Puerto Rico Tax Guide

State tax registration guide for Puerto Rico.

REQUIRED REGISTRATIONS

• Unemployment Insurance: Puerto Rico Department of Labor and Human Resources

• Income Tax Withholding: Puerto Rico Department of Treasury

 REQUIRED INFORMATION

• SIT ID # (format: XXXXXXXXX or XXXXXXXXXX)

• SIT website TPA access authorization (instructions here)

• SUI ID # (format: XXXXXXXXXX)

• Current year SUI rate

• SUI website TPA user setup (instructions here) 

TIP:

Your Namely Payroll setup may include several Puerto Rico Tax Codes. Puerto Rico Disability Insurance uses the same ID as Puerto Rico Unemployment tax.

 

REGISTERING FOR UNEMPLOYMENT INSURANCE

If this will be your first time running payroll in Puerto Rico, you can register by completing the Authorization to Provider Access to the Employer Portal Services, as well as completing the Employer Application.

TIP:

Future-date registration is possible for this state's unemployment insurance! 

Once registered, you'll receive a Puerto Rico Unemployment Account Number (UI), Unemployment Rate (%), and access to the Puerto Rico online portal. You'll need to provide Namely with the agency website login credentials, as well as updating your Namely Company Tax page.

Entering Puerto Rico Unemployment Rates in Namely Payroll

There are two Tax Types for Puerto Rico unemployment in the Namely Company Tax page.

Puerto Rico Employer Unemployment Tax - This tax rate is specific to each employer and assigned by the tax agency.

Puerto Rico Special Assessment Tax - This tax rate is the same for all employers and is hard coded in the tax calculation within Namely Payroll. 
When entering the unemployment rate for Puerto Rico in the Company Tax page, ensure that the Puerto Rico Special Assessment rate is not included.  
Namely Payroll will automatically calculate the Puerto Rico Special Assessment tax.

CONTACT:

Contact the Puerto Rico Department of Labor and Human Resources via their website , or by phone 787-754-2119 if you need further assistance.

 

REGISTERING FOR INCOME TAX WITHHOLDING

If this will be your first time running payroll in Puerto Rico, you can register for Income Tax Withholding. 

TIP:

Future-date registration is possible for this state's income tax withholding!

Once you've completed the registration, be on the lookout for an email from Puerto Rico to verify your account. Once the email is received, follow the link, click the Employer/Corporation option, and Continue.

Once you verify your account setup, you will receive a Puerto Rico Withholding Tax ID and a document called "Notification to Employers and Withholding Agents, Access Code and Control Numbers". In addition, you'll need to setup your SURI website online account. You'll want to add your ID to Namely Payroll and provide Namely with your SURI website login credentials. 

CONTACT:

Contact the Puerto Rico Department of Treasury via their website , by email w2info@hacienda.gobierno.pr, by fax 787-522-5040, or by phone 787-722-0216 (option 4) if you need additional assistance. 

INCOME WITHHOLDING FORMS

Namely uploads Federal and State W-4 documents to your HRIS site for use during Onboarding, or if you need to send W-4s to employees who need to make withholding adjustments. 

TIP:

The most up to date W-4 documents can be found in the Namely section of the Document dropdown menu in Onboarding and Manage eSignature. 

Form Name: 499 R-4.1 

Accepts Fed W-4: No 

Comments: Employees should provide employers with a withholding exemption certificate, Form 499R-4.1, when employment begins. If no certificate is provided, you must withhold tax on the basis of no exemptions.



The withholding certificate takes effect with the first payroll period ending (or the first payment of wages) after the date the employee provides the form and remains in effect until the worker provides another certificate. An amended certificate is effective for the first wage payment made on or after the first status determination date (January 1 or July 1) unless the employer implements the changes at an earlier date.

 

PAYROLL + TAX FACTS

Refer to this document for more information:2022-2023 Federal and State: Payroll and Tax Fact Sheet. 

 

POWER OF ATTORNEY FORMS

Please note, Namely does not require a Power of Attorney for this state at this time. It is not required to file or remit payments on your behalf. If one is needed to resolve a tax matter, the tax notice team will request one from you at that time.

If a Power of Attorney is requested from you, you should email completed copies of the forms namelyPOA@Namely.com with the CID in the subject line for processing. We will update our system and maintain a copy of each form for record-keeping purposes

For additional information on Power of Attorney, read Completing the Power of Attorney Package.