SSS Shifts Strategy to Help Employers Comply


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Social Security System: SSS Shifts Strategy to Help Employers Comply. Instead of solely pursuing legal action, they’re aiming to encourage employers to settle their complies through assistance and flexible payment approach plans.

SSS Shifts Strategy to Help Employers Comply 2024

This shift comes after identifying a significant number of unregistered businesses in Cebu and Bohol. SSS Visayas Central 1 Division head, Alberto Montalbo, announced the rebranding of their “Race” campaign.

From Enforcement to Education

Previously known as “Run Against Contribution Evaders,” Race now stands for “Relief Afforded to Challenge Employers.” This reflects the program’s focus on helping employers understand their SSS responsibilities and offering solutions for compliance.

Montalbo highlighted the positive results of this rebranded approach, particularly in attracting new businesses to Cebu by addressing their concerns about SSS.

Flexible Payment Plans

The SSS is exploring installment plans for employers to settle their outstanding contributions. This would allow employers to make a down payment of at least 5% and spread the remaining balance over a period of up to 24 months. The specific duration will depend on the total amount owed.

2023 Race Campaign Results

Unesco Pacarro Jr., head of the SSS legal department, reported that the 2023 Race campaign in Cebu and Bohol targeted 193 employers. Here’s a breakdown of the results:

  • (65) Businesses found to be unregistered with SSS.
  • (40) Employers who fully settled their delinquencies.
  • (10) Employers who made partial payments.
  • (5) Companies that had ceased operations.

The campaign recovered an estimated P36 million in unpaid contributions, with P30 million already collected as of March 2024.

Legal Action as a Last Resort

While prioritizing education and flexible payment options, the SSS did pursue legal action against nine employers who violated Republic Act 1161 (the SSS Law). These violations can result in fines of up to P500,000, imprisonment for at least six months, or both.

Employer Obligations

The SSS Law mandates that employers register their businesses, report employees from day one, and remit SSS contributions within a month of employment.

Race Continues in 2024

From January to March 2024, Race operations in Cebu cities identified P9.6 million in delinquencies and unregistered businesses. The most significant case involved a computer supplier company in Mandaue with over P1 million in unpaid contributions for 17 employees since 2019.

The SSS emphasizes the importance of employers prioritizing their employees’ futures by providing SSS benefits. This not only benefits employees but also encourages them to stay loyal and productive.

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