THE state-run Social Security System (SSS) has filed an average of 30 cases per month in the court against erring employers in Davao Region for failing to remit contributions of their employees in 2019.
SSS-Davao account officer and public information officer Greta Fe Quayle said there are about 40 to 50 percent of the 10,939 registered employers who are considered as delinquent for not remitting their employees contribution.
Quayle said none of these cases had reached conviction as they immediately settle it the time they received the court resolution regarding their contribution delinquency.
The SSS official said most of the erring employers do not settle their payment on time, causing them to be placed under delinquent status.
She said most of these employers are business owners of micro, small and medium enterprises (MSMEs).
Although she said they had also previously filed cases against “big time” employers, however, they were immediately settled.
Previously, she said SSS issues contribution notices to employers who failed toremit contributions within six months. But now, she said as early as two months they already issued notices to them.
“We are trying to avoid cases of employers complaining on the supposed delay not bill notices. Some employers are using this as an excuse,” Quayle said on Wednesday, January 22, during the Habi at Kape press conference at Abreeza Mall.
The official also cited that some employers who filed for bankruptcy or retirement of their business to SSS, causing them to be still considered as a member.
“We are now closely coordinating with the local government unit’s Business Bureau to update our list of existing businesses,” Quayle said.
She said there was a reduction of erring employers with cases after SSS offered the Contribution Penalty Condonation Program (CPCP), which ended in September last year.
She said the transitory clause of the Republic Act No. 11199 or the Social Security Act of 2018 provides that CPCP will be implemented for six months starting March.
The delinquent employer may face estafa and violation of Section 28(e) of Republic Act 8282 or the Social Security Act of 1997. Under Section 28(e) of the Penal Clause of RA 8282, failure or refusal of an employer to register their employees, or to deduct contributions from the employee’s compensation and remit the same to the SSS, corresponds to a penalty of fine from P5,000 to P20,000 and imprisonment from six years to 12 years.
Prior to filing of case, she said once they establish that the employer is delinquent, first they issue a statement of account and they will be expecting a response from the employer within 10 days where they would be given time to contest the statement of account and a chance to defend themselves.
Should there be no response within the prescribed days, SSS will issue a billing letter and supposed to be complied within 25 days. It will give the employers an opportunity to comply with the billing letter either in full payment or installment.
After which, if employers will not respond, they will refer the case to their legal department and the legal department will give the concerned employer another 10 days to comply, otherwise, they will now file the case before the court. Within 10 days if there is still no word from the employer, that’s the time they will file the case.
Meanwhile, she said they will be strictly imposing the Warrants of Distraint, Levy and Garnishment (WDLG) against delinquent employers causing the seizure and acquisition of personal and real properties and garnishment of bank accounts equivalent to the amount of unpaid contributions including interest and penalty.
Quayle said WDLG is provided for under Section 22 of Republic Act 8282, otherwise, known as Social Security Act of 1997.
She added these modes of collection are similar to the collection system of the Bureau of Internal Revenue (BIR) against delinquent taxpayers.
But they have not yet seized a property. (RGL)