SSS Issues Show Cause Orders to Non-Compliant Establishments in Quezon City, La Union, Tacloban, Davao Del Sur

The state run-Social Security System once again posted show cause orders to 43 business establishments nationwide during its fourth simultaneous Run After Contribution Evaders (RACE) Campaign on 25 July.

SSS President and Chief Executive Officer Aurora Cruz Ignacio said that all employers, whether handling small or large businesses, should comply with Republic Act 11199 or the Social Security Act of 2018.

“All employers should ensure the well-being of their employees by providing their right to social security protection. Under the law, they must register their business with SSS on the first day of operations, report their employees within 30 days from their first day of work, submit their employment records, and religiously pay their employees’ SSS contributions,” Ignacio explained.

Of the 43 non-compliant employers subjected to the RACE Operations, 15 were from Novaliches in Quezon City, 14 from Digos in Davao del Sur, nine from San Fernando in La Union and five from Tacloban in Leyte. Majority of these employers failed to remit their worker’s SSS premiums, register their business with SSS, and produce employment records.

All employers who were subjected to the RACE Operations are required to respond to the show cause orders within a non-extendable period of 15 days and explain to SSS why no legal action should be taken against them.

Ignacio reiterated that employers who continue to disregard their statutory obligations under the SS Act of 2018 may face criminal charges which include imprisonment of up to 12 years and payment of a fine ranging from P5,000 to P20,000.

“After presenting all the worst-case scenarios, we hope that all non-compliant employers will step up to become responsible business owners. We only want to provide your workers with the social security benefits they deserve. However, if you continue to neglect your duties, we have no choice but to use the full force of the law,” Ignacio said.

The SSS Chief also urged all delinquent employers to avail of the ongoing Contribution Penalty Condonation Program (CPCP) to conveniently settle their unpaid SSS premiums without paying the accumulated penalties. Employers have the option to pay their delinquencies either in full or installment basis. The program will only run until September 6, 2019.

“Employers can be spared from any legal action due to violation of the SS law if only they settle the unpaid premiums of their employees through the CPCP. Once employers have successfully paid their contribution delinquencies, their workers can finally avail the benefits and loan privileges being offered by SSS to its members,” Ignacio concluded.

In a span of two months, the SSS simultaneously held RACE campaigns and visited more than 100 establishments in 15 areas particularly in Mandaluyong, San Fernando in Pampanga, Mandaue in Cebu, Dipolog in Zamboanga del Norte, Binondo in Manila City, Cabanatuan City in Nueva Ecija, Dumaguete in Negros Oriental, Iligan in Lanao del Norte, Parañaque City, Bauan in Batangas, Koronadal in South Cotabato, Tacloban City in Leyte, Novaliches in Quezon City, San Fernando in La Union, and Digos City in Davao del Sur.