The pandemic has caused major changes in our economic landscape resulting to reduction in working hours, massive job losses and business closures. It was a major challenge for the employers as they struggled to keep their business afloat with fewer customers and shorter operating hours while trying to stay compliant to government regulations for the welfare of their families and their employees.
The SSS is cognizant of this fact. In 2020, we implemented various Covid-19 Relief Packages for our affected members and pensioners. Part of this is the Small Business and Wage Subsidy Program (SBWS), which we facilitated for our small business employers who suffered financial difficulties during the nationwide lockdown. Even up to this day, we also know that some employers, through no fault of their own, already missed the opportunity to settle their contribution payments. Now that things are starting to ease up and businesses are slowly being re-opened, we want to help our employers fulfill their obligations with SSS.
Here’s good news: This November, SSS is offering the Contribution Condonation Penalty Program to all employers who are delinquent in the payment of SS contributions and/or penalties covering the applicable month of March 2020 and onwards.
Qualified under this program are those who are delinquent in the payment of SS contributions and/or penalties whose financial positions demonstrate a clear inability to pay the assessed delinquency arising from economic crisis, serious business losses or financial reverses, or resulting from natural calamity, or man-made disaster without fault on the part of the employer. For purposes of determining existence of economic crisis, areas affected by natural calamity, or man-made disaster without fault on the part of the employer, the SSS shall confirm the same from the National Economic and Development Authority (Neda), National Disaster Risk Reduction and Management Council (NDRRMC) and/or its local counterparts, or the concerned regulatory or investigating government agency, respectively.
To avail of this program, the employer shall submit an Application Form to the SSS Branch Office (BO)/Large Account Department (LAD) having jurisdiction over its account. The employer shall attach in the Application Form the proposed mode of payment in settling its delinquencies, the amount of which shall be determined by the responsible Account Officer of the BO/LAD who will provide the same to the employer prior to the filing of the application.
They also need to submit the following documents to support their application:
A. For Corporation, Partnership, Cooperative, Joint Venture, Association and Other Institutions
1) Certified True Copies of the latest General Information Sheet (GIS) or Articles of Incorporation, Articles of Partnership, Articles of Cooperation, Joint Venture Agreement and other documents showing the responsible officers;
2) Audited Financial Statements for the last two years stamped “received” by the Bureau of Internal Revenue (BIR); and
3) Duly notarized Secretary’s Certificate stating that the Board of Directors/Trustees (for Corporation/Cooperative/Joint Venture), has authorized, through a Board Resolution, the name and position of the authorized person to sign and apply for the condonation program on behalf of the employer.
4) Duly notarized certification signed by the General/Managing Partner/s indicating the name/s of the partner/s who will sign and apply for the condonation program on behalf of the employer.
In addition to the foregoing, in case of closure/termination/cessation of operation, anyone of its former director/trustee/partner/managing head shall sign the application and submit a duly notarized undertaking to settle the principal amount of delinquency in his/her personal capacity and anyone of the following supporting documents.
a. Letter of Request for Retirement/Closure of Business
b. Barangay Certificate of Closure from the Barangay where the business is located;
c. Original Partnership Dissolution Agreement or Notice of Dissolution for Partnerships;
d. BIR Form 1905 duly received by the BIR
B. Single Proprietorship and Household Employer
1) Income Tax Return (ITR) for the last two years stamped received by the BIR or a duly notarized
certification on the source(s) of funds to maintain the household (for Household Employer with no ITR); and
2) Sworn Statement/Affidavit on the reason/s for the inability to pay the assessed delinquency/ies without fault on its part. The applicant will be assisted in the preparation of the Sworn Statement/Affidavit by the responsible Account Officer.
All employers applying under this program shall, in addition to the above-stated requirements, submit the following:
a. For installment payment proposals, official receipt of the down payment which is not less than 5% of the amount of the principal delinquency; and
b. Official receipt of the full payment of the Employees Compensation (EC) contribution and penalty delinquency, if applicable.
All applications, including the proposed mode of payment, shall be processed by the concerned Accounts Management Section (AMS) of the BO or by the LAD having jurisdiction over the employer.
An employer may also settle the total assessed contribution delinquency through any of the following modes:
1. Payment in FULL of the total assessed contribution delinquency through any SSS Branch/Office or authorized collection agent (e.g., accredited banks, payment centers/partners) of the SSS, within 15 calendar days from receipt of the Notice of Approval by the SSS; or
2. An approved installment proposal to settle the total assessed contribution delinquency by the SSS shall earn an interest of 6 percent per annum. The employer shall be required to pay a down payment of not less than 5 percent of the amount of principal delinquency upon submission of the application and the balance of the delinquency to be settled for a maximum period of 24 months. The balance of principal delinquency shall be payable in accordance with the Schedule of Monthly Installment
Payments, as follows:
Total Amount of Delinquency Maximum Number of Monthly Installments
• Up to P1,000,000—Four months.
• Over P1,000,000 to P2,000,000—Eight months.
• Over P2,000,000 to P5,000,000 —12 months.
• Over P5,000,000 to P10,000,000—16 months.
• Over P10,000,000 to P20,000, 000—20 months.
• Over P20,0000,000—24 months.
Always remember to pay within the scheduled monthly installment as the Notice of Approval issued by the SSS shall be deemed cancelled under any of the following circumstances:
1. Failure to pay in full within15 calendar days from receipt of the Notice of Approval by the SSS;
2. Any default in the payment under the approved installment proposal within the period provided therein; or
3. Failure to pay the current contributions from the month of filing of the application until the approval by the SSS, and for the entire duration of the approved installment proposal, if applicable.
Interested employers may also visit our web site at www.sss.gov.ph and our official social-media pages for the complete details of this program.
Remember, one of the legal obligations of an employer to SSS is to pay their share of contributions and remit these to SSS. This is a perfect opportunity to get your accounts updated with the payments and maintain your good standing. By doing so, you not only relieve yourself of the burden of having to pay the penalties incurred, but you are also ensuring your employees are covered with social security protection in times of contingencies. Let us continue to work hand in hand to deliver this commitment.
Have a great week everyone!
Aurora C. Ignacio is SSS president and chief executive officer.
We welcome your questions and insights on the topics that we discuss. E-mail mediaaffairs@sss.gov.ph for topics that you might want us to discuss.