CERTAIN SEVERANCE PAYMENTS CLASSIFIED AS “EXEMPT INCOME” MUST NOW BE REPORTED IN FORM 499R-2/W-2PR

Section 1031.01(b)(11) of Puerto Rico’s Internal Revenue Code, as amended, exempts from income those severance payments that an employer makes to an employee on account of the employee’s separation for service without making a determination of just cause, provided such payments do not exceed the maximum amount payable under Law 80 of May 30, 1976, as amended.

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