P4 Software / cifraHQ

Payroll

Payroll

CifraHQ Payroll handles the full payroll cycle for Panama-registered companies under the PanamaPack 2026 engine. It applies current Caja de Seguro Social (CSS), Seguro Educativo (SE), and Impuesto Sobre la Renta (ISR) rates automatically. You define the periods; the system does the arithmetic.

What's covered

Area What it does
Employees Master record with identity, contract, bank accounts, and dependents
Payroll Concepts Catalog of earnings, deductions, and informational items used on every payroll line
Periods & Runs Period-based payroll cycle: create a period, prepare a run, calculate, close
Calculations Automatic CSS, SE, and ISR withholding per Panama law
Decimo Tercer Mes Three quarterly partidas per year: calculation, CSS at the special 7.25% rate, and payment
Vacations Accrual tracking and approval workflow under Arts. 53-76 Codigo de Trabajo
Terminations Guided 4-step wizard that calculates the full liquidacion by cause
Exports SIPE planilla (CSS), Form 03 (DGI annual), ACH payment file, payslips, constancia laboral
Compliance Calendar Real-time alerts for upcoming statutory deadlines
Cesantia Fund Employer trust deposits for prima de antiguedad and indemnization under Ley 44/1995
Incapacity Fund 18-day annual sick-leave allotment with employer/CSS split per certificate

In this section

Employees

Set up and maintain the employee master: personal identity, active contract, bank accounts, and dependents.

Payroll Concepts

Define the earnings and deduction items that appear on payroll lines: base salary, bonuses, loans, CSS, SE, ISR, and more.

Periods & Runs

Open a payroll period, prepare a calculation run, review the preview, and close the period to post the journal entry.

Payroll Calculations

How CifraHQ applies Panama statutory rates: CSS employee/employer splits, Seguro Educativo, ISR annualization and bracket withholding.

Decimo Tercer Mes

Create and pay the three annual decimo partidas. Covers quarter earnings formula, the special 7.25% CSS rate, and the payment lifecycle.

Vacations

Track vacation accrual (1 day per 11 working days), submit requests, and approve or reject them.

Terminations

Walk through the 4-step termination wizard: employee + cause, liquidation simulator, confirmation, and finalization.

Form 03 - Annual ISR Declaration

Generate the annual DGI Form 03 declaration for all Employees: cotizable salary, CSS retained, and ISR withheld, ready for entry into e-Tax 2.0 by May 31.

Exports

Download the SIPE planilla for CSS submission, ACH payment file, payslips, and work letters.

Compliance Calendar

Monitor outstanding statutory obligations and approaching deadlines for CSS, DGI, and labor law requirements.

Cesantia Fund

Employer-funded trust under Ley 44/1995 covering prima de antiguedad and unjustified-dismissal indemnity. Tracks monthly accruals, quarterly deposits, and termination payouts.

Incapacity Fund

Sick-leave ledger under Art. 199 CT. Tracks the 18-day annual allotment per employee, computes the employer/CSS split on each medical certificate, and resets balances on January 1.

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