SHOW CAUSE ORDER. Social Security System (SSS) Acting Vice President for Operations Legal Services Divisions I and II Renato Jacinto S. Cuisia appeals to non-compliant and delinquent employers in Dumaguete City to settle their obligations. The SSS, on Thursday (June 27, 2019), posted Show Cause Orders at 11 establishments for alleged non-remittance of SSS contributions of their employees and/or under-reporting the number of their employees. (PNA photo by Judy Flores Partlow)
DUMAGUETE CITY – The Social Security System (SSS) on Thursday warned 11 business establishments here to settle their obligations soon or else face the consequences after they were found to have violated certain provisions under Republic Act 11199 or the Social Security Act of 2018.
Led by lawyer Renato Jacinto S. Cuisia, the acting vice president for Operations Legal Divisions I and II of the SSS central office, the team of national, regional and local SSS officials visited the 11 “non-compliant” employers as part of the agency’s Run After Contribution Evaders (RACE) Campaign.
Cuisia said the activity, which is done simultaneously in other parts of the country, such as in Cabanatuan, Binondo in Manila, and in Iligan City, is the first for Dumaguete and the province of Negros Oriental.
In an interview, Cuisia said these non-compliant employers have either failed to remit the contributions of their employees to the SSS and under-reported which means not declaring the exact number of employees, or both.
“This is a flagship program of the new leadership of the SSS under Aurora Ignacio, president and CEO, and with the new law being implemented that has a condonation program where non-compliant, delinquent employers can pay their arrears and contributions without any penalty,” he said.
Previously, the penalty was at 3 percent, but under the new law, it was reduced to 2 percent, he noted.
During the visit to each of the 11 establishments, Cuisia spoke to the manager, officer-in-charge, or proprietor to explain to them their violations and urged them to avail of SSS condonation program.
He said the violators are given 15 days to comply with the necessary requirements, such as updating of records, and have until September 1 to pay their delinquent remittances, without having to pay the penalty.
If they fail to do so, criminal charges can be filed in court against them and they will be asked to pay the contribution delinquency and accrued interests as well, he added.
The SSS team posted Show Cause Orders at these business establishments but Cuisia told them that they could still continue to operate.
“This is not a threat. This is just a reminder that you have an obligation to remit to SSS what is due your employees,” he said to the establishments’ representatives.
At least three of those whom Cuisia spoke to said they are willing to settle their dues as soon as possible with the SSS.
The establishments that have alleged non-remittances are New Yan Yan Commercial, Eden’s Kandingan, U Feel Fun Inc., Southdale Integrated School, Inc., Dumaguete Memorial Park, Nuat Thai, and Buffers Water Treatment and Technology.
On the other hand, Bagong Proceso Oficina Inc., Dumaguete Industries and Marketing Corporation, Tri-DM Construction and Engineering Services, and JM Trucking were also issued Show Cause Orders for alleged under-reporting of employees and non-remittance of SSS contributions.
The SSS is expected to collect an estimated aggregate total of PHP1.7 million in contribution delinquency from all of the 11 establishments if they are able to settle within the prescribed period.
But with penalties imposed, the amount would balloon to some PHP3.2 million.
Asked why the 11 establishments were chosen for Thursday's operation, the SSS officials said this was mainly because of complaints received by the local SSS office.
They said there would do another round of inspection soon as they will continue to go after delinquent employers in line with their mandate of providing social security protection to their workers. (PNA)
