LEGAZPI CITY --- At least ten business establishments here were found to have failed to remit the social insurance contributions collected from their employees and non-production of employment records to the Social Security System (SSS) here.
In a surprise inspection held over the weekend by a special team from the Social Security System (SSS) central office, the business establishments were given show-cause order to explain their failure to remit social insurance contribution to the state-run social insurance program, according to Lawyer Renato Jacinto Cuisia SSS acting Vice President for Operations.
Cuisia in an emailed statement said that violators were issued a show-cause order directing them to comply and explain within 15-days or face legal action for failing to respond within the given period.
“Employers are mandated by the SS Law to deduct from the salaries/wages of their employees their share in the monthly SS contributions; pay their own share of contributions including Employees’ Compensation (EC); and remit these regularly to the SSS through branches with tellering facilities or accredited banks and collection agents based on the prescribed schedule of payments,” Cuisia said.
Cuisia led a team that inspected business establishment as part of their fourth wave of simultaneous nationwide Run After Contribution Evaders (RACE) Operations campaign against non-compliant employers.
During the operations, Show Cause Orders were posted at KDVM Grilling Point, Almiñe Glass and Aluminum Center, Sampaguita Tourist Inn, Funeraria Oro, Junzon’s Commercial, DE FEDBAC Corp, Family Kitchenette, YCS Restaurant & Catering Service, La Granja Boutique Hotel Corp., and Casablanca Management Group Co.
“Apart from these, employers should maintain accurate employment records and ensures that these documents are readily available for inspection by SSS and its authorized representative,” added Cuisa.
The owners of the 10 business establishments were encouraged to settle their delinquencies or comply with the requested records in order to avoid civil and criminal sanctions cited in the provisions under Republic Act 11199 or the Social Security Act of 2018.
SSS Legazpi branch data said that out of the 5,040 active employer accounts, about 68 percent or more than 3,400 employers were non-compliant.
“That’s why we immediately scheduled RACE Operations here in Legazpi to remind delinquent employers to settle their obligations to SSS,” Cuisia said.
“Employers who were proven to have violated the SS Law faces a maximum of 12 years imprisonment. Aside from this, the court will also require them to settle the total amount of delinquencies and pay penalties,” said Cuisia.
The SSS, however, reminded all delinquent employers, including those employers who were subjected to the RACE Campaign, to avail of the ongoing Contribution Penalty Condonation Program until September 6, 2019.
“We understand that most of our employers are currently experiencing financial distress that’s why we are offering this special program for them to conveniently settle their contribution delinquencies without paying the accumulated penalties” said Cuisia.
RACE Legazpi is part of the 5th simultaneous operations on July 30. Other areas in Luzon that were visited by the RACE Team were Tuguegarao, Cagayan; and San Pablo, Laguna.