FUSION PAYROLL: PR165 - Box 16 or 16A - Code E - Salary not over $40,000 per year under Act 135-2014 (Section 1031.02(a)(35) of the Code Birth Date (E233-E240) must be provided for employees sending this field
Last updated on JANUARY 06, 2017
Applies to:Oracle Fusion Global Payroll Cloud Service - Version 220.127.116.11.0 and later
Information in this document applies to any platform.
The Young Entrepreneurs Act was passed in 2014. All young residents of Puerto Rico, who are salaried employees and are between sixteen to twenty-six years of age will receive an exemption amount of $40,000.
This exemption amount will be reported on the Puerto Rico W-2 in Box 16. If the employee earned a salary higher than $40,000, the excess of the salary over the $40,000 exemption will be considered taxable income.
US legislation needs to accommodate this exemption amount.
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