Deferred payment of the patronage fees of the Guatemalan Institute of Social Security
On April 20, 2020, the Agreement Number 1472 of the Board of Directors of the Guatemalan Social Security Institute was published in the Diario de Centro América, through which the deferred payment of Employer Fees before the IGSS is regulated exceptionally and temporarily, as part of the economic and social rescue actions for the effects caused by COVID-19 in Guatemala. The referenced Agreement includes the following:
1. Deferred payment to social security for the employer's contribution. This time the Guatemalan Social Security Institute is authorized to defer the amount of the private sector employer's contribution, which corresponds to March, April and May 2020, without default, interest or administrative expenses.
2. Payment to social security for the worker's fee. The worker's fee must continue to be normally deducted and transferred to the Institute within the terms established through the Electronic Social Security Form.
3. Method of payment of deferred fees. The following options are granted to employers:
Make payments regularly
Make the payment of the referred months during July and September
Make the payment of the related months in 18 monthly installments from July 2020
Requirements to opt for the deferral of employer fees:
a) Be adhered to the System of Generation, Transmission, Validation and Payment of the Social Security Return in electronic form.
b) Submit a monthly Electronic Return statement in the IGSS Services section of the official page.
c) Having reported the payment of the labour fee in the electronic form
d) Have their data record updated in the Institute of the year 2020.
IMPORTANT POINTS TO BE TAKEN INTO ACCOUNT IN THE IMPLEMENTATION OF THE DIFFERENCE OF PATTERN FEES BEFORE THE IGSS:
When implementing the deferral of labour quotas, all employers must make specific considerations when choosing the option that is most convenient for them.
The IGSS 1472 Agreement, is already in force as of its publication on April 20, 2020, in the Diario de Centro América.
On April 20, 2020, the Financial Sub-department resolved to approve Resolution NUMBER 672-SGF / 2020, which contains the INSTRUCTION FOR THE PAYMENT IN A DIFFERENT PAYMENT OF THE IGSS, IRTRA AND INTECAP FEES BY THE PRIVATE SECTOR CORRESPONDING TO THE MONTHS OF MARCH, APRIL AND MAY 2020.
Among its main points we find the following:
1. The Private Sector Employer who is unable to pay the employer fees for March, April and May 2020 in the terms established for this purpose, may pay deferred and without any surcharge, in July, August and September respectively. The deferred payment of the indicated months must be made no later than the 20th of each month from July, except for September, which can be made until September 21.
2. Following the Agreement 1421 of the Board of Directors of the IGSS, the employer may continue to make payments of labour and employer fees. And for this unique time derived from the State of Calamity decreed in the Republic of Guatemala, the term is extended for you to make the labour quota for March 2020 no later than April 25, 2020.
3. Employers who do not opt for deferral or a regular payment may select in the system:
• The number of months you will pay your employer fees, as well as the Irtra, which can be done up to 18 months.
• Regarding the payment of the Intecap, this may be deferred only in 6 installments.
• The system will not allow changing the number of selected installments.
4. If you choose to defer, you must upload the electronic return as usual, with full payment. It will be at the time of generating the receipt that you must uncheck the employer fee. It will be issued only for the amount of the labour fee. The system will display a message; "Mr Employer, you will generate a receipt only for the labour fee and the employer fee will be transferred to your deferred fee under your responsibility, according to Agreement 1472 of the Board of Directors."
5. The data update must be done from the services page using your institutional username and password. Otherwise, the System will not allow you to continue with the process of generation, validation and transmission of the electronic return.
6. The System will be configured in such a way that in July you can upload the receipt of the March employer fee without surcharges. It is essential to consider that in July you must also charge the payment for June, both receipts must be paid no later than July 20, 2020. In the same way, it will proceed for August and September according to the Agreement 1421.
7. It is fundamental to consider that, in July, you must pay the March employer contribution, as well as the labour and employer contributions for June. In August you will pay April and July contributions and in September the May employer fee and the full month of August 2020. It is essential to evaluate opting for the 18-month payment option.
8. If there is a lack of payment of the employer fees of March, April, or May 2020, according to article 2 of Agreement 1472, the System will generate the surcharges for late payment for non-compliance. It will lose the agreed benefits, so IGSS is empowered to issue the corresponding official debit note and collect the debt from you judicially.
For more information and advice on the interpretation, scope and consequences of the indicated provisions, do not hesitate to contact us.