Being in the banking industry for several years, I have met and developed personal and business relationships with clients who are either owners of big and small-scale businesses or those who are either partners or incorporators of such firms.
Indeed, the resilience of the Filipinos during this pandemic is truly admirable and worth emulating. For the past few months, we have recorded several individuals who were laid off from their jobs as well as a number of businesses that have closed due to bankruptcy since Covid-19 struck our country. Even then, we have seen in the news the growing number of overseas Filipino workers that were repatriated due to the global impact of the virus. But despite all these hardships and challenges, some OFWs were able to start anew by starting their own business.
You’ll see them everywhere, but mostly in various social-media accounts like Facebook, using online advertising, which is free of charge. Noteworthy to mention that majority of their products are mostly food and basic essentials, plants, furniture, household appliances, and many others. Even deliveries and so called pasabuy are now a hit, which is a version of online grocery or shopping that proved to be a safe means for buyers to avoid the virus because going to malls and other crowded areas like tiangges is not advisable.
By definition, an “employer” is “any person, natural or juridical, domestic or foreign, who carries on in the Philippines any trade, business, industry, undertaking, or activity of any kind and uses the services of another person who is under his/her orders. Simply put, if you own a business and you have people working for you, you are an employer.
Being an employer and business owner is fulfilling because you do not have to answer to anybody but yourself, and you have the freedom to do what you see fit for your own business. However, being a legitimate business owner and employer come with several tasks and responsibilities. Aside from making sure that you keep your business afloat and you are able to give salaries to your employees every 15th and 30th of the month, you also have to make sure that your business is legal. This means registering with the DOLE, BIR, SEC, and most importantly, with the Social Security System.
To register with the SSS, an employer must secure an Employer Number by accomplishing the Employer Registration Form, together with the Specimen Signature Card (SS Form L-501), and the original and photocopy of various required documents, depending on which legal personality you fall under, such as Single Proprietorship, Partnership, Corporation including non-stock/non-profit corporations, Foreign-owned corporation, Manning Agency with foreign principal, Cooperative, or Manpower Service Cooperative. However, employer registration is not yet done via online since this is still through the usual Drop Box System, which the company representative uses to submit documents to any SSS branch.
Generally, it is very important for them to have a registered My.SSS account also because this is where they can get their Payment Reference Number (PRN) for payment of SSS contributions and loans of their employees, view the real-time posting of payments, submit various forms such as Member Loan Billing Statements, among others. Having a My.SSS account is also cost-efficient to the employers because they don’t have to spend on transportation or have one of their employees leave the office. All they need is a computer and a good stable Internet connection. In just a few clicks, they can already file their SSS forms and documents in the convenience of their office or home.
Under the E-Services tab in the SSS web site, they can certify the loans and claims of their employees, submit Employment Report (R1A), Sickness Notification, Loan Collection List (ML-2), Contribution Collection List (R-3), Maternity Notification, register their Benefit Re-disbursem*nt Module and Disbursem*nt Account Enrollment Module as well as submit their SS Sickness Benefit Reimbursem*nt Application.
It is also important to know that employers must report their new employees on their first day of employment. However, they are still given 30 days from the date of employment to report them to the SSS using the Employment Report Form (SS Form R-1A) and submit it to any SSS branch or, given the current state of our country, through online using the employer’s My.SSS account in the SSS web site (www.sss.gov.ph). Their main responsibilities include paying in advance the SS and EC Sickness benefits due their employees based on the sickness notification approved by the SSS, as well as SS Maternity Benefits due to their qualified female employees. They should also constantly update their employees on the various programs and SSS policies. Moreover, certifying the submission of SSS’ necessary documentation is also required from them especially when their employees file for loans and benefits.
To avoid legal repercussions, employers are also expected to always comply with the rules and regulations promulgated by the SSC and the SS Law violations in non-payment and remittance of SSS contributions, among others. Failure to comply makes them liable to their employees and they must pay the benefits of those who died, become disabled, or reached retirement age wherein they will be charged of all unpaid contributions and a 2 percent monthly penalty for late payments, and be served a criminal, administrative or civil case punishable by fines or imprisonment. As long as an employer-employee relation exists under our laws, the statutory obligations of the former must be complied with.
Certainly, being your own boss and running your own business is very fulfilling. It also feels good to be able to help other people by providing them employment so that they can provide for their families.
In this aspect, SSS is always for the good of its working population especially those who are employed in the private sector.
Have a great day ahead!
Aurora C. Ignacio is SSS president and chief executive officer.
We welcome your questions and insights on the topics that we discuss. E-mail mediaaffairs@sss.gov.ph for topics that you might want us to discuss.
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