Court penalizes five business owners for violation of SSS law

The Regional Trial Court of Virac penalized five business owners for non-registration, non-reporting of employees and non-remittance of Social Security System (SSS) contributions in violation of the Republic Act 8282 or the Social Security Act of 1997.

SSS President and Chief Executive Officer Emmanuel F. Dooc said that a penalty of P10,000 per employer was imposed against Mercy S. Abang, owner of KSC Kakanin for non-registration; Cornelia R. Valeza, owner of Jezreel Unisex Fashion for non-reporting of employees; Janelle B. Pongan, owner of DJ’s Auto Repair Shop for non-remittance of contributions; Catalino T. Olfindo, owner of Cathy’s Restaurant for non-remittance of contributions; and Andrew G. Co, owner of Virac Bounty Commercial for non-remittance of contributions.

“This is a reminder for all existing and future employers that non-reporting as employer, non-reporting of employees and non-remittance of contributions are punishable under the SS Act. To avoid facing criminal and civil charges, they should faithfully comply with their obligations to SSS,” said Dooc.

According to the decisions, all five accused pleaded guilty to the crimes charged against them. Because of their admission, they were all fined by the court despite their subsequent compliance with the law after the cases were filed against them.

Based on records, Abang started its business in October 2015 but only registered in September 2016. Valeza started to hire its employees in March 1996 and November 2002 but only reported its employees in December 2016.

Meanwhile, Pongan, Olfindo and Co paid the contributions of their employees as well as the penalty imposed on their delinquencies in January 2017.

“The subsequent compliance of the five accused was not enough to justify the violations they already committed prior to the filing of the cases against them. We want to reiterate that once you violate the law even if you comply afterwards, there is always a penalty for it,” said Dooc.

Under the SS Act, compulsory coverage of employers will take effect on the first day of its operation and employees should be reported within 30 days from start of their employment. On the other hand, social security contributions should be paid monthly by the employer.

“Once again, we would like to remind our employers that they should comply with their obligations under the SS Act. The SSS shall be unrelenting and determined in running after abusive employers who flout the law at the expense of their hapless employees who are our members,” said Dooc.

At present, the SSS has been able to secure 45 employer convictions with a collectible delinquency of P52.7 million.

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