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BY Myla Eder Articles
The Social Security System (SSS) has recently warned employers to fulfill their legal obligations to their employees lest they risk criminal prosecution. Here’s how a payroll software for SMEs can make compliance a walk in the park through its automated government forms feature.
The SSS has noted that they have been receiving reports about unposted loan payments from employed SSS members. Some employers are said to be amiss in submitting the loan collections list to the SSS, which is the basis for crediting loan payments to the member’s account.
“Although we are still coping with the financial crisis brought about by the COVID-19 pandemic, business owners are still expected to fulfill their statutory obligations to secure the welfare and interests of their workers,” SSS President and Chief Executive Officer Aurora C. Ignacio said in a statement.
Blog: How a Payroll Software for SMEs Can Ensure SSS Compliance
Under Republic Act 11199 or the Social Security Act of 1997, employers are required to fulfill the following:
The table below shows the corresponding penalties for violating certain provisions under RA 11199.
Micro, small, and medium enterprises continue to bear the brunt of the impact of the pandemic. A study conducted by the Asian Development Bank showed that 61.7% of microenterprises, 49.1% of small firms, and 35.8% of medium-sized firms had no revenue in March 2020 because of business closures. MSMes that remained operational during the lockdown also showed a sharp drop in revenues.
These numbers may explain why as of June 2021, the SSS noted 11, 243 cases filed against delinquent employers nationwide. However, the continuing health and economic crises do not justify non-compliance as the SSS has already put measures for delinquent employers to settle their liabilities through an installment scheme.
Non-compliance may be as huge as failure to remit contributions or as simple as non-submission of contributions or loan collections lists. For some small and medium enterprises working on manual payroll, their admin might be amiss in submitting the required documents because of various reasons. There may be a lack of manpower because of the lockdowns or negligence on the part of the assigned personnel. All of these can be avoided by using an automated payroll software for SMEs.
Salarium is a complete payroll system designed with SMEs in mind. With Salarium, you will be able to automatically generate government forms relating to SSS membership, contributions and loan payments. Other statutory requirements such as forms pertaining to tax withheld, Pag-IBIG forms and Philhealth monthly contributions list can be generated with just a few clicks. Since the forms can be automatically generated after each payroll, you will be able to submit the required documents on time without worrying about the accuracy.
Using a payroll software for SMEs helps to streamline the processes in your organization and is more cost-effective than hiring more people to do the job accurately.
Learn more about Salarium’s products and services through our website https://www.salarium.com/. You can also sign up for a free 30-day trial.