10 Non-compliant Employers Identified After Resumption of SSS RACE Operations

The Social Security System’s (SSS) “Run Against Contribution Evaders (RACE)” operations — a program set to go after employers who fail to remit the contributions of their workers — have been resumed after it was momentarily suspended due to the mobility restrictions implemented in the National Capital Region (NCR) during the global pandemic.

According to SSS president and chief executive Michael Regino, the program was continued on Friday in Metro Manila during which the state-run, social insurance program identified 10 non-compliant employers who have been evading the contributions of their workers. These employers were reported to have failed to remit the contributions of 95 SSS members amounting to ₱9.1 million from 95 SSS members. They had also incurred ₱17.1 million in penalties, totaling the contribution delinquencies to ₱26.3 million.

“These employers were found to be delinquent in the payment of contributions even prior to the pandemic. As a general rule, we have given them 15 calendar days from the date of the SSS’s visit to settle their obligations,” explained Regino. “We urge delinquent employers to voluntarily fulfill their obligations under the Social Security Law. They should be our partners in providing meaningful social security protection to our private-sector workers.”

Employers who fail to register their employees as well as deduct or remit the contributions of these employees may be fined ₱5,000 to ₱20,000 or imprisoned for six to 12 years, depending on the decision of the court, under the Social Security Act of 2018 (Republic Act No. 11199).

Amidst the pandemic, however, the SSS launched its pandemic relief and restructuring programs (PRRPs) late last year to offer delinquent employers an opportunity to settle their dues. Regino added that this “provides more amicable and flexible payment terms… to alleviate the burden of employers and members adversely affected” by the circumstances of the prolonged pandemic.

“Among these programs is PRRP 2, a social security contribution penalty condonation program for employers, which covers the applicable month of March 2020 and onwards. Qualified employers can settle their delinquencies through full payment or installment with the condonation of accrued penalties. This program will run until May 19,” he elaborated.

“Another is PRRP 3 or the enhanced installment payment program, which allows qualified employers to settle their past-due social security and employees’ compensation contributions in installment with payment terms ranging from nine to 60 months, depending on the total amount of delinquency. It will run until Nov. 22.”

So far, 15 RACE operations have been conducted nationwide in 2022 with the SSS planning to “carry out more in the coming days and months as it aims to conduct at least three operations for each of its branch operations divisions.”

Source: Inquirer