- CHERYL G. CRUZ
The Social Security System said it ordered eight delinquent employers in the cities of Cadiz and Sagay in Negros Occidental to settle P2.7 million in unremitted contributions and penalties.
The Run After Contributions Evaders (RACE) team, headed by SSS Visayas West 1 Division head Lilani Benedian, with Operations Legal Department lawyers Jul Davi Saez and Maria Conchita Antipatia, visited these employers last week and found that six failed to remit the contributions of their employees, while two others did not register their establishments with the state-run insurer.
“The employers’ failure to remit their employees’ contributions prevents the latter from availing of various benefits and privileges,” Benedian said.
She encouraged delinquent employers to apply for the Pandemic Relief and Restructuring Program 3, or the Enhanced Installment Payment Program, that is ongoing until Nov. 21 this year.
“Under this program, we are offering them flexible payment terms ranging from nine months to 60 months, depending on the amount of total delinquency,” Benedian said in a statement, adding that qualified employers may coordinate with the Account Officers assigned to them for the reconciliation of records and settlement of contribution delinquency.
As per Republic Act 11199, or the Social Security Act of 2018, an employer is mandated to register his or her business on its first day of operation, report employees on their first day of employment, deduct from the employees’ monthly salaries their share of Social Security contributions, including Employees’ Compensation, and remit these, including the share of employer, to the SSS before the deadline.
Failure or refusal to comply with the provisions of the law is punishable by a fine of not more than P20,000, or imprisonment for not more than 12 years, or both at the discretion of the court, the SSS said.
It added that in line with its 65th anniversary this month, it will launch six new programs to benefit its members.
These include a new contribution payment schedule for farmers, fishermen, and other self-employed individuals in the informal economy; the Contribution Subsidy Provider Program, which promotes the spirit of bayanihan by encouraging individuals and groups to subsidize the monthly contributions of SSS members;
The consolidation of past due short-term member loans with condonation of penalty to help members pay their loan obligations; contribution penalty condonation programs for business and household employers; and a new voluntary provident fund program called the Workers’ Investment and Savings Program Plus.
SSS president and chief executive officer Michael Regino said the implementation of these new innovative programs aims to ensure social security coverage for informal economy workers, help members save more for their retirement, and for employers and members to settle their contribution and loan delinquencies.
“We would also like to encourage our members to work, save, invest, and prosper for a happy retirement. Part of this campaign is to teach our members on how to save for their retirement through this new voluntary provident fund program,” Regino added./CGC
