SSS to condone penalties on unremitted, delinquent employer contributions
by Robert E. Roperos
Butuan City (4 March) -- Social Security System (SSS) recently announced its implementing rules and regulations of the SSS Condonation Law of 2009.
In a memorandum circular issued by Romulo Neri, SSS President and CEO, all employers and employees identified were informed as to who may avail of the program.
Republic Act 9903 otherwise known as "Social Security Condonation Law of 2009", grants SSS a one-time authority to condone penalties on unremitted or delinquent contributions by employers.
The law covered any employer who is delinquent or has not remitted all contributions due andS, including those with pending cases either before the Social Security Commission, courts or Office of the Prosecutor involving collection of contributions and/or penalties, may within six months from the effectivity of the law to: (a) remit said contributions; or (b) submit a proposal to pay the same in installments, subject to the implementing rules and regulations which the Social Security Commission may prescribe, provided, that the delinquent employer submits the corresponding collection lists together with the remittance or proposal to pay the installments, provided, further, that upon approval and payment in full or in installments of contributions due and payable to the SSS, all such pending cases filed against the employer shall be withdrawn without prejudice to the refiling of the case in the event the employer fails to remit in full the required delinquent contributions or defaults in the payment of any installment under the approved proposal.
RA 9903 also stated, in the event that a delinquent employer chooses to submit an installment proposal, SSS shall give due course to approve and grant the same, subject to the implementing rules and regulations as the Social Security Commission shall prescribe.
However, the employer shall remit, upon submission of the installment proposal, a downpayment of not less than five percent of its total contribution delinquency. Also, the employer shall remit the balance thereof in equal monthly installments within a period not exceeding 48 months from the date of approval of the proposal, provided, that the installment payments shall bear an interest of three percent per annum.
The penalty provided under Section 22(a) of Republic Act 8282 shall be condoned by virtue of the SSS Condonation Law of 2009 when and until all the delinquent contributions are remitted by the employer to SSS.
In case the employer fails to remit in full the required delinquent contributions, or defaults in the payment of any installment under the approved proposal, within the availment period provided in RA 9903, the penalties are deemed reimposed from the time the contributions first become due, to accrue until the delinquent account is paid in full. For the reason of equity, however, employers who settled arrears in contributions before the effectivity of the law shall likewise have their accrued penalties waved.
With these developments, SSS Butuan Branch is calling all delinquent employers to have their penalties condoned, pay in full or installment their SSS contribution delinquencies. For inquiries, visit the SSS Servicing Branch for details or log on to www.sss.gov.ph. The condonation is open until July 31, 2010 only. (PIA-13) [top]