Summary.
Article 1 proposes new wording for Article 241 of the Criminal Code. It would punish with 3 to 5 years’ imprisonment a person who withheld employee and employer contributions when the obligation to pay them arose and fails to remit them to the Social Security Fund within 3 months of that obligation arising, provided the contributions exceed 1,000 balboas (B/.1,000.00). The provision also covers a person whom the Social Security Fund has required to release the withheld contributions. The conduct concerns contributions withheld and still owed to the institution, and ties the stated period to the arising of the payment obligation.
The same article proposes a prison term of 3 to 5 years for employers, their representatives, and other obligated persons who evade or prevent, in any way, the enrollment in Social Security of persons required to enroll. For this conduct, the text identifies misleading statements, malicious concealment, or any other deceptive device as means of producing that result. The provision covers both evasion of enrollment and other ways of preventing it, and applies the enrollment obligation to persons whose inclusion in Social Security is required.
Article 1 sets a prison term of 4 to 6 years for a person obliged to pay who withholds employee and employer contributions owed to the Social Security Fund without remitting them when the total amount withheld exceeds 100,000 balboas (B/.100,000.00) and/or when the withholding and failure to remit concern contributions for an employee under maternity protection. The proposed wording identifies those circumstances as grounds for the 4 to 6 year prison term. The article also provides for increasing the penalty by 1/6 to 1/3 for the employer, legal representative, or anyone who, in one way or another, orders a manager, administrator, or accountant to withhold the remittance of contributions.
Article 2 expressly states that the amendment concerns Article 241 of the Criminal Code. Article 3 provides that the proposed law would take effect 6 months after its promulgation in the Official Gazette. Given its content, the proposal relates to the Social Security Fund and the criminal provisions of the Criminal Code; it may be relevant to employers, their representatives, managers, administrators, accountants, other persons obliged to remit contributions, persons required to enroll in Social Security, and employees under maternity protection.
What it proposes.
- Withholding and remittance of employee and employer contributions.
- Mandatory enrollment in Social Security.
- Prison terms and increased penalties for the conduct described.
Who it would affect.
- Persons obliged to remit employee and employer contributions.
- Employers, legal representatives, and other obligated persons.
- Persons required to enroll in Social Security.
- Managers, administrators, and accountants who are ordered to withhold the remittance of contributions.
Key points.
- Proposes amending Article 241 of the Criminal Code.Art. 1
- Provides for 3 to 5 years’ imprisonment for withholding and failing to remit employee and employer contributions within 3 months of the payment obligation arising, when they exceed 1,000 balboas (B/.1,000.00), or for a person whom the Social Security Fund has required to release the withheld contributions.Art. 1
- Applies the same penalty to obligated persons who, through misleading statements, malicious concealment, or another deceptive device, evade or prevent mandatory enrollment in Social Security.Art. 1
- Establishes 4 to 6 years’ imprisonment if the total amount withheld exceeds 100,000 balboas (B/.100,000.00) and/or if contributions for an employee under maternity protection are withheld and not remitted.Art. 1
- Increases the penalty by 1/6 to 1/3 for an employer, legal representative, or anyone who orders a manager, administrator, or accountant to withhold the remittance of contributions.Art. 1
- States that the amendment concerns Article 241 of the Criminal Code.Art. 2
- Provides that the law takes effect 6 months after promulgation in the Official Gazette.Art. 3