Puerto Rico - Christmas bonus payout period is approaching! Bonus Payout Period is Approaching!

It is important to note that the Department of Treasury of the Commonwealth of Puerto Ricochanged the requirements for paying Christmas bonuses with the enactment of the Labor Transformation and Flexibility Act of 2017 (PC 0453) in January 2017.

The changes to the rules for the payment of Christmas Bonuses in Puerto Rico are detailed below.

TheLabor Transformation and Flexibility Act of 2017 (PC 0453)stipulates the following requirements regarding Christmas bonuses for employees hired afterJanuary 26, 2017.

Employees hired AFTER January 26, 2017:

· Must work at least 1,350 hours per year to be eligible for the bonus

· Will earn a Christmas bonus equal to 2% of wages earned, up to $600

· If an employer has fewer than 20 employees, up to $300

· May be paid 50% of the applicable Christmas bonus during their first year of employment

Employees hired BEFORE January 26, 2017:

· Must need to work 700 hours per year to be eligible for the bonus

· Shall continue to earn a bonus equal to 6% of up to $10,000 of wages earned ($600)

What you Need to Do:

An ADP Reporting template for Puerto Rico (PR) Christmas Bonus Report is available.This report allows you to adjust and update your company information to run the report at the end of the third quarter, or as needed.As a friendly reminder, this means ADP will no longer run this report for you as you will be able to do this with ADPR Christmas Bonus Template.

Access the application in ADP Workforce Now® navigating to: Reports>Custom Reports>Sample Reports> Puerto Rico (PR) Christmas Bonus Report –more information on Service Portal.

Important Note: The template report provided by ADP must be carefully reviewed to verify its accuracy before processing any Christmas bonus payments.