Sneaky Employers in the Hot Seat for Dodging Profit Sharing
Mexican Social Security Institute (IMSS) tackles sneaky employers! Irregularities involving profit sharing (PTU) and disguised productivity bonuses have been detected. IMSS warns employers and their cohorts of the consequences. No more evading obligations!
Attention, fellow citizens! It seems like some sneaky employers in Mexico have been up to no good, shirking their responsibility to pay out profit sharing (PTU) to their hardworking employees. The Mexican Social Security Institute (IMSS) recently uncovered several irregular practices, and they've decided enough is enough. Brace yourselves for some enlightening information about what's been going on and what the IMSS is doing to put a stop to it!
To set the stage, the technical council of the IMSS has given its seal of approval to a criterion aimed at guiding employers on the exclusions they've been trying to slip through the cracks. These exclusions involve PTU payments that exceed the legal limit or are paid outside the specified timeframe, as well as payments disguised as productivity bonuses. Sneaky, right?
Let's delve into the nitty-gritty. The IMSS has clarified that these excluded payments are advance installments that, by law, should be made in the fiscal year following their generation. Additionally, any payments that go beyond the maximum amount established for PTU are also considered unacceptable.
The IMSS is not taking these underhanded practices lightly. They're concerned that such behavior distorts the very essence of the PTU benefit. These deceitful employers are defying the 60-day payment term after the annual Income Tax (ISR) is due, as well as the three-month limit for distributing PTU, which should be based on an employee's salary or the average of the past three years.
It gets even more interesting when we consider certain categories of workers. For employees who exclusively rely on their labor income and employers engaged in asset management or debt collection, the PTU amount must not exceed one month's salary.
So, what happens when employers fail to meet these requirements and make payments outside the stipulated time and legal limits? Well, the IMSS insists that the PTU benefit should be included in the workers' base contribution salary. No more getting away with it!
But wait, there's more! The IMSS has also uncovered another sneaky tactic employed by companies to evade their contributions. These crafty businesses offer productivity bonuses in various forms, attempting to justify why they shouldn't be considered part of the contribution base salary. Nice try, employers, but the IMSS is one step ahead of you!
The IMSS has made it crystal clear that these so-called productivity bonuses, whether they're labeled as incentives, commissions, bonuses, or gratuities, are indeed linked directly to the services rendered or the job performed. If employees don't work, they won't receive payment for these concepts. Sneaky attempts to evade payment won't be tolerated!
The IMSS emphasizes that regardless of the method used to provide these bonuses, be it gift cards, food vouchers, or employer's associations, they still hold their legal nature as receipts or bonuses. As a result, they must be included in the base salary. No loopholes, no escape!
But hold your horses; there's one last twist. It turns out that some companies are taking things a step further by concocting schemes to dodge taxes. They're using payments derived from a productivity program, through the cover of an employer's association, to justify their non-integration into the contribution base salary. Sneaky tactics are reaching new heights!
The IMSS isn't blind to these tricks, though. They've identified this as an improper tax practice in social security matters. Those who exclude payments that surpass the maximum PTU amount (as stated in Article 127, Section VIII of the Federal Labor Law), pay the PTU outside the established timeframe, or exclude productivity bonuses and other types of bonuses from the contribution base salary are all in hot water.
But wait, there's more! The IMSS is adamant about holding all parties accountable. Not only do the employers face consequences, but anyone who advises, counsels, provides services, or participates in carrying out these practices is also considered complicit in the irregularities. And just when you thought it couldn't get any juicier, even authorized public accountants who issue "clean and unqualified" compliance opinions to employers involved in any of these dubious acts will find themselves facing the music.
So, there you have it, folks! The IMSS has declared war on these dubious employer practices, ensuring that the hardworking employees of Mexico receive the benefits they rightfully deserve. Let's hope this serves as a wake-up call to those who think they can bend the rules. The IMSS is watching, and they mean business!
