The Social Security System (SSS) recently launched simultaneous Run After Contribution Evaders (RACE) operations in 108 locations across the Philippines. These operations aim to encourage non-compliant employers to report all employees and settle their contribution delinquencies.
According to accounting services in the Philippines, doing these steps are fulfillment of the employers’ legal obligations. They must pay both employer and employee contributions as mandated by the law. The current operations took place on April 28 and is considered a big success in showing the SSS’s commitment to ensure the protection of 31.96 million employee-members.
Notice Issued to Employers Who Neglect Obligations
SSS President and CEO, Rolando Ledesma Macasaet, explained how essential these synchronous RACE activities are in ensuring social security protection. Their efforts in spearheading these programs ascertain social security protection for members for the years to come. Tax services in Manila explained that negligent employers who fail to report employees and pay appropriate share contributions will receive notices. These monthly contributions are reasonable, and failure to remit the right amount is an abhorrent crime that will deprive members of their social security benefits.
15-Day Grace Period Given to Settle Delinquencies
As of date, errant employers will only have 15 days to contact their respective servicing SSS Branch Office to settle any issues. They are required to settle their contribution delinquencies after receiving the Show Cause Orders. Macasaet reminded everyone that Under the Social Security (SS) Act of 2018, all employers are required to report for coverage to the SSS all their employees. This includes more than business employees, but also pertains to kasambahays like helpers, drivers, and nannies within 30 days from their actual date of employment.
More importantly, tax and audit services in the Philippines highlighted that all employers must remit the corresponding contributions of all their workers every month. Employers who fail to report employees and do not remit correct contributions are penalized with a fine of P5,000 to P20,000. Depending on the severity, employers can also be slapped with potential imprisonment ranging from six (6) years and one (1) day to 12 years.
Encouraging Employers to Report Employees and Remit Monthly Contributions
While most companies like sole proprietorships and corporations have updated contributions because of their formal business structure, those employed in households may have been neglected. This comes in the form of non-reporting and failing to deduct and remit the appropriate contributions. not be receiving proper benefits.
Macasaet reminded employers of their legal obligation to report ALL their employees, whether in the home or office, to the SSS and regularly remit their monthly contributions for the said staff. Paying for these government mandated contributions ensures that employees can receive proper social security benefits during various times of need like childbirth, sickness, and even death.
Offering Penalty Condonation Programs to Non-Compliant Employers
The SSS encourages all delinquent employers to step up and do their part. To help them out, the SSS is offering contribution penalty condonation programs. These programs are:
- Contribution Penalty Condonation, Delinquency Management, and Restructuring Program (CPCoDe MRP) for errant business employers
- Contribution Penalty Condonation and Restructuring Program (CPCR-P) for household employers remiss in their obligations
RACE Operations Expand Nationwide to Ensure Compliance
Because of the success of initial RACE campaigns, the SSS has expanded operations nationwide. The SSS launched its first RACE operations in 2017, targeting delinquent employers in Greenhills, San Juan, and Cubao, Quezon City areas. The following year, the SSS wanted to optimize the program so RACE was extended to the regional level.
With simultaneous RACE operations being conducted nationwide, the SSS hopes to achieve their goals in encouraging employee reporting and making correct monthly contributions for compliance. Through these initiatives, the SSS can fulfill their commitment to ensuring social security protection for the long haul.
Employers are requested to step up and do your part or face the law’s full force! Employees who have not received benefits are also encouraged to report. Remember, don’t be caught off guard, follow the rules, and avoid facing adverse consequences. If you need assistance, you can count on our accounting services in Pasig to help settle arrears. Reach out to our team and don’t miss out on social security benefits you and your employees deserve!