A warning from the SSS to delinquent employers
>> Tuesday, June 4, 2019
EDITORIAL
Here’s a warning from the Social
Security System to employers who are not paying or delinquent in paying SSS
contributions of their employees. The state-run SSS cited a decision of the
Court of Appeals (CA), affirming the prison term imposed by the Quezon City
Regional Trial Court on celebrity dermatologist Joel C. Mendez for his failure
to remit more than P1.8 million monthly premiums to the pension fund while
urging delinquent employers to apply for the ongoing contributions condonation
penalty program. SSS president and chief executive officer Aurora C. Ignacio
said the decision of the CA to uphold the seven-year jail term imposed by the
RTC for Mendez’s violation of Republic Act 8282 or Social Security Law of 1997
was a clear indication that no one is above the law.
“We are very pleased that the CA upheld the decision of the
QC RTC. This serves as a reminder to employers on their obligations under the
law to religiously remit to the SSS the monthly premiums of their employees,”
SSS President and Chief Executive Officer Aurora C. Ignacio said in a press
statement. In a resolution released on 16April, written by Associate Justice
Edwin D. Sorongon, the CA denied the motion for reconsideration filed by Mendez
and the plea to inhibit the appellate court justices from resolving his case.
Mendez, who owns a chain of dermatology clinics in the
country, was sentenced in July 2016 by QC RTC Branch 88 Judge Rosanna Fe Romero
Maglaya to be imprisoned ranging from a minimum of six years and one day to a
maximum of seven years and to pay P15,000 worth of fine to the government. It
also directed Mendez to pay SSS a total of P1,865,657.50 representing unpaid
contributions from October 2011 to January 2013 with an interest of 3 percent
per month from July 2015 until full payment.
Ignacio advised
employers to apply for the ongoing SSS contributions penalty condonation
program to prevent facing similar consequence. The program will only run until
September 1, 2019. “The new Republic Act 11199 or the Social Security Act of
2018 provided assistance to delinquent employers by including a provision on
the contributions penalty condonation program to help them settle their
obligations and prevent their case from reaching the judiciary.
Our legislators understand that many employers want to pay
their employees’ contributions but encountered business mishaps in the past.
Now is the best time to settle any unpaid employee contributions with the
nearest SSS branch in your area and avail of the ongoing contributions penalty
condonation program for employers,” Ignacio said.
In March, the SSS started receiving applications and
proposals from employers who have expressed their intent to avail of the
contributions penalty condonation program for employers. Based on SSS Circular
2019-004, employers who are qualified to avail of the program are those who
have not yet registered with SSS including household employers, those with
pending or approved proposal under the installment scheme of SSS, those with
pending or approved application under the program for acceptance of properties
through dacion en pago of SSS.
In addition, delinquent employers with cases pending before
the Commission, Courts or Office of the Prosecutor involving the collection of
contributions and/or penalties, including those against whom judgment has been
rendered involving the collection of contribution and/or penalties but have not
complied with the judgment can also apply for the one-time amnesty program on
unpaid contributions
. Even those who settled all contributions before the
effectivity of RA 11199 but with unpaid penalties, and those who were given a
Warrant of Distraint/Levy/Garnishment (WDLG) or encumbrance can apply for the
ongoing condonation program on unpaid premiums of employers. It is also stated
that the employer may opt to submit an installment proposal to the Head of the
SSS Branch/Office or Large Account Department.
The installment payments shall bear an interest of 6
percent per annum. Upon submission of the proposal, the employer must remit a
down payment equivalent to at least 5 percent of its total contribution
delinquency. The employer should also, submit a promissory note promising to
pay the balance of the delinquency in equal monthly installments within a
period of four years with the first monthly installment paid within 30 days
after the date of approval of the proposal.
“The installment payments shall bear an interest of 6
percent per annum,” the circular read. “We highly encourage the employers to
avail of the program as it will be offered only for six months. This is your
chance to remit to SSS unpaid premiums, so your employees can fully enjoy all
the benefits of the pension fund,” Ignacio said. Short-term loan privileges of
qualified employees will be restored upon full payment of the unpaid
contributions by the employer.
SSS urged more than
132,000 employers to avail of the program which is expected to benefit close to
1.4 million employees in the private sector.
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