TAX NOTES

Obligation of employers to advance SS benefits

WITH the primary purpose of providing timely social security benefits to employees who are unable to work due to sickness, injury, child birth, or miscarriage, SSS Circular No. 2017-006 reminds employers to pay the following benefits in advance:

Sickness benefit of their qualified employees every regular pay day or on the 15th and last day of each month; and,

Maternity benefit of their qualified employees which must be paid in full within 30 days from the filing of the maternity leave application.

Failure or refusal of the employers to pay in advance the sickness or maternity benefits of their employees will be subject to a fine of at least P5,000 to P20,000 and/or imprisonment of at least six years and one day to 12 years, at the discretion of the court, provided under Section 28(e) of the Social Security Law.

If the employer’s failure or refusal to pay the benefits thereof is committed by an association, partnership, corporation, or any other institution, the managing head, directors, or partners will be liable to the aforementioned penalties.

Source: P&A Grant Thornton

 

As published in SunStar Cebu dated 17 October 2017.