Outsourcing companies will submit quarterly reports to the IMSS and the Infonavit

Note published on May 4 in El Contribuyente, Noticias [News] Section, by Diego Coto.
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One of the items of the reform on labor subcontracting is that companies have the obligation of submitting reports every four months.

The reform on outsourcing was published in the Official Gazette of the Federation (DOF) on April 23 of this year. The most important change is that it prohibits subcontracting; instead, companies will only be able to contract specialized services from a registry organized by the STPS [Department of Labor and Social Welfare].

  • Other important items in the reform are:
  • The prohibition of personnel subcontracting.
  • The regulation of subcontracting of specialized services different from the corporate purpose and the main economic activity of the contracting company.
  • Registration before the STPS and subscription into the public registry of subcontracting companies of specialized services and works.
  • A fine of 2 thousand to 50 thousand UMAs [Units of Measure and Update] to anyone who provides subcontracting services without being registered before the Department of Labor and Social Welfare (STPS).
  • Joint liability in case of non-compliance.
  • The granting of a period of three months for subcontracted workers to become a part of the payroll of the true employer.
  • A cap on Employee Participation in Company Profits (PTU) at 3 months of salary or at the average of the last three years.
  • Obligations in IMSS [Mexican Social Security Institute] and Infonavit [National Workers’ Housing Fund Institute] matters, for companies providing subcontracting services, of presenting quadrimestral information.
  • Limitation of tax deduction and accreditation of payments made to labor subcontracting companies that are not registered before the STPS.
  • Joint liability for the parties contracting services in regard to the contributions for the workers providing the service.
  • Derogation of the withholding of 6% of the Value Added Tax (VAT) in subcontracting.
  • Formal obligations in ISR [Income Tax] and VAT matters in regard to information that must be provided by the contractor to the contracting party.
  • Deadlines for the entry into force and the application of these provisions are contemplated.

Quadrimestral reports

One of the items in the reform establishes that specialized services companies will have to provide quadrimestral reports to the IMSS and the Infonavit.

These reports will have to include the name, corporate name of the party with whom they entered into the contract, type of entity, corporate purpose and economic activity. Additionally, they will be submitted on the 17th day of January, May and September.

Thus, contracts that do not comply with tax obligations and social security dues can be prevented. Some specialists, however, do not look favorably upon this measure.

In an interview with Reforma, Óscar de la Vega, a lawyer at De la Vega & Martínez Rojas, said that it will be very difficult for the authority to review all reports and contracts; additionally, this will only be one more administrative burden for companies.

With information from Reforma and El Economista.