Run payroll, tax, and benefits in Mexico without the local setup. Fully localized, legally aligned, and built for tech hiring.
Smart payroll with accurate deductions, legal alignment, and full support for Mexico hiring.
MX$25.3 trillion
Spanish
MX$ (Mex$, $)
MX$480k–720k/year
1.92%–35%, withheld by employer
25–30%, employer-paid
around 5%, employer-paid
2%, employer-paid
We manage it clearly and fast.
Extra 1%–3%, varies by state and company type
ISR and 16% VAT via CFDI
Monthly CFDI and contributions filed to SAT.
Minimum: MX$248.93/day (2025); higher in border zones.
2x for the first 9 extra hours/week, 3x beyond.
CFDI de nómina in digital format.
Every step of tech payroll needs to follow the law. That means knowing how payroll taxes in Mexico work, classifying roles correctly, and fulfilling social security service requirements.
Correctly classifying employees and self-employed professionals is essential for companies operating in Mexico. Misclassification can lead to retroactive tax liabilities, penalties from SAT, and full employer obligations under IMSS.
In Mexico, worker classification is regulated by SAT and IMSS. Companies must correctly distinguish between contractors and employees, especially when hiring remote specialists. Legal status depends on how the work is performed, not where the person lives.
Independent professionals may be treated as employees if:
When these conditions are met, SAT or IMSS may reclassify the role. This creates retroactive obligations, including payroll filings, IMSS registration, and full employee benefits under Mexican labor law.
Even remote engineers, developers, or product contractors may be seen as employees if:
To avoid reclassification, make sure your contractor model reflects genuine autonomy.
Companies hiring remote or hybrid tech professionals in Mexico must meet labor, tax, and safety requirements—regardless of where the work is performed.
Employees must be Mexican citizens or hold valid residency and a work permit. Foreign workers require sponsorship and must remain employed to maintain status.
Under teletrabajo law, employers must cover proportional costs for electricity, internet, and necessary equipment. Terms must be specified in the employment contract.
Per NOM-037-STPS-2023, employers are responsible for ensuring safe conditions in remote environments. This includes ergonomic evaluations, hazard prevention, and access to occupational health support.
Workforce responsibilities include:
If remote employees access or store data across borders, companies must ensure safeguards under LFPDPPP and adhere to global standards where applicable (e.g., SCCs for U.S. SaaS tools).
Remote or hybrid setups do not exempt companies from payroll filings, tax declarations (SAT), or IMSS contributions. All remote employees must be fully reported.
Equity can be part of a tech compensation strategy in Mexico, but it requires clear tax treatment and careful structuring. There are no EMI-style tax incentives available.
Issuing a pay stub is mandatory under Mexican labor law. Employers must provide a CFDI de nómina—digitally signed XML and PDF—on or before each payday.
Mexico follows national labor law, but employers must still account for regional taxes, remote work policies, and foreign hire procedures—especially when building cross-state teams or managing hybrid operations.
Most tech employers operate under national frameworks—but if your engineers span multiple states, or your company sponsors foreign talent, regional compliance becomes essential.
Mexico’s HR landscape requires more than automation. Payroll outsourcing in Mexico demands legal fluency, accurate contributions, and region-specific handling.
Gaps between legal, local, and tech pay can raise red flags.
Misclassified contractors may trigger ISR debts and employment liabilities.
CFDI must detail net pay, taxes, and follow SAT formatting.
Software engineers must follow LFPDPPP for data, IP, and access security.
Errors in IMSS and INFONAVIT filings delay pay stubs or cause audits.
Track all paid leave, aguinaldo, and PTU with precision.
Teletrabajo requires cost reimbursement and ergonomic documentation under law.
Payroll mistakes hurt morale—tech teams expect clarity and accuracy.
Unlike other payroll providers in Mexico, we speak tech and law fluently.
SAT registration, CFDI issuance, and all ISR, IMSS, and INFONAVIT procedures handled in one integrated monthly cycle.
Clear guidance on employee vs contractor status to minimize liability and stay within Mexican labor law boundaries.
From gross-to-net calculations to XML validation, filings, and digital pay stubs—processed through SAT-compliant systems.
Phantom shares, RSUs, and performance bonuses mapped into compliant payroll structures and cross-border reports.
Configurable health insurance, food vouchers, internet stipends, and other perks designed to attract and retain tech talent.
All payroll data is encrypted and stored in environments audited for LFPDPPP, SAT, and IMSS compliance.
See how the Global Employer Of Record platform helps you seamlessly manage your global workforce — from hiring and compliance to payroll and employee requests — all in one place.
Most payroll services in Mexico offer surface-level coverage with limited tech sector focus. GEOR delivers strategic payroll outsourcing with deep expertise in Mexico payroll, achieving faster onboarding, lower costs, and stronger workforce retention.
Our basic package is ideal for startups, growing businesses, and nearshore teams seeking to go beyond standard outsourcing.
per employee/ month.
No hidden fees or extra charges.
Start paying your team as early as tomorrow.
See how simple it is to run compliant payroll with GEOR.
The platform they use to qualify, score, and predict candidate success was incredibly helpful during the hiring process. It made a significant difference.
The GEOR team was essentially an extension of our team. They found highly skilled engineers to manage core project goals, supporting the development of a scalable and reliable platform.
They go above and beyond with their service delivery. My initial expectations have not only been met but exceeded to a level I didn’t think possible.
They did a great job! Plan to use them in the future for more hiring. I like how they ask a lot of questions about what we needed, and then followed up quickly with results.
We’ve been really impressed with the temporary labor services they’ve offered. Thanks to them, we were able to secure contracts with top blockchain developers and DEFI projects.
Fantastic, constant communication and exchange of information, high efficiency in the execution of tasks, speed in action great cooperation and mutual understanding. I really like the quality of the candidates they were able to bring.
Built for Mexico’s legal landscape and tech hiring realities. We combine local expertise with full payroll ownership to offer more than just a platform.
| Feature | GEOR | Paylocity | Multiplier |
|---|---|---|---|
| Local compliance | Mexico-based ops and legal team | U.S.-centric, limited Mexico coverage | Relies on partners, limited local depth |
| Payroll structure | CFDI-ready, full ISR/IMSS/INFONAVIT flow | Generalized global payroll solutions | Standardized global templates |
| Tech expertise | Built for software, product, and data teams | Broad industry focus | Broad industries, not tech-focused |
| Equity/bonuses | Includes phantom stock, PTU, and aguinaldo | Limited support for local equity schemes | Minimal support for equity structures |
| Support | Bilingual HR + SAT experts | U.S.-based support, limited local insight | Ticket-based, slower response |
Scale in Mexico with a provider that gets how engineering teams really operate. GEOR knows the pace of tech hiring, the pressure to retain top talent, and how much rides on getting every contract right. We deliver structure with intelligence, not burden.
Test the easy way.
Employers must issue CFDI digital pay stubs and submit monthly payroll reports to SAT. Bonuses, benefits, and contributions are regulated under federal law.
We combine automation with bilingual HR and legal support to ensure accurate filings, proper classification, and full alignment with local requirements.
Yes. GEOR can act as your local Employer of Record, managing contracts, compensation, and government filings on your behalf.
Absolutely. We work with global employers to ensure their Mexico-based staff are fully compliant, even without setting up a legal entity.
We handle all calculations and filings for ISR (income tax), IMSS (social security), INFONAVIT (housing), SAR (retirement), and PTU (profit sharing).
Yes. We support phantom stock, RSUs, and performance-based bonuses, integrating them into CFDI and reporting them to SAT.
Yes. We structure remote work contracts, manage reimbursements, and stay aligned with NOM-037-STPS and labor regulations.
No. GEOR handles onboarding, salary payments, and employee benefits so you can operate without a local HR team.
Yes. Our infrastructure complies with LFPDPPP and SAT data protection standards, using encrypted systems and secure CFDI delivery.
Yes. We support both employment types, including CFDI invoicing and full ISR and IVA compliance for independent contractors.
We follow national labor rules to assess whether a worker qualifies as an employee or contractor, based on control, exclusivity, and dependency.
Freelancers must register with SAT, issue CFDI invoices, and handle their own taxes. We verify setups to reduce the risk of misclassification.
GEOR issues fully compliant CFDI de nómina (XML and PDF), delivered securely to each worker by or before the scheduled pay date.
GEOR specializes in LATAM payroll for software teams, offering fast onboarding, legal alignment, and contractor-friendly support tools.
If you’re hiring beyond paychecks and looking to give your team more.
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