Chihuahua, Chih., April 28, 2022.
Dear Clients and Friends,
We hereby inform the following information of relevance for your company.
On April 23rd, 2021, the labor outsourcing amendment was published, in which the terms and conditions of the Employee Profit Sharing (PTU, for its acronym in Spanish) were particularly included.
This amendment has resulted in various forms of interpretation and has led to further confusion, thus the need to clarify its content as follows:
First. – The addition of section VIII to article 127 LFT (Federal Labor Law, for its acronym in Spanish), whereby the amount of PTU is established, based on the parameter of a maximum limit of 3 months of the employee’s salary or the average of the salary earned in the last three years, depending on the most favorable for the employees.
Second. – In this amendment, Section II of the above-mentioned Article does not undergo any modification, therefore, it remains in effect and provides that employees in positions of trust who have a salary higher than that of the highest paid unionized employee will have the latter amount increased by 20% as their maximum salary.
Third. – The rest of the labor and tax provisions remained identical to those of previous years, therefore the process for their assessment and individualization will continue to be the same as in former years, by applying, at the end of the process, the maximum limit of the aforementioned addition.
Fourth. – The cap specified in the first bullet point benefits those companies whose distributable employee profit sharing result, when individualized, is greater than 3 months of the employee’s salary or the average of the employee’s salary received in the last three years, since there will be a surplus in their favor, in order to reduce the 10% of the distributable taxable income by their percentage.
Fifth. – Salary. PTU is defined as the amount received as a daily rate, without considering the bonuses, overtime, payments and other benefits that make up the integrated daily salary.
Sixth. – PTU-Payment Period. It must be paid within 60 days following the date on which the annual tax must be paid.
Seventh. – The distributable PTU is divided in two equal parts:
(a). – The first one is distributed equally among all employees according to the number of days worked by each one during the year, regardless to the amount of the salaries and;
(b). – The second one, is distributed in proportion to the number of salaries earned by the work rendered during the year.
Eighth. – PTU Joint Committee. It must be formed in order to develop the project in which the PTU of each employee is determined, the employer must provide the attendance list and the payroll list of the employees; if there is no agreement in the committee, the decision of the project will be determined by the Labor Inspector.
Ninth. – Other deadlines:
(a). – 10 days to deliver to the employees, a copy of the annual tax return and provide them with the exhibits to the annual tax return, as of the date of filing.
(b). – 30 days for the Union holder of the CCT (Collective Labor Agreement) or in its absence the majority of the employees, to file objections before the SAT (Tax Administration System, for its acronym in Spanish), from the date of submission of the tax return.
(c). – 30 days for the employer to comply with the resolution issued by the SAT.
(d). – 15 days for the employees to make observations regarding the distribution project prepared by the joint committee.
(e). – 15 days for the Joint Committee to resolve the objections raised regarding the distribution project.
Tenth. – Regarding sanctions. These have been determined in a parameter ranging from 250 to 5000 UMA’s (Unit of Measurement and Updating, for its acronym in Spanish), for the employer who does not comply with the obligations regarding PTU, taking into consideration the rule that provides that the sanction will be multiplied by the number of employees affected.
In this law firm we remain at your service for any inquires or comments regarding the above-mentioned information, we hope you find a correct decision making in your administration and compliance, we recommend being vigilant of the new provisions to be issued on this particular matter.
Published by,
Daniel Alfonso Jiménez Lara/Partner of the Labor Practice Group.
