On June 26 of this year, the Technical Council of the Mexican Social Security Institute, [in Spanish: el H. Consejo Técnico del IMSS], approved guideline number 02/2023/NV/SBC-LSS-27-IV, in order to inform employers about the integration into the daily contribution wage of surplus from profit sharing, as well as productivity bonuses or of any other nature, pursuant to Article 27 of the Social Security Act [in Spanish: la ley del IMSS].
Profit sharing did not originally form part of the daily contribution wage, however, stemming from labor reforms, limits were established in which workers will not receive more than three months’ salary, or the average from the profits received from the last three tax years, that is, whichever amount is greater; with the aim of benefitting the workers. With regard to employers who do not respect the established limits, profit sharing will lose its nature and be considered as a bonus. Therefore, it must be integrated into the daily contribution wage.
Regarding payments carried out under the profit-sharing line item, those made outside of the time frame as indicated in the law (60 days after Income Tax for the year that must be paid), they will be considered as an advance profit sharing payout, and will thus lose their nature, and must therefore be integrated into the daily contribution wage.
With regard to bonuses, they do not lose their nature in terms of a bonus even when they are paid with a gift card or with food vouchers, that is, independently of the method of payment, and as such, they must be integrated into the daily contribution wage.
In regard to social security, it is considered an improper tax practice when:
- Whoever excludes the profit sharing payments from the daily contribution wage that exceed those limits as established by the law.
-Whoever pays profit sharing outside of the period as established by law, whether before or after.
- Whoever excludes daily contribution wage payments made through bonuses.
- Whoever advises or participates in the implementation of the aforementioned practices.
- Any chartered accountant who issues an opinion of compliance with tax obligations that is “unbiased and unqualified”, in which it states in the tax report that the employer knowingly commits the aforementioned practices.
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