INSS Under Simples Nacional: How Payments Work

In other words, the fact that the CPP is included in the DAS does not eliminate the company's social security administration.

How the INSS Works Under the Simples Nacional System for Annex IV Companies

Companies included in the Annex IV follow a different system. In this case, the Employer’s Social Security Contribution is not part of the DAS.

This means that the company must collect the following separately:

• CPP of 20% applicable to payroll;
• RAT (Occupational Environmental Risks), the rate for which varies according to the activity’s risk level;
• Contributions to third parties, when required by law.

In practice, this brings the social security costs of these companies very close to those observed in the Presumed Profit e Real Profit.

That is precisely why service providers classified under Annex IV tend to have significantly higher labor costs than companies classified under Annex III.

This difference isn't always noticed by business owners when they start their company, but it can amount to tens or even hundreds of thousands of reais over the course of a year.

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What activities are listed in Annex IV?

Among the main activities subject to taxation by the Annex IV are:

• Construction;
• Security services;
• Cleaning;
• Conservation;

These companies enjoy the benefits of the Simples Nacional system with respect to other taxes, but do not receive preferential treatment for employer social security contributions.

For this reason, an analysis of the tax framework must take into account not only the DAS tax rate, but also the total payroll cost.

It is relatively common to find companies that analyze only the taxes on revenue and completely ignore the impact of payroll, leading them to the mistaken conclusion that a particular tax regime is more cost-effective.

Practical example: Why is Annex IV usually more expensive?

One of the best ways to understand the Impact of the INSS on Simples Nacional It involves comparing companies with similar characteristics but classified under different schedules.

Imagine two companies that generate revenue R$ 350,000 per month and have a payroll of R$ 100 thousand.

• The first company provides business consulting services and falls under the Annex III.
• The second company operates in the construction industry and falls under the Annex IV.

Although both have opted for the Simples Nacional tax regime, their social security treatment is quite different.

At the company listed in Annex III, the Employer's Social Security Contribution (CPP) It is already included in the effective DAS tax rate. Therefore, the company does not need to withhold 20% from payroll.

Companies listed in Annex IV, on the other hand, must pay, in addition to the DAS:

• Payroll tax levied on payroll;
• RAT (whose rate depends on the activity's risk level);
• Contributions to third parties, if applicable.

In practice, this could amount to a a significant increase in monthly payroll costs.

Now imagine that difference accumulating over an entire year. Depending on the company’s structure, the financial impact could exceed hundreds of thousands of reais.

That is precisely why the analysis of social security costs should be part of the tax planning since the company was founded.

Does the R Factor affect the INSS under the Simples Nacional system?

O R Factor It is a rule of the Simples Nacional tax regime applicable to companies taxed under Annex V of that regime, which provides as follows:

• When payroll expenses account for 28% or more of the company’s revenue, taxation must be based on Annex III, with a tax rate starting at 6%.

• When payroll expenses account for 28% or more of the company’s revenue, taxation must be based on Annex III, with a tax rate starting at 6%.

• When payroll expenses account for less than 28% of the company's revenue, taxation must be based on Annex V, with a tax rate starting at 15.50%.

In short, this rule encourages service providers to invest in their workforce, in exchange for a reduction in their tax burden and, consequently, in the weight of the Employer Social Security Contribution.

The Role of Accounting in Social Security Management

As tax laws become more complex and electronic cross-checks of the Internal Revenue Service As businesses evolve, accounting plays an increasingly strategic role.

Today, its role extends beyond payroll calculations and the generation of payment slips. An advisory accounting firm plays a direct role in decisions related to human resources management, corporate structure, tax planning, and financial control.

Among the main activities are:

• Review of the tax framework;
• Analysis of the impact of payroll on company costs;
• Monitoring of ancillary obligations;
• Validation of the information submitted to eSocial and DCTFWeb;
• Review of the partners' pro-labore compensation;
• Preventive audit of social security contributions;
• Support for inspections and administrative proceedings.

This ongoing monitoring significantly reduces the risks associated with social security liabilities and enables the company to make decisions based on reliable information.

Conclusion

Understanding how the calculation of the INSS under the Simples Nacional System It is essential for any company that wants to grow sustainably and ensure its operations comply with the law.

Although the Simples Nacional system simplifies the payment of various taxes, social security contributions require special attention.

Companies that fall under the Annexes I, II, III, and V collect the Employer Social Security Contribution through the DAS, while companies in the Annex IV remain subject to the CPP payroll tax.

In addition, obligations such as deducting employees’ INSS contributions, paying taxes on pro-labore payments, correctly submitting information to eSocial, filing reports on DCTFWeb, and managing FGTS Digital continue to require strict controls.

Social security legislation is directly linked to a company’s financial health. For this reason, periodically reviewing the tax framework, the partners’ compensation policy, and the payroll structure has gone from being a best practice to becoming a necessity.

A CLM Controller Accounting It provides advisory services to help companies properly structure their social security obligations, review processes, identify opportunities for cost savings within the law, and strengthen their tax governance.

Contact our experts and discover how efficient social security management can reduce risks and increase your business's competitiveness.

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