An official of the Social Security System (SSS) has warned employers that their failure to remit the contributions of their employees may result in cases against them.
Greta Fe Quayle, SSS South Mindanao-1 information officer, said during the Wednesdays @ Habi at Kape – Abreeza, said about half of the 13,000 employers under the jurisdiction of the office have failed to remit the contributions of their employees.
Quayle, however, said some of these companies have closed down without being able to inform the agency about their non-operation.
She said companies must consider that their failure to remit their contributions, based on Section 22 of Republic Act 8282 or the Social Security Act of 1997, will mean a 2% penalty every month.
The process, she explained, is that the agency will first issue a statement of account to the employer, and if the latter fails to respond after 10 days, it would issue a billing letter. Employers are given 25 days to either settle their accounts and pay for the penalty or challenge the billing.
If there is no settlement, then they will resort for legal action for the final demand letter and the employers are once again given 10 days to settle. If there is still no settlement, then a case is filed.
Penalized employers can have their bank accounts garnished or SSS can go after their properties.
Small-scale businesses that are on the brink of bankruptcy are given an option to pay their penalty in installments.
This provision is under Section 22 of Republic Act 8282 or Social Security Act of 1997.
Last year, SSS was able to reach a number of 30 cases per month, although Quayle said no employer has been convicted since it usually ends in settlement.
At present, the SSS is updating their list of employers and are checking the ones whose permits have been revoked.
