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6.1.6.2. National Social Security Institute – (Instituto Nacional de Seguro Social – INSS)Business concerns generally contribute monthly to the INSS, with their own funds. These companiesare required to pay 20% of the total compensations paid or credited in any way to employees, duringthe month; 20% to insured executives, self-employed workers, free lancers and other individuals(insured individual taxpayers, art. 22, I of Law 8,212 of 24 July 1991). Moreover, for the financing ofthe benefit relating to occupational accidents, companies pay: 1%, if the risk of an occupationalaccident is considered slight, 2% if the risk is average and 3% if the risk is serious (art. 22, II, of Law8,212/91). In addition, the contribution must be paid at 5.8% of the compensation paid to employeesand allocated to other sectors. Some corporate entities, such as financial institutions and insurancecompanies, in addition to the contributions mentioned above, are subject to a surcharge of 2.5%assessed on the same tax base on which the rate of 20% applies (art. 22, paragraph 1 of Law8,212/91, altered by Provisional Measure (Medida Provisória - MP) 2,158-35/01).Companies are also required to make the discounts and payments of the social security contributionsof their employees. These contributions range from 8% to 11%, of the respective compensation,observing the ceiling established by law (art. 20 of Law 8,212/91).Another thing that should be pointed out is that under Provisional Measure (Medida Provisória – MP)540 of 2 August 2011, converted into law 12,546 of 14 September 2011, the federal governmentintroduced a policy to lower payroll taxes in certain branches of economic activity. The purpose here isto help keep existing jobs and create new jobs.The companies engaged in the business activities covered by this new policy must calculate the INSSdifferently: they must apply a rate that may vary from 1 to 2% of the gross revenue arising from suchactivities, excluding any revenue arising from export and international cargo transport, the IPI and theICMS (Tax Substitution) passed on to buyer, cancelled sales and unconditional discounts.Whenever a company is hired to perform the services covered by the policy through an assignment oflabor, the hiring company must withhold and pay 3.5% of the value of the bill of sale or service invoice.If the company performs activities covered by the policy as well as activities not covered by the policy,then such company must calculate the INSS based on two different systems – payroll and revenue –according to the proportion of the revenue generated by each activity in the company’s total revenue.For example, if an activity covered by such policy accounts for 70% of the company's total revenues,then the company must pay the INSS by applying a rate of 1 to 2% on 70% of the company's totalrevenues and by applying a 20% rate on 30% of the company's payroll.42