Photo from Social Security System
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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
It is the policy of the State to establish, develop, promote, and perfect a sound and viable tax-exempt social security system suitable to the needs of the people throughout the Republic of the Philippines which shall promote social justice through savings, and ensure meaningful social security protection to members and their beneficiaries against the hazards of disability, sickness, maternity, old age, death, and other contingencies resulting in loss of income or financial burden. (Rule 2, Section 1, Implementing Rules and Regulations of R.A. 11199 or the Social Security Act of 2018)
The enactment of the Social Security Act of 1997 in the Philippines marked a significant milestone in extending comprehensive social security coverage to Filipino workers. This legislation established the Social Security System (SSS), a government agency entrusted with the administration of social security benefits. Employers are pivotal in the effective execution of this system, bearing important responsibilities outlined under the Social Security Act.
I. Registration of Employees
Employers are responsible for registering their employees with the Social Security System. This involves submitting necessary documents, such as the SSS Registration Form, together with supporting documents like birth certificates and valid IDs. Timely registration ensures that employees are eligible to receive benefits in the event of contingencies covered by the SSS.
II. Collection and Remittance of Contributions
Employers are obligated to withhold the prescribed SSS contributions from their employees’ salaries or wages. Alongside these employee deductions, employers must also make their own contributions, determined by a specific computation. These combined contributions fund a range of social security benefits, encompassing provisions for sickness, maternity, disability, retirement, and death benefits.
III. Timely Submission of Reports and Payments
Employers are required to strictly follow the designated timelines for both submitting reports and remitting contributions to the SSS. This encompasses the timely remittance of monthly contributions and the submission of the monthly collection list. Meeting these deadlines is of utmost importance in guaranteeing the continuous provision of benefits to employees and their designated beneficiaries.
IV. Accurate Reporting of Employee Data
Employers are responsible for maintaining accurate records of their employees, including their names, birth dates, and SSS numbers. Any changes in employees’ personal information, such as marriage or birth of a child, must be promptly reported to the SSS. This accuracy is essential for the proper administration of benefits.
V. Compliance with Reporting Requirements for Special Employment Arrangements
Employers need to familiarize themselves with the particular reporting guidelines in accordance with the specific employment arrangements, like part-time or temporary positions. It is imperative that employers accurately compute and remit contributions for employees under these specialized arrangements.
VI. Providing Necessary Information to Employees
Employers should inform their employees about their rights and benefits under the Social Security Act. This includes explaining the benefits they are entitled to receive and how these benefits are calculated. Clear communication helps employees understand the importance of social security contributions and how they contribute to their long-term financial security.
VII. Reporting Workplace Accidents and Occupational Diseases
Employers are required to report workplace accidents and occupational diseases to the SSS. This includes providing details about the incident, the affected employee, and the circumstances surrounding the incident. Reporting promptly ensures that affected employees receive the necessary benefits for their recovery and rehabilitation.
Employers in the Philippines play a vital role in the successful implementation of the Social Security Act of 1997. Their responsibilities encompass a range of tasks, from registering employees and collecting contributions to ensuring accurate reporting and timely submission of documents. By fulfilling these obligations, employers contribute to a system that provides vital economic security to Filipino workers and their families, aligning with the Act’s overarching goal of promoting social welfare and financial stability. This partnership between employers and the government remains integral to the social security framework in the Philippines.
Read also: Legal Obligations of an Employer under the Social Security Act of 2018
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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