantages of eSocial?
Even with the difficulties businesses face in adapting to eSocial, this project can bring some advantages to the parties involved.
With this platform, the government will receive this data in a unified and standardized way.
Regarding the main advantages, we can mention:
Providing data in a single location
Data centralization is important for information control.
As employee information will be present on a single platform, eSocial will facilitate the process of sending information.
Simplicity in sending and correcting information
By centralizing the sending process, it becomes easier to control the information sent.
Debureaucratization
It's no secret that business processes can be extremely bureaucratic and complex.
eSocial will help to reduce bureaucracy.
After all, with the implementation of the program, filling out several required forms will no longer be necessary, so that tax information will be issued in a single file.
Data storage security
Data storage security is also another point that deserves attention.
Any security breach can cause harm.
The good news is that eSocial will offer more security regarding the data storage process.
What are the disadvantages of eSocial?
It is important to remember that fines are automatic for companies that do not comply with the short deadlines of the eSocial schedule and registration qualification.
Furthermore, we are talking about something that will require a new way of executing processes, which requires changes and efforts in standardizing information.
At least in the beginning, this can be difficult for some companies.
Fines
Companies that hide essential data or fail to comply with the deadline for submitting information may be subject to fines.
For example, a company that fails to inform about a new hire may have to pay a fine of up to R$1,000,000 per employee.
In case of recurrence, the fine will be paid with an increase.
This is one of the reasons why it is so important to send employment relationship information correctly and on time.
Conclusion
Now you know what eSocial is and how this platform created by the Federal Government will bring changes to the process of sending and unifying information.
Companies that do not update or omit any information regarding employment relationships may be penalized with fines.
For this reason, it is essential to keep all managers and the HR team updated on the changes.
As it is a relatively new process that may undergo several changes, it is normal that, at least for now, it seems complex.
However, eSocial will simplify several processes that were previously much more bureaucratic.
In this way, both employers and employees can benefit.
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