Payroll and TSS made simple

How it works

In the Dominican Republic every employer must enroll its employees in the Dominican Social Security System (SDSS), created by Law 87-01. Every month, the Social Security Treasury (TSS) collects the contributions and distributes them among the different insurance schemes.

The contributions mainly cover three schemes:

The employee’s share is deducted from their salary and the employer’s share is paid on top of the salary. The percentages and caps are set by law and updated over time; your accountant or the TSS itself will give you the current ones.

Before payroll: each employee’s details

Orderly payroll starts with complete data. For each team member keep at hand:

• Full name and cédula number.
• Start date and position.
• Salary and pay frequency: monthly or every two weeks.
• Bank account for payment.
• Dependants, if they register them on their health insurance.

The month, step by step

1. Gather the month’s changes: overtime, absences, leave, staff joining and leaving, salary changes.
2. Work out each employee’s gross salary.
3. Apply the legal deductions: TSS contributions and income tax withholding where it applies.
4. Apply any other deductions agreed in writing, such as loans or advances.
5. Review payroll and pay on the usual date, giving everyone their payslip.
6. Report the changes on the TSS portal (SUIR) within the month’s deadline.
7. Pay the TSS notice before its due date.
8. Declare salary income tax withholdings to the DGII, if there were any.

Paying the TSS after the due date adds surcharges and interest. Every month, note the deadline shown on the notice and pay a few days ahead.

The changes most often forgotten

• An employee leaving: if it isn’t reported, the TSS keeps charging their contributions.
• A pay rise: contributions must use the new salary from the month of the change.
• Medical or maternity leave, which has its own procedure.
• Commissions or bonuses paid through payroll, which are also part of the contributable salary.

Doctors paid by professional fees

Many doctors work at the clinic as independent professionals and are paid by fees, not through payroll. In that case they aren’t included with the TSS as employees, but the payments usually carry their own tax withholdings. Decide with your accountant how each doctor is treated and put the arrangement in writing.

Christmas salary and vacation

The Labor Code sets out the regalía pascual, the Christmas salary, paid in December and calculated from the year’s ordinary salary. It also gives every employee the right to paid vacation after a year of work. Put both on your calendar so they never catch you by surprise.

Summary

1. Complete details for each employee and TSS registration from day one.
2. The same order every month: changes, calculation, deductions, payment and payslips.
3. Changes reported on the SUIR and the notice paid before it’s due.
4. Salary withholdings declared to the DGII.
5. Christmas salary and vacation on the calendar.