Implementation of Electronic Payroll

The National Tax and Customs Directorate (DIAN), states in the resolution that companies must adapt the electronic invoicing system to be able to issue the electronic payroll support document derived from payments and credits on account due to an employment or legal and regulatory relationship, as well as the adjustment notes of the electronic payroll support document in the event of an adjustment due to calculation or content errors

The generation and transmission of these documents is performed independently for each of the beneficiaries of the payments made by the obligor.

Electronic payroll support document

The electronic payroll support document and the adjustment notes to the electronic payroll support document must contain the information established in articles 5 (information and content of the electronic payroll support document) and 17 (adjustment notes to the electronic payroll support document) of resolution 000013 of 2021, for the generation, transmission and validation by the Special Administrative Unit of the National Tax and Customs Directorate (DIAN).

This document is composed of the accrued payroll values, the values deducted from payroll and the total value of the difference between them. It must be generated and transmitted for tax purposes on a monthly basis, regardless of whether the obligor makes payments in different periods or less than those mentioned above. The deadline for the transmission of electronic payroll and adjustment notes will be the first 10 days of the month following the month to which the payment or credit on account corresponds.

The electronic payroll support document must contain the following information as established in Resolution 000013 of 2021 Article 5:

1. To be denominated.
2. Complete identification of the obligor.
3. Identification of the beneficiary of the payment.
4. The unique code of the electronic payroll support document - Cune.
5. Consecutive numbering.
6. Payroll accrued values, payroll deducted values and total difference value.
7. The means of payment used.
8. Date and time of generation.
9. Digital signature of the obligor.
10. Identification of the software.

Regulatory framework applicable to electronic payroll in Colombia

Resolution 000013 of 2021: Whereby the functionality of the electronic payroll support document is implemented and developed in the electronic invoicing system and the technical annex for this document is adopted.

​Resolution 0037 of 2021: Whereby the date on which each of the functionalities of the electronic invoice system will be available for the implementation of the technical annexes of Resolutions 000012, 000013 and 000015 of 2021 is established and other provisions are issued.

Resolution 000063 of 2021: Whereby Article 1 of Resolution 000037 of May 5, 2021, and numeral 1 of Article 6 of Resolution 000013 of February 11, 2021, modified by Article 3 of Resolution 000037 of May 5, 2021, are modified.

Resolution 000151 of 2021: Whereby a special term is established for the generation and transmission of the electronic payroll support document for employers that have between one (1) and ten (10) employees.

Resolution 000028 of 2022: Whereby Article 1 of Resolution 00151 of 2021 is amended and a special term is established for the generation and transmission of the electronic payroll payment support document for employers not required to issue electronic sales invoices.                      

Obliged to generate and transmit electronic payroll support document

According to article 4 of resolution 000013 of 2021, taxpayers of income tax and complementary tax who make payments or credits on account derived from an employment or legal relationship, and for payments to pensioners who need to support the costs and deductions and deductible taxes, are required to generate and transmit for validation the electronic payroll payment support document.

Not required to issue electronic payrolls

The following employers are not required to issue electronic payroll.

• Legal entities that are not income tax filers (art. 22 of the ET.).
• Individuals under the ordinary income tax regime who, even if they have employees at the end of the year, are not obliged to declare income.
• Individuals or legal entities belonging to the simple regime.

Electronic IT services

The generation of the electronic payroll support document must be done through software that complies with the technical conditions set forth by the DIAN and must be validated and approved by the DIAN, which may use its own software, DIAN's free software or hire a specialized technology provider.

To generate the electronic payroll support document, the service must first be enabled on the DIAN website, and then implemented, which requires its own software or that of a technology provider, the digital signature and the configuration or parameterization of everything necessary to start sending electronic payroll documents.

Prerequisites for generating and issuing electronic payroll

To start the generation and transmission of the electronic payroll support document, the following requirements must be taken into account:

• To be enabled in electronic invoicing.
• To have software for the generation of the supporting document.
• Digital signature.
• To be enabled in the DIAN.

Language and currency in the electronic payroll content

The Spanish language and the Colombian peso must be used in the generation of the electronic payroll payment support document and the adjustment notes of the electronic payroll payment support document, notwithstanding that in addition to expressing the respective value in Colombian pesos it may be expressed in another currency and in a language other than Spanish.

Penalties for non-compliance with electronic payroll transmissions

Therefore, in case of non-compliance with the obligation to transmit the electronic payroll to the DIAN, in addition to not being able to impute the cost of the payroll not transmitted in the income tax return, the penalty of Article 651 of the ET will also be imputable:

• 5% of the total payroll if no information is submitted.
• 4% if you submit erroneous information and fail to correct it within the deadlines.
• 3% if the information is submitted late.

[1] Resolution 000013 of 2021.

[2] Technical Annex of the electronic payroll support document.

[3] Resolution 000028 of 2022.