State-run Social Security System (SSS) is offering to help out small and medium-sized enterprises (SMSEs) in paying their employees’ unpaid contributions.
The SSS recorded a successful Run After Contribution Evaders (RACE) campaign throughout 2023, bringing P92 billion worth of unpaid remittances down in 2022 by 40 percent to P56 billion.
SSS President and Chief Executive Officer Rolando Ledesma Macasaet told reporters that they did 587 RACE operations and issued notices to nearly 5,000 delinquent employers nationwide in just last year.
“Majority [of the employers] have opted to settle their delinquencies either through full payment or via installment schemes, resulting in a record-high collection of P1.37 billion in 2023 from P1.15 billion in 2022,” he added.
When asked which among the business types are evasive in contribution, the SSS chief replied, “Small corporations usually have the most delinquencies.”
However, the SSS assured that they are open to offering flexible payment terms so that small and medium-sized enterprises (SMSe) can submit their employees’ contributions.
“[SMSEs] usually have around 10 to 20 employees, and we want to find a way to help them. [For example] restructuring, allowing them to have a certain number of payment terms, a 10 percent down payment… subject to approval,” the SSS chief said.
“As long as they [the businesses] can pay off their delinquencies,” he added.
The SSS also said that the Supreme Court encouraged them to take legal action against those who delay their employee’s contributions or do not submit to the security system.
The Commission on Audit (COA) reported nearly half a million delinquent employers who have failed to remit premium contributions, penalties, and damages. As a result, the state-run fund was able to file court cases against 2,422 errant employers.
Last year, the improved RACE Ops expanded into the mainstream branches, as well as pushed through the administrative collection warranty of issuance of a Warrant of Distraint, Levy, and Garnishment (WDLG).
This allowed SSS to take the necessary legal actions in partnership with various Regulatory & Law Enforcement Agencies to minimize unpaid remittances that affect employee security.
Despite the successful first-year run of its RACE operations, the SSS acknowledged the need to update the pension funds’ records, stating that “[we] discovered that many of the reported contribution collectibles were from establishments that no longer operated, resulting in overstated statements of accounts [SOAs] being issued by SSS.”
“SSS Account Officers and branch personnel visually inspected the establishments and discovered that many of these businesses had ceased operations,” Macasaet added.