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Payroll Software in Colombia

Payroll Software in Colombia

Mercans Payroll Software Colombia is your top choice for efficient, compliant, and streamlined payroll management. As the leading Payroll Software Colombia, our solution is specifically designed to meet the unique requirements of the Colombian market, ensuring that every aspect of your Mercans Payroll System in Colombia is managed seamlessly.

Our all-in-one native SaaS solution offers complete, error-free digitalization of your payroll processes. As the world’s only native global payroll SaaS covering 160 countries, Mercans goes beyond being just a payroll system—it’s an enterprise-wide solution tailored for businesses of all sizes, from local firms to global conglomerates. With its scalable architecture and seamless integration across modules, our Colombia Payroll Software delivers an intuitive and effective user experience, enhancing your payroll management with precision and ease.

Compliant with Colombian Tax and Customs National Authority (DIAN)

Compliant with Colombian Tax and Customs National Authority (DIAN)

Colombia

Customs National Authority (DIAN)

Mercans is fully compliant with Colombian regulations, ensuring 100% adherence to the standards set by the Colombian Tax and Customs National Authority (DIAN). Our Mercans Payroll System in Colombia is meticulously designed to align with DIAN’s requirements, providing our clients with peace of mind that their payroll software in Colombia is fully compliant with local tax and labor laws. This commitment to compliance not only safeguards businesses from potential legal challenges but also enhances operational efficiency, allowing companies to focus on growth while we handle the complexities of regulatory adherence in Colombia with our advanced Payroll System in Colombia

Compliant with Colombian Tax and Customs National Authority (DIAN)
Why Choose Mercans

Why Choose Mercans

  • Native SaaS and Payroll platform in Colombia
  • Trusted by fortune global 500 and multinationals
  • Manage All Employment Types - Employees, Freelancers, Contractors, Expats
  • More than 100 inbound and outbound integrations are available today
  • Suitable for enterprise businesses
  • GDPR certified, SOC 1 & SOC 2 Compliant
  • Supports Multiple Currencies
  • ISO 20000 & ISO 27001 Certified
  • Global presence and multi-country payroll capabilities
  • OWASP ASVS 3.0 Compliant
Payroll Software Modules

Payroll Software Modules

Mercans Payroll Software offers managers and employees a powerful and intuitive online portal designed to streamline and enhance your HR and payroll activities. Our advanced software modules are equipped with cutting-edge functionality to ensure efficiency, compliance, and a superior user experience. Learn about them here:

Manager Self Service

Empowers managers to handle HR tasks, including approvals, performance tracking, and employee management, directly from the platform.

Employee Self Service

Provides employees with direct access to their personal information, payroll details, and other HR resources, enhancing transparency and convenience.

Employee Help Desk

Offers a centralized support system for employees to address payroll and HR-related queries, ensuring quick resolution and improved satisfaction.

Data Exchange

Facilitates seamless integration with other systems and platforms through robust data exchange capabilities, streamlining data management and reducing errors.

eDrive and Workflows

Automates and streamlines HR processes with configurable workflows and document management, improving efficiency and compliance.

Time & Attendance

Tracks employee work hours, attendance, and productivity with precision, integrating seamlessly with payroll calculations.

Leave Management

Manages various types of employee leave, including vacation, sick leave, and other absences, with automated approval workflows and accurate tracking.

Loans & Expenses

Handles employee loans and expense claims, ensuring accurate processing and integration with payroll for seamless financial management.

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Payroll Features - Colombia

Streamlined Payroll Process

Mercans Payroll Platform in Colombia automates and simplifies payroll management, from calculating payments and settlements to managing contributions to the Social Protection System through PILA. This comprehensive payroll software in Colombia centralizes accounting, generates Electronic Payroll support documents, and more—all within a single platform.

Efficient Payments

Mercans Payroll System in Colombia allows for seamless payroll settlements, Social Security contributions, and Parafiscal payments via PILA. The software automatically calculates payments with each new event, generates month-end closing files in minutes, and provides employees with online access to payment details.

Payroll Implementation

Flexible Payment Scheduling

Make payments on a monthly, biweekly, or custom schedule based on your chosen frequency.

Quick Processing

Complete the entire payroll process—from preparation to payment—within seconds.

Assistance Calculations

Automatically calculate Transportation and Connectivity Assistance for your employees.

Real-Time Updates

Add new Employees, Benefits, and Updates on the fly, and see the changes immediately reflected in the payroll.

Special Case Handling

Seamlessly manage payroll for months with 31 days and for February.

Multi-Account Payments

Pay employees through different remittance bank accounts, with automatic distribution to the bank accounts associated with each employee.

Pay Stub Distribution

Distribute pay stubs with clear information to minimize employee concerns regarding their settlement.

Comprehensive Accounting

Automatically generate the complete accounting entries for payments, including accruals for vacation liabilities, benefits, social security contributions, and parafiscal contributions.

Flexible Bonus Payments

Choose to pay the service bonus and severance interest with regular payroll or as separate payments.

Year-Round Payroll Options

Allow for employee payments on a 360-day or 365/366-day annual basis.

Electronic Payroll

Easily issue payroll payment vouchers with just a few clicks and generate any necessary adjustment documents. You can also track and review a comprehensive record of your electronic payroll documents from anywhere, ensuring you stay compliant with the latest DIAN requirements.

As authorized technological providers by the DIAN, we enable you to generate Electronic Payroll XML files and Adjustment Notes according to DIAN specifications, consolidating all payments or cancellations made to employees during the month. You can view DIAN validation responses for your submitted electronic documents and transmit payroll data, including social benefits and vacation expenses for the taxable year, in XML format along with the December payroll.

Withholding Tax (DIAN)

Mercans Payroll Software Colombia enables you to track Withholding Tax reliefs submitted by employees and automatically calculates the applicable monthly or semi-annual withholding tax percentage. Mercans Payroll System in Colombia determines the withholding amount to be deducted from each payroll payment—whether periodic or special—based on the assigned procedure (1 or 2). Additionally, Mercans’ Payroll Platform in Colombia allows you to generate Form 220 for the Certificate of Income and Withholdings for Employment Income, and Form 2276 for Exogenous Information related to Income and Withholdings.

Payroll Features
Payroll Features

Withholding Tax Calculations

  • Payroll withholding tax
  • Withholding tax on premiums
  • Withholding tax on workers’ compensation
  • Withholding tax on retirement bonuses

Mercans Payroll Software Colombia automatically calculates withholding tax using procedures 1 and 2, providing all necessary supporting documents for each deduction.

Registro y Control de Capacidades

Mercans efficiently calculates the Base Contribution Income (BCI) for employees who become disabled, allowing for manual adjustments as needed. Our system supports the management of various disability types, including maternity, common illness, work accidents, and any extensions related to these conditions.

Disabilities and Social Security Contributions (PILA)

Mercans handles Maternity/Paternity Leave and disabilities covered by health systems (General Illness) or Occupational Risks (Occupational Illnesses or Work Accidents). We manage extensions related to initial disabilities and accurately calculate the total elapsed time from the start of the disability to the end of the extension period. Our system ensures that liabilities and costs for benefits and social security are recorded at their Real Value (as defined by IFRS) each month.

Stay current with payroll payments and track pending Social Security Contributions for the month. Mercans generates the PILA File (Integrated Self-Assessment Form for Social Security Contributions) and updates the payment of contributions.

PILA Files

Mercans automatically generates PILA flat files with all the necessary information for seamless processing.

Additional UPC

With Mercans, you can easily register additional UPCs and handle calculations, deductions, and reporting in PILA automatically.

UGPP

Mercans automatically generates reports to ensure compliance with all current UGPP regulations.

SENA

Track the status of your SENA apprentices and set up alerts for contract termination and renewal with ease.

Auto Compliance

Mercans Payroll Software Colombia seamlessly adapts to the unique complexities of your industry, as well as to new policies and regulations. Forget about manually updating PILA spreadsheet parameters—Mercans Payroll Platform in Colombia handles it for you in real time. You can rely on our platform to stay current with any legislative changes, ensuring continuous compliance and peace of mind.

Benefits Management

Mercans provides comprehensive management of additional benefits, allowing you to configure and control various types of benefits

  • Premium Benefits: These are benefits with specific calculation and payment frequencies (biweekly, semi-annual, annual, etc.), calculated based on a set of concepts.
  • Seniority Benefits: Calculated and paid each time an employee reaches a particular milestone with the company, such as annually or every 5 years.
  • Vacation Benefits: Supplement the employee’s vacation calculation and payment, providing an additional value every time the employee takes time off.
Payroll Implementation

Frequency of Liquidations

Mercans facilitates accurate biweekly payments, with deductions made in the latter half of each month. This flexibility supports defining weekly, decennial, or semi-annual payments and deductions, ensuring precise payroll management.

Simulation of Payrolls and Premiums

Our platform allows for detailed payroll simulation and reassessment of individual employees to correct any errors. It also supports the simulation of payments for bonuses, vacations, layoffs, severance interests, and other legally required liquidations.

Handling of Collective Agreements

Mercans enables the configuration of employee groups, concepts, and additional benefits according to collective wage agreements. This functionality allows for customized payroll settlement conditions following collective bargaining outcomes.

End-of-Year Closing Processes

Automate end-of-year closing processes with Mercans, including consolidation of vacations, layoffs, and severance interests. This feature ensures accurate tracking of consolidated amounts collected throughout the year for provisions and pending balances.

Multi-Company Management

Manage multiple companies within your group, each with its own specific settings, using Mercans.

Retroactive Payroll Processing / Reprocessing

Easily make changes to payroll even after payments have been processed. Mercans Payroll Platform in Colombia provides detailed information before, during, and after reprocessing to ensure accuracy and transparency.

Mercans ensures that all payroll calculations are made in strict accordance with legal requirements and UGPP guidelines. Our system supports comprehensive employee management, including:

Employee History

Track payroll history for current or previous employment.

Contract Management

Handle Indefinite Term Contracts, Fixed Term Contracts, or Contracts for the Duration of Work.

Employee Types

Manage Dependent Employees, Apprentices, University Students, Retirees, and those meeting specific criteria.

Salary Management

Oversee Fixed and Variable Salaries, Full-Time, Part-Time, and Hourly Workdays.

Benefits and Bonuses

Manage Food Vouchers, salary, and non-salary bonuses, as well as surcharges and overtime.

Loans and Deductions

Control Loans, Releases, and deductions for agreements or other values.

Licenses and Permits

Track paid or unpaid licenses/permits and handle news with start and end dates or repeated occurrences.

Mercans efficiently manages vacation payments, whether in days, monetary compensation, or final settlement upon contract termination. We calculate working days and holidays in the vacation period according to the Colombian holiday calendar and maintain a permanent record of entitled vacation days. Our system offers:

Vacation Studies

Review entitled days for each year worked.

Service Bonuses and Severance Pay

Pay service bonuses and severance pay interest either within the periodic payroll or as separate payments for financial flexibility.

Severance Pay Management

Pay severance according to the associated fund.

Accurate Liabilities and Costs

Ensure liabilities and costs are recorded at their real value, matching paid amounts with the exact values required by IFRS.

ERP Integration

Generate respective outflows in bank accounts for separate payments if using ERP for SMEs.

Mercans facilitates seamless integration with various digital platforms:

Payroll Payments

File payments in the bank’s required format.

Fintech Ecosystem

Enable employee access to Libranza credits through our partner Linxe.

Social Security Operators

Integrate through the PILA file in the standard format used in Colombia.

Year-End XML Generation

Create XML for Consolidated Severance Pay Liabilities and Severance Pay Interest.

DIAN Integration

Transmit Electronic Payroll events and generate the Exogenous Information Annex for DIAN.

Upcoming Integrations

New integrations with Digital Ecosystem Allies are forthcoming.

Mercans manages social security and parafiscal contributions efficiently:

Contribution Calculations

Accurately calculate social security and parafiscal contributions.

Law 1393 Compliance

Apply Law 1393 for non-salary concepts.

Contribution Differences

Precisely provide the difference between contributor payments and the total due by PILA.

New Developments

Handle PILA with updates on independent lines and contribution caps of 25 SMLV for social security subsystems.

Flat File Generation

Generate the flat file compatible with any operator.

Type K Forms

Manage Type K forms for university interns.

Compliance

Mercans ensures that all payroll calculations are made in strict accordance with legal requirements and UGPP guidelines. Our system supports comprehensive employee management, including:

Employee History

Track payroll history for current or previous employment.

Contract Management

Handle Indefinite Term Contracts, Fixed Term Contracts, or Contracts for the Duration of Work.

Employee Types

Manage Dependent Employees, Apprentices, University Students, Retirees, and those meeting specific criteria.

Salary Management

Oversee Fixed and Variable Salaries, Full-Time, Part-Time, and Hourly Workdays.

Benefits and Bonuses

Manage Food Vouchers, salary, and non-salary bonuses, as well as surcharges and overtime.

Loans and Deductions

Control Loans, Releases, and deductions for agreements or other values.

Licenses and Permits

Track paid or unpaid licenses/permits and handle news with start and end dates or repeated occurrences.

Vacation & Benefits

Mercans efficiently manages vacation payments, whether in days, monetary compensation, or final settlement upon contract termination. We calculate working days and holidays in the vacation period according to the Colombian holiday calendar and maintain a permanent record of entitled vacation days. Our system offers:

Vacation Studies

Review entitled days for each year worked.

Service Bonuses and Severance Pay

Pay service bonuses and severance pay interest either within the periodic payroll or as separate payments for financial flexibility.

Severance Pay Management

Pay severance according to the associated fund.

Accurate Liabilities and Costs

Ensure liabilities and costs are recorded at their real value, matching paid amounts with the exact values required by IFRS.

ERP Integration

Generate respective outflows in bank accounts for separate payments if using ERP for SMEs.

Integration

Mercans facilitates seamless integration with various digital platforms:

Payroll Payments

File payments in the bank’s required format.

Fintech Ecosystem

Enable employee access to Libranza credits through our partner Linxe.

Social Security Operators

Integrate through the PILA file in the standard format used in Colombia.

Year-End XML Generation

Create XML for Consolidated Severance Pay Liabilities and Severance Pay Interest.

DIAN Integration

Transmit Electronic Payroll events and generate the Exogenous Information Annex for DIAN.

Upcoming Integrations

New integrations with Digital Ecosystem Allies are forthcoming.

Social Security

Mercans manages social security and parafiscal contributions efficiently:

Contribution Calculations

Accurately calculate social security and parafiscal contributions.

Law 1393 Compliance

Apply Law 1393 for non-salary concepts.

Contribution Differences

Precisely provide the difference between contributor payments and the total due by PILA.

New Developments

Handle PILA with updates on independent lines and contribution caps of 25 SMLV for social security subsystems.

Flat File Generation

Generate the flat file compatible with any operator.

Type K Forms

Manage Type K forms for university interns.

Payroll Implementation

Payroll Implementation

Mercans ensures a smooth transition to our Payroll System in Colombia through a meticulously designed implementation process. Our approach is tailored to meet each client’s unique needs, with timelines and deliverables adjusted based on factors like complexity, data availability, and the number of required parallel runs. Here’s an overview of the key steps involved:

Implementation Planning

  • Project Resource Allocation: Assign project resources and define roles clearly.
  • Kick-off Meeting: Conduct an initial meeting to set objectives and confirm project scope.
  • Implementation Calendar: Develop a detailed calendar and plan for the implementation process.
  • Welcome Package: Provide a package with project details and key contacts.
  • Progress Updates: Schedule regular update calls or emails to track progress.
  • Scope Approval: Secure client sign-off on the project scope.

Requirements Gathering

  • Workshops: Organize workshops to thoroughly understand and document client needs.
  • Business Blueprinting: Detail requirements and perform a gap analysis to identify necessary customizations.
  • Client Approval: Obtain approval on documented requirements to ensure alignment with client expectations.
  • Regulatory Compliance: Compile a detailed list of payroll-specific requirements tailored to Colombian regulations.

System Configuration

  • Regulatory Compliance: Configure the payroll system according to Colombian regulatory standards.
  • Wage Type Catalog: Customize the catalog to include relevant pay components.
  • Data Integration: Set up data dictionaries and interfaces for seamless integration.
  • Reporting: Adapt reports to meet Colombian regulatory requirements.
  • User Experience: Configure Employee Self-Service (ESS) and Manager Self-Service (MSS) features for enhanced usability.

Data Migration

  • Data Transfer: Migrate employee and payroll master data with a focus on accuracy and completeness.
  • Client Sign-off: Obtain client approval on the migrated data to confirm its correctness.
  • Data Verification: Verify the integrity and completeness of the data before proceeding.

Test Payroll Run

  • Simulation: Conduct simulation payroll runs to validate system configurations.
  • Parallel Runs: Perform parallel runs with existing systems to ensure consistency.
  • Sign-offs: Obtain sign-offs on test runs to confirm accuracy.
  • User Acceptance Testing (UAT): Conduct UAT and address any identified issues.

Payroll Management Transition & Sign-off

  • Transition Plan: Develop a plan for transitioning to the live payroll process.
  • Training: Provide comprehensive training for all system users.
  • Hypercare Support: Implement a hypercare plan for post-go-live support, including an escalation process for critical issues.
  • Fallback Plan: Create a fallback plan to address potential disruptions.
  • Go-Live Checklist: Complete the checklist and secure final sign-off to confirm successful implementation.
Payroll Implementation
Payroll Integration

Payroll Integration

Mercans Global in Colombia stands out with its extensive international reach and advanced integration capabilities. Operating in 160 countries, including Colombia, Mercans maintains strong connections with tax authorities worldwide to ensure smooth compliance and efficient operations.

Recognized Trust Sources

National Certifications (Colombian Tax and Customs National Authority (DIAN))

Mercans’ Payroll Software is fully integrated with local tax authorities, including the Colombian Tax and Customs National Authority. This integration ensures that all payroll processes align with local regulations, such as mandatory contributions and compliance. Our system provides accurate calculations and facilitates seamless reporting, keeping your business compliant with the Colombian statutory requirements.

These certifications affirm Mercans’ dedication to upholding the highest standards of compliance and operational excellence globally, including in Colombia.

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Integration with HCM/HRMS/Workforce Management Platforms

Mercans Payroll Software Colombia integrates seamlessly with leading HCM and payroll software platforms, providing a unified experience for HR administration and payroll processing. Compatible with platforms like UKG, Workday, Oracle, Darwinbox, Ceridian, and SAP SuccessFactors, our software facilitates streamlined operations. The Employee Self-Service (ESS) feature allows employees to manage payroll tasks—such as submitting worked hours or tax declarations—directly within the system. Once approved, these inputs are instantly processed, reducing errors and significantly enhancing productivity for both employees and HR administrators.

Tailored API Solutions

Mercans payroll platform in Colombia offers bespoke API solutions for a variety of industries such as hospitality, catering, theme parks, transportation, sports, construction, healthcare, events, promotional sectors, greenhouse horticulture, and fresh produce.

Xero Integration

Integrate Mercans payroll with Xero to seamlessly sync data, automate HR tasks, and streamline payroll processes. This integration saves time, minimizes errors, and allows you to allocate more resources to growing your business efficiently.

Colombia Payroll Reports - Standard, Statutory and Year-End Reports

Colombia Payroll Reports - Standard, Statutory and Year-End Reports

Report Name (English)Local NameLanguageDelivery ToFrequency
Tax & Social Security Report (Excel) - PayrollSeguridad Social y RetenciónSpanishSocial Security & TaxMonthly
Base of Withholding Report (Excel) - PayrollBase de RetenciónSpanishTaxesMonthly
Contingent Withholding Report (Excel) - PeriodRetención ContingenteSpanishTaxesMonthly
E Payroll Report (TXT/CSV) - Payroll (Period Master Data)Nómina ElectrónicaSpanishElectronic PayrollMonthly
Benefits of Payroll Software

Benefits of Payroll Software

Mercans delivers a robust payroll solution designed to streamline payroll administration and HR processes for organizations in Colombia. Here’s how our software can benefit your organization:

In-House Management

Handle payroll directly within our platform, removing the need for third-party processors.

Integrated HR and Leave Management

Consolidate payroll, HR tasks, and employee leave requests into a single platform, simplifying administrative functions.

Reduced Manual Effort

Automate routine tasks to reduce errors and ensure precise payroll processing.

Personalized Workflows

Tailor over 150 workflows to meet your specific business needs, boosting overall efficiency.

Time Savings

Redirect time saved through automation to focus on strategic business activities.

Effortless Connectivity

Integrate smoothly with leading HR platforms such as SAP SuccessFactors, Workday, and Oracle for a unified workflow.

Centralized Data Management

Maintain all employee data in one place for easy access, updates, and analysis.

24/7 Access

Provide employees with round-the-clock access to their personal information.

Mercans' payroll software Colombia offers a comprehensive, secure, and user-friendly solution, enhancing payroll processes and enabling you to focus on your most valuable asset—your people.

Transparent Pricing

Benefit from a fixed monthly fee with a per-employee charge and no hidden costs.

Dedicated Support

Receive expert assistance to maximize the software’s capabilities.

Secure Data Management

Ensure data protection with secure online processing and self-managed backups.

Compliance Assurance

Stay current with the latest fiscal and employment regulations through continuous software updates.

Mercans' payroll software Colombia offers a comprehensive, secure, and user-friendly solution, enhancing payroll processes and enabling you to focus on your most valuable asset—your people.

Core features

In-House Management

Handle payroll directly within our platform, removing the need for third-party processors.

Integrated HR and Leave Management

Consolidate payroll, HR tasks, and employee leave requests into a single platform, simplifying administrative functions.

Reduced Manual Effort

Automate routine tasks to reduce errors and ensure precise payroll processing.

Personalized Workflows

Tailor over 150 workflows to meet your specific business needs, boosting overall efficiency.

Time Savings

Redirect time saved through automation to focus on strategic business activities.

Effortless Connectivity

Integrate smoothly with leading HR platforms such as SAP SuccessFactors, Workday, and Oracle for a unified workflow.

Centralized Data Management

Maintain all employee data in one place for easy access, updates, and analysis.

24/7 Access

Provide employees with round-the-clock access to their personal information.

Additional Key Features

Transparent Pricing

Benefit from a fixed monthly fee with a per-employee charge and no hidden costs.

Dedicated Support

Receive expert assistance to maximize the software’s capabilities.

Secure Data Management

Ensure data protection with secure online processing and self-managed backups.

Compliance Assurance

Stay current with the latest fiscal and employment regulations through continuous software updates.

Mercans' payroll software Colombia offers a comprehensive, secure, and user-friendly solution, enhancing payroll processes and enabling you to focus on your most valuable asset—your people.

This content was prepared for informational purposes only. As local laws & regulations keep on changing, please consult your tax & legal advisors.
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