Dissemination by the Mexican Social Security Institute of the legal and administrative instruments available to facilitate the payment of employer-employee contributions

The legal and administrative instruments referred to in the aforementioned communication are payment in installments and deferred payment. In this regard, it is important to point out that such instruments do not constitute a new incentive nor were they granted as a result of the health contingency caused by COVID-19, but rather were already provided for in the Social Security Law ("LSS"), in the Regulations of the Social Security Law on Affiliation, Classification of Companies, Collection, and Auditing ("Regulations"), in the resolutions of the Technical Council of the IMSS and, in matters not provided for in such laws, in the Federal Tax Code ("CFF"). In this sense, it is noted that employers may request from the IMSS payment in installments or deferred payment of certain items in accordance with the provisions of articles 40 C and 40 D of the LSS1. Both requests must meet certain specific requirements and, in some cases (i.e., employers with more than 300 workers), prior authorization from the IMSS is required. Nevertheless, it is important to emphasize that the Communication is focused solely on the request for payment in installments. In this regard, payment in installments may be requested for the payment of unpaid social security contributions, constitutive capital, adjustments, surcharges, and fines, which must be paid within no more than 48 months (following payment of 20% of the debt and full payment of 100% of the employee contributions withheld from the workers2). For its part, deferred payment3 may be requested to pay contributions to the Retirement, Severance at Advanced Age, and Old Age Insurance that were not paid in a timely manner, provided that the term does not exceed 48 months. In accordance with article 133 of the Regulations, the request for payment in installments or deferred payment shall be deemed authorized if the IMSS does not notify the employer of the respective resolution within the term of 20 business days counted as of the submission of the request (except in cases where prior authorization is required). Now, it is also noted in the Communication that if employers duly meet the agreed-upon commitments, the fines may be reduced in accordance with the provisions of Resolution number 187/2003 of the Technical Council of the IMSS, published in the Official Gazette of the Federation on July 15, 2003. The comments contained in this document do not constitute a legal opinion or advice, and the authorities may not agree with them. For additional information, please contact our experts, who can provide their opinion and further details on the matter: Fernando Moreno, Partner: +52 (55) 5258 1008 | fmoreno@vwys.com.mx Jorge Díaz, Associate: +52 (55) 5258 1008 | jdiaz@vwys.com.mx Diego Benítez, Associate: +52 (55) 5258 1008 | dbenitez@vwys.com.mx