An employer is a person or organization for whom a worker performs services as an employee. Employers are required to withhold, report, and pay employment taxes on wages paid.
The definition of source employment income is generally treated as a Puerto Rican-sourced compensation when the individual performs the services while physically located in Puerto Rico. The source is not determined by where the wages are paid from but rather by where the services are performed.
An employer is subject to the reporting and withholding requirements covered under the Pay-As-You-Go (PAYG) system.
