Companies with delinquent SSS contributions gets a reprieve
The Social Security System (SSS) records show that the unremitted premium contribution has already reached an estimated P109 billion, while the penalties amount to P280 billion. SSS President Romulo Neri said they don’t expect to collect all those penalties because a lot of companies are so hard up these days, but added that employers need to pay their share of the premiums so that their employees can avail themselves of the benefits.
To help these companies, President Arroyo recently signed Republic Act 9903 or the Social Security Condonation Law of 2009, which grants a one-time condonation of penalties on delinquent SSS contributions by employers. The new law allows erring employers to remit their employees’ delinquent payments for premiums without paying penalties.
To take advantage of the condonation under the law, delinquent employers should remit their contributions within six months from the effectivity of the law. An alternative is submit a proposal to pay the same in installments, “provided that the delinquent employer submits the corresponding collections lists together with the remittance or proposal to pay installments.”
For the installment option, a downpayment of not less than five percent of the total amount should be made and the balance payable in equal monthly installments within a period not exceeding 48 months upon approval of the proposal. An interest of 3% will be applied on the balance.
“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 this Act, the penalties are deemed reimposed from the time the contributions first become due, to accrue until the delinquent account is paid in full,” according to the law.
Hopefully, delinquent employers could update their contributions now that penalties are condoned. For the sake of their employeesВ who are regularly deducted SSS contributions from salaries.
January 8, 2010
Tags: business news, Philippines, RA 9903, Republic Act 9903, SSS, SSS penalties condonation Posted in: Announcement, Corporations, Government, Labor, Law, Philippine business news, Philippines, economy, finance, money
One Response
our company is currently paying contribution penalties for the period February 1999 to February 2006 under the sss installment program (thru post-dated checks). are we covered by the condonation law? can we apply for the refund of the payments we have already made and ask sss to stop depositing our remaining post-dated checks?
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