The Social Security System (SSS) hopes to collect more than P5.3 billion in contributions from delinquent employers on the first year of its newest collection policy.
In a statement on Monday, the state pension fund said it would issuing warrants of distraint, levy and garnishment (WDLG) against about 60,000 erring employers nationwide.
WLDG involves seizing the employer’s personal and real pieces of property and getting money from his or her bank accounts that equal the amount of his or her unpaid contributions, interest and penalties included.
The policy is being implemented to ensure that employers would be unable to dispose their assets to avoid paying employees’ monthly contributions, SSS President and CEO Emmanuel Dooc said.
“This is a warning against delinquent employers who continue to ignore their responsibility [to]the SSS,” he added.
Issuing a WDLG is provided for under the Social Security Act of 1997.
The policy came a year after the SSS launched the Run Against Contribution Evaders program, similar to the Bureau of Internal Revenue’s Run Against Tax Evaders program.
Based on WDLG guidelines, SSS will issue a notice stating the amount an employer owes to the pension fund. After 15 days, another notice—Final Assessment Notice Before Seizure (FANS)—will be sent, instructing him or her to pay.
The employer must file a protest if he or she disagrees with the FANS. He or she must do so with a request for reconsideration, based on existing records, within 15 days of receiving the notice; or a request for reconciliation, based on newly discovered or additional evidence, within 30 days.
“The employers must file a protest within the prescribed period at the SSS office or Large Accounts Department that issued the FANS. Failure to protest the FANS will result in the issuance of the WDLG by SSS authorized signatories,” Dooc warned.
The SSS will schedule a public sale of the assets taken from the delinquent employer within 20 days, he said.
But if the employer pays the contributions he or she owes, including penalties, damages and expenses, before the sale, the warrant will be lifted and the assets restored to the owner, he said.
“Proceeds of the sale of property will be applied to the total amount of delinquency, including other expenses. However, if the proceeds are not enough, SSS can still collect the deficiency from the employer,” the SSS chief said.
If the WDLG fails because the employer has no more property or cannot be found, his or her case will be referred to the SSS’ Legal Enforcement Group for the filing of criminal charges.