Did you know that there are fines for non-compliance with IMSS, INFONAVIT and SAT?
Let's start with the Mexican Social Security Institute (IMSS).
All individuals or legal entities that pay salaries are required by law to register their employees with the IMSS from their first day of work.
It is important to remember that there is a deadline of up to 5 business days to file the corresponding notice with the Institute.
Every pay period, every employee must receive his or her salary with its corresponding CFDI of payroll.
The CFDI includes the discounts applied to payroll which, among others, include the payment of employee contributions to the IMSS and INFONAVIT.
This means that employers withhold these contributions and we must pay them on the 17th of each month, plus the contribution for housing, retirement and health care.
Of course, non-compliance or untimely payment of labor-management contributions entails fines and surcharges.
When do fines apply for non-payment of IMSS and INFONAVIT?
Applicable in 2 cases:
- When the employer pays late
- When the employer has not paid and the IMSS notifies the payment request
The latter is the one that usually results in fines.
When the employer notifies that it is unable to pay on time, it proceeds as follows:
- The employer will pay an update of the labor-management contributions by applying the factor obtained by dividing the NCPI of the month to be paid by the National Consumer Price Index of the month in which it should have been paid.
- The surcharges generated will be the product of multiplying the updated labor-payroll dues by the sum of the late payment surcharge rate, from the month in which payment was due until the month in which payment is to be made.
The second case that does involve the payment of fines is when the IMSS notifies the payment requirement:
- Payment of a 40% penalty on labor-management contributions
- The 40% fine may be reduced by 20% if the employer pays within the first 15 working days following the day of notification.
In addition, the Administrative Procedure for Tax Execution (PAE) may be initiated.
This occurs when the authorities demand payment of the employers that were not covered and an additional charge is made for enforcement expenses.
What is the Administrative Procedure for Tax Execution?
This is a procedure/phase applied by the authority in the event of non-compliance with payment by the employers.
These phases of the Administrative Procedure for Tax Execution are:
- Writ of execution
- Service of the writ of execution
- Demand for payment
- Embargo
- Removal of depositary
- Auction
- Awarding of assets
- Application of the auction proceeds
Therefore, in accordance with the Social Security Law, if we, the employers, do not comply with our obligations, we will be subject to fines ranging from 50 to 350 minimum wages in force at the time of the imposition.
But be very careful, because based on Article 308 of the LSS, we would have to pay what has not been liquidated, and in case the amount exceeds thirteen thousand minimum daily wages , it could go from fines and seizures to imprisonment from 2 to 5 years.
In the case of INFONAVIT, fines are imposed for the total or partial omission of contributions and/or credit amortizations and are based on articles 30, section V, second paragraph of the INFONAVIT Law and 76 of the CFF.
The fine imposed for the omission of payment can range from 55% to 75% of the omitted contribution.
This can be avoided when the contributions and amortizations are paid out of time but spontaneously, that is, before INFONAVIT determines and notifies the respective tax credit.
How can I avoid IMSS and INFONAVIT fines?
Many employers overlook the consequences that can result from failing to make payments to the authorities, but these can be very serious.
Therefore, it is very important to have well identified the times, deadlines and forms of compliance with the IMSS, INFONAVIT and even the SAT (which we will see in our next article).
The best way to avoid these non-payment penalties is to have a payroll system that takes care of this for you.
Zentric is the best option, because in addition to performing payroll calculations accurately and professionally, it is the only system with a Zero Penalty Guarantee.
This means that if the authorities fine your company for any calculation error or omission on our part, we will pay it.
If you have any questions or comments, leave us a comment.
See you next time!
