Mexico: Legal and Administrative Regulation to Facilitate the Payment of Social Security Obligations
On April 13, the Technical Council of the IMSS issued a Newsletter to announce the guidance mechanisms to facilitate the execution of payment agreements regarding social security payments provided in Section 40 C and 40 D of the Social Security Law (LSS).
It is important to note that such section already provide the possibility of making deferred payments of social security fees, as follows:
- Section 40-C of the LSS provides the granting of an extension for the payment of due credits, assessment of constituent capital, apprises, charges and fines. The extension period may not exceed 48 months and charges will be caused during that period.
- Section 40-D of the LSS states that, for retirement, cessation, age and old age insurance contributions, may only be authorised for deferred payment for full periods due, without accessory forgiveness.
The Newsletter stipulates that the agreements shall include the payment of 20% of the employer’s fees and 100% of the employee’s fees.
Moreover, the interest to be caused, in accordance with section 8 of the Revenue Law, will ranges from an 1.26% to 1.82%, monthly, depending on the term chosen (12, 24 or more than 24 months) and the date of execution, which is highly expensive.
For the execution of such agreement no guarantee will be required, and the agreed commitments will be covered in a timely manner, as well as fines might be reduced by up to 90%.
The Newsletter also remarks section 31 of the LSS that states the discount of up to 7 days for absence in cases of absence of the employee, where the employment relationship continues. During these days, only the fee corresponding to Health and Maternity Insurance will be paid.
Such section also states that, after the absences covered by medical disabilities issued by the Institute, it will not be mandatory to pay the employer’s labor obligations, except of the retirement sector. We consider that it also applies in this scenario, and it is important to take that into account.
Finally, they newsletter also states as non-working day for the practice of procedures, diligences, hearings, notifications or requirements, from March 31, 2020 up to the date that the Technical Council determines.
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