How eSocial Simplified Will Help Small Businesses Regularize Employees

eSocial is a federal government system that unifies the employer’s access to information for a company’s workers. Starting in October, he will receive a simplified module to help the Individual Microentrepreneur (MEI) to provide information about the company. In practice, it will encourage small entrepreneurs to fight informality, simply regularizing their hiring and jobs.

The simplified web version of eSocial will be a platform for digital recording of companies’ legal obligations. Its purpose is to facilitate the completion of calculations for payment of taxes, labor charges and social security obligations depending on the workers of each company.

The service will collect information such as registration, employment relationships, social security contributions, payroll and other information related to employees. Another advantage will be the availability of unified and simplified generation of payment slips for social security contributions (INSS) and FGTS, through the eSocial Collection Document (DAE).

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Image: Reproduction/Christin Hume/Unsplash

MEI will only need to use it in cases where it has at least one employee. In addition to micro-entrepreneurs, special policyholders who work in small production or in a family way will be able to use the new eSocial.

The expectation is that the new eSocial will reduce bureaucracy and encourage more hiring in small businesses. “Around 3.5% of the 13 million MEI have formally hired employees. With the launch, it is possible that many who already have non-formalized employees or assistants opt for formalization. This will generate more jobs and benefit more people with social security and labor rights”, says Helena Rego, public policy analyst at Sebrae, in a press release.

For Rego, the digitization of labor processes is an important tool to reduce bureaucracy in small entrepreneurs’ routines. “They are workers who have an intense routine. Many of them are dedicated to business alone. With this ease, that person who, for example, makes meals to sell every day can hire another person to help and it will be simpler to regularize this workforce”, he points out.

Source: Accounting, Sebrae

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