BAGUIO CITY – Eight employers from Baguio City and La Trinidad, Benguet received written orders from Social Security System reminding them to settle their incurred delinquencies and comply with their legal obligations under Republic Act 11199 or the Social Security Act of 2018.
The notices were handed to the employers by officials from SSS Luzon Operations Group and SSS Cluster Legal Unit during the simultaneous conduct of RACE operations or the Run After Contribution Evaders campaign in Baguio City and La Trinidad last October 19, 2022.
“As stated in the notice, subjected employers are instructed to settle their legal obligations and or delinquencies with SSS within 15 days upon receipt of the letter. We are also offering to these delinquent employers an option to avail the Pandemic Relief and Restructuring Program or Enhanced Installment Payment Program (PRRP 3) and Contribution Penalty Condonation, Delinquency Management and Restructuring Program”, said SSS President and CEO Michael G. Regino of the 8 employers, two did not register their businesses to SSS; one was not able to produce any SSS records or documents for inspection; and 5 have delinquencies amounting to more than P989,000.
Under Republic Act 11199, employers are mandated to register their businesses to SSS and remit their employees’ contributions monthly. They are also mandated to update their employment records such as payrolls and contribution and loan collection lists and present these documents to SSS for inspection.
“Employers who violate the provisions of the SSS Law will face criminal charges. Nonfulfillment of their legal obligations means they are depriving their employees’ social security benefits and loan privileges.”, Regino added.
Social security benefits include Maternity, Sickness, Unemployment, Disability, Retirement, Death, and Funeral while loan privileges are Salary Loan, Calamity Loan and Emergency Loan.
With the Contribution Penalty Condonation, Delinquency Management and Restructuring Program, all single proprietorships, corporations, partnerships, cooperatives, and associations who are delinquent in the payment of SS contributions and/or penalties whose financial positions demonstrate a clear inability to pay the assessed delinquency arising from economic crisis, serious business losses or financial reverses, or resulting from natural calamity, or man-made disaster without fault on their part may apply under this program.
“Employers will have an option to pay their delinquencies sans the incurred penalties through one-time payment or monthly installment, depending on the amount of obligation”, Regino concluded.
Meanwhile, of the 14 employers subjected to RACE operations conducted by SSS Baguio Branch last April, six already submitted their records for reconciliation; six regained their good standing with SSS thru settlement of their delinquencies in full amount of P1,745,046.9; and two were endorsed to Cluster Legal Unit for filing of case.
The RACE campaign aims to intensify employer’s awareness of their legal obligations and promote the ongoing penalty condonation programs for business and household employers. It started in 2017 and has been implemented in various areas nationwide.