(1) Whosoever, as an employer, withholds contributions of an employee to the social security system including employment promotion, regardless of whether wages or salaries are actually being paid, shall be liable to imprisonment not exceeding five years or a fine.

(2) Whosoever as an employer

1.  makes incorrect or incomplete statements regarding facts relevant to the social insurance system to the agency responsible for collecting contributions, or

2.  contrary to his duty withholds from the agency responsible for collecting contributions information about facts relevant to the social insurance system,

and thereby withholds the contributions to be paid by the employer for social insurance including employment promotion, regardless of whether salary or wages are being paid, shall incur the same penalty.

(3) Whosoever as an employer otherwise withholds parts of wages or salaries which he is under a duty to pay to another on behalf of the employee but does not pay them to the other and fails to inform the employee about the failure to make the payment no later than the due date or without undue delay thereafter shall be liable to imprisonment not exceeding five years or a fine. The 1st sentence above shall not apply to those parts of the wage or salary which are deducted as income tax on wages and salaries.

(4) In especially serious cases under subsections (1) and (2) above the penalty shall be imprisonment from six months to ten years. An especially serious case typically occurs if the offender

1.  withholds, out of gross self-seeking, contributions of a large amount;

2.  by using counterfeit or falsified documentation continually withholds contributions; or

3.  exploits the assistance of a public official who abuses his powers or his position.

(5) A person who hires persons who work or conduct a trade at home or who are equal to them within the meaning of the Work at Home Act, as well as the intermediary shall be equivalent to an employer.

(6) In cases under subsections (1) and (2) above the court may order a discharge pursuant to this provision if the employer no later than the due date or without undue delay thereafter

1.  informs the collecting agency in writing of the amount of the withheld contributions; and

2.  explains why payment on time is not possible although he has made earnest efforts to do so.

If the conditions of the 1st sentence above are met and the contributions are subsequently paid within the appropriate period determined by the collecting agency the offender shall not be liable. In cases under subsection (3) above, the 1st and 2nd sentences above shall apply mutatis mutandis.