THE employer is a very important part of the equation in providing social-security protection to workers in the private sector. For every peso that a worker contributes, the employer contributes P2 on his behalf, i.e, the employer saves more on behalf of his employee.
An employer may be a a sole proprietor or business owner, a partnership, or a corporation. In order to sustain his business for the long term, he must know his duties and responsibilities under the law. One of the laws that an employer must abide with is Republic Act (RA) 8282, or the Social Security Act of 1997 which amended RA 1161, or the Social Security Law implemented in 1957.
What are the legal obligations of an employer under the Social Security System (SSS)?
Under the SSS law, the employer is obliged to register with the SSS by accomplishing the Employer Registration Form (SS Form R-1) and to report all his employees for coverage by accomplishing the Employment Report (SS Form R-1A). These forms must be submitted together, at the nearest SSS branch.
The effectivity of the employer’s compulsory coverage with the SSS starts on the first day he hires his first employee/s. The employer is given 30 days from the date of employment to report an employee for coverage.
He is required to deduct from his employees their monthly contributions; pay his share of contributions, including Employees’ Compensation and remit these contributions to the SSS within the prescribed schedule of payments. He is likewise required to submit to the nearest SSS branch the monthly report of his employees’ contributions using the Contribution Collection List (Form R-3) in electronic format together with the validated Employer Contributions Payment Return (Form R-5), and the Special Bank Receipt (SBR) on or before the 10th day after the payment due date. The employer can opt to submit the Form R-3, online via the My.SSS facility at the SSS website (www.sss.gov.ph). He can also submit his report using the electronic data interchange technology offered as a free service by BancNet online to the depositors of its member-banks.
Aside from the monthly contributions, the employer is also obliged to deduct from his employees’ salaries, the monthly loan amortizations based on the scheduled payment deadlines for member loans and remit the same to the nearest SSS branch with tellering facility or through accredited banks and payment centers using the Monthly Loan Payment Return (Form ML-1) on the scheduled payment deadlines. He should also send a monthly report of his employees’ loan payments by accomplishing the Loan Billing Statement (Form ML-2) in electronic format together with the validated ML-1 Form and Special Bank Receipt. Just like the contribution payment report, the loan payment report may be sent electronically through My.SSS facility.
Oftentimes employers don’t realize that it is their obligation to pay in advance the sickness and maternity benefits of their employees based on SSS approved sickness and maternity notifications. This is a rule that they should observe for the benefit of their employees who have immediate need for cash under these circumstances. Only when they have paid the benefits in advance to their employees can they file for reimbursement of the sickness and maternity benefits from SSS.
It makes good business sense for employers to be responsible and law-abiding. They gain peace of mind by being on the good side of the law and enjoy industrial harmony by keeping their employees happy.
To be continued
For more information about the SSS and its programs, call our 24-hour call center at (632) 920-6446 to 55, Monday to Friday, or send an e-mail to member_relations@sss.gov.ph.
Susie G. Bugante is the vice president for public affairs and special events of the Social Security System. Send comments about this column to susiebugante.bmirror@gmail.com.