The Social Security System (SSS) has launched simultaneous Run After Contribution Evaders (RACE) operations. This aggressive campaign is being administered to 108 locations across the Philippines to encourage non-compliant employers to settle any contribution delinquencies. Doing so fulfills their legal obligations of paying both employer and employees’ share contributions. These operations, which commenced on April 28, are part of the SSS’s commitment to ensuring the social security protection of its 31.96 million employee-members.
Employers Beware: Neglect Your Obligations and Receive a Notice
The SSS President and Chief Executive Officer, Rolando Ledesma Macasaet, emphasized how crucial these synchronous RACE activities are because they affirm the organization’s commitment to ensuring social security protection. This is vital for all Filipino members because it means having access to benefits as they arise.
Macasaet said the SSS will issue notices to business employers who neglect their legal obligations of paying their employer and employees’ share in contributions. This act may be seemingly small, but it is comparable to a heinous crime that deprives members of the social security benefits they rightfully deserve.
Deadline Extension: Settle Delinquencies Within 15 Days
Delinquent employers will have 15 days to coordinate and settle arrears with their respective servicing SSS Branch Office. 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, including kasambahays like domestic workers and personal drivers, within 30 days from their actual employment date.
On top of that, employers must remit the corresponding monthly contributions of all their workers, whether they are staff in the office or home. Employers who fail to register their employees or have not deducted and remitted their correct SSS contributions will be penalized with a fine of P5,000 to P20,000. They may also face the possibility of imprisonment ranging from six (6) years and one (1) day to 12 years.
Appealing Employers to Report Employees and Remit Monthly Contributions
Most companies have updated contributions because of the formal business structure, many with HR that handles this with their payroll services. However, those employed in households may not be receiving proper benefits because bookkeeping and accounting systems are normally not formally executed in the home. Macasaet emphasized that all employers have a legal obligation to report their employees to the SSS.
Moreover, employers must also regularly remit their monthly contributions to protect them. With these contributions, employees will receive social security benefits during various contingencies from childbirth or maternity leave assistance to death benefits. As the head of the SSS, Macasaet requests all employers to be considerate to their employees because it can make a big difference in their lives.
Take Note: Penalty Condonation Programs Offered
To encourage employers to settle their delinquencies, the SSS is offering contribution penalty condonation programs. This would help employers in settling any arrears. Such programs include:
- Contribution Penalty Condonation, Delinquency Management, and Restructuring Program (CPCoDe MRP) for delinquent business employers
- Contribution Penalty Condonation and Restructuring Program (CPCR-P) for household employers
Rapid Expansion of RACE Operations
Following the success of their previous Run After Contribution Evaders (RACE) campaigns, the Social Security System (SSS) has expanded their operations to 108 locations across the Philippines. The SSS first launched RACE in 2017, targeting delinquent employers in Cubao, Quezon City and Greenhills, San Juan . The following year, the campaign leveled up and was extended to the regional level.
Now, with simultaneous operations being conducted nationwide, the SSS aims to encourage non-compliant employers to settle their contribution delinquencies and fulfill their legal obligations. Everyone is enjoined to do their part or face legal consequences abiding by the full tenets of the law. If you need assistance, our accounting team is here to help you settle arrears. It is your legal obligation to provide these contributions, or you and your employees will miss out on the social security benefits you rightfully deserve!