Labor recommendations on deferred payment of corporate fees of the Guatemalan Institute of Social Security

Luis Enrique Solares Larrave

The Accord 1472 of the Board of Directors of the Guatemalan Social Security Institute, published in the Official Gazette impact the labor activities in the following manner:

1. The Board of Directors of IGSS agreed, for one time, to accept the differed payment of the employer's fee of the private sector for March, April and May 2020. This without incurring in interests or late payment fees or administrative charges in case such payment is not made, under the condition that the employer complies with the dispositions contained in the Accord No. 1473 of IGGS Board of Directors.

2. The differed payment of the employer's fee includes the Recreational Tax ("IRTRA") and the fee for the Productivity and Training Technical Institute ("INTECAP").

3. The worker's fee shall be generally reduced following the applicable regulation. It shall be transferred and delivered to IGSS, within the fixed dates indicated by the legal dispositions, through the electronic payroll of the social security. The employers have the option to continue with their regular payments and to opt for the benefit of the differed fees during July and September of 2020.

4. The employers who opt for the benefit of the differed fees shall notify IGSS of their choice. In case the employer doesn't notify IGSS and doesn't comply with the payment of the deferred months, the IGSS system will automatically distribute the outstanding amount in 18 monthly payments starting in July 2020. 

5. 5. In the event of non-compliance with deferred payments within the established deadlines, the IGSS may issue ex-officio debit notes, as well as a surcharge for late payment and administrative expenses to employers who incur in such non-compliance.

6. In case there's a lack of payment in the differed payments on the agreed dates, IGSS can issue a charge note and charge late payment fees and administrative fees to the employers.

a. The employers that wish to choose the benefit of differed fee payments, shall comply with the following requirements:

b. Monthly present their declaration in the electronic payroll in the services section of IGSS official website;

c. Report the payment of the worker's fee in the electronic payroll;

d. For IGSS to have their updated data registry as of 2020.

We can gladly provide you legal assistance with any inquiries you might have regarding this notice or any other labor related matter. Please don't hesitate to contact us.