What are the prohibited/ What can an ER do to avoid

fraudulent acts punishable litigation?

under the SS Act?
Obey the SS Law and its rules and regulations.

Penal sanctions are provided under Section 28 (Penal
Clause) of the SS Law, as amended, on the violations
or non-compliance of the legal obligations of the ER,
such as:
Failure or refusal to register employees (or
himself/herself, in case of the covered
self-employed) or to deduct contributions
from the employees’ salaries/wages and remit
the same to the SSS, the penalty shall be a fine
of P5,000.00 to P20,000.00 and imprisonment
of six years and one day up to 12 years without
benefit of probation.
Making or causing any false statement in
connection with any claim for benefit or
application for loan.
Receiving any money under the SS Act without
being entitled thereto with intent to defraud
any member, employer, or the SSS.
If the ER is experiencing financial difficulty, he/she
may avail of the SSS Installment Plan or Dacion en
Pago Program by submitting an application to the
servicing Branch Office (BO)/Large Accounts
Department (LAD) together with the required
supporting documents. The servicing BO/LAD, in
turn, shall screen the completeness of the
documents submitted and evaluate the financial
capability of the delinquent ER.
Who can be charged for violation
of ER legal obligations?
Owner – for sole proprietorships
Partners – for partnerships
President, General Manager, Trustees or Directors
of the Board – for Corporations/Cooperatives/
Associations

Altering, forging, or counterfeiting any device

prescribed by the SSC for the collection or
payment of any contribution required under
What must one do to report a
the SS Act. delinquent ER?
Other violations and their penalties are
provided under Section 28 of the SS Law, Go to the SSS branch nearest the place where the
as amended. ER conducts business and file a complaint against
them.
If possible, bring proof of employment.
What are the civil liabilities of
the ER?
Unpaid SSS contributions and penalty for late
payments thereon of three percent (3%) per
month.

Damages on unpaid contribution when

employee contingency arises.
Published by the SSS Corporate Communications Department
November 2017

Know your legal duties and
responsibilities to the Social Security
System (SSS) as an Employer. Ensure
the social security protection of your
employees and free yourself of any liability for
violation of Republic Act 1161 or the Social
Security Law, as amended by Republic Act
8282 or the Social Security Act of 1997.
What are the legal obligations of
an Employer (ER) with the SSS?
Register with the SS and secure their ER ID
Numbers by accomplishing the Employer
Registration Form (SS Form R-1).
Require prospective Employees (EEs) to
register with the SSS and present their SS
numbers for reporting to the SSS.
Report all EEs for coverage using the
Employment Report Form (SS Form R-1A)
within 30 days from actual employment date.
Deduct from the salaries/wages of EEs the
monthly SS contributions; pay ER share of
contributions, including Employees’ Compensation
(EC), and remit these to the SSS through branches
with tellering facilities or accredited banks and
collection agents within the prescribed schedule
of payments (the deadline of payment for
contributions and member loans depends on the
10th digit of the 13-digit ER number).
Submit to the nearest SSS branch office the
monthly report of their employees’ contributions
using the electronic Contribution Collection List
(SS e-R3) saved in electronic storage media (e.g.,
USB flash drive or compact disc), together with
the validated Employer Contributions Payment
Return (SS Form R-5) or Special Bank Receipt
(SBR) and SS Form R-5 on or before the 10th day
after the payment due date. Paper or hard copies
of the Contribution Collection List (SS Form R-3)
shall no longer be accepted.
The ER may opt to submit the SS e-R3 online if
he/she is registered at the My.SSS facility of the
SSS website (www.sss.gov.ph), provided that the
payment is already reflected in the system.
Maintain true and accurate records of their EEs,
which shall include employment records, official
receipts for payments of monthly contributions and
loan amortizations and recording of amounts
deducted from their salaries/wages, records of
sickness, injuries, and death of employees in manual
logbook or electronic file for work-connected
accidents. Such records shall be open for inspection
by the SSS or its authorized representatives
quarterly, or as often as the SSS may require.
Open work records such as payrolls, books of
accounts, and such other records that the Social
Security Commission (SSC) may require, for
inspection by the SSS.
Deduct from EEs’ salaries/wages the monthly loan
amortizations based on the scheduled payment
deadlines for SSS member loans and remit the same
to the nearest SSS branch office with tellering
facility or thru accredited banks using the Member
Loan Payment Return (SS Form ML-1) on the
scheduled payment deadlines.
The ER shall require new EEs to disclose their
existing SSS loans in order to continue deducting
and remitting the monthly loan amortizations. The
new EEs must secure from the SSS an updated
statement of loan account.
Submit to the nearest SSS branch office a monthly
report of employees’ loan amortization thru the
Member Loan Billing Statement (SS Form ML-2). For
ERs with more than ten (10) EEs, they shall submit
the electronic Loan Collection List (e-ML2) saved in
electronic storage media (e.g., USB flash drive or
compact disc) together with the validated SS Form
ML-1 or SBR and SS Form ML-1. For ERs with 10 EEs
or less, they may submit their loan collection list
either as e-ML2 or as paper/hard copy form.
The employer may opt to submit the SS Form e-ML2
online if he/she is registered at the My.SSS facility
of the SSS website (www.sss.gov.ph), provided
that the payment is already reflected in the system.
Register his/her or the company’s bank account
to the SSS Sickness and Maternity Benefits
Payment thru the Bank Program so that SSS
reimbursements are deposited directly and
safely to said bank account, instead of being
sent via check in the mail.
Pay in advance the following:
SS and EC sickness benefits due their
employees, based on SSS-approved
sickness notification.
SS maternity benefits due to qualified
female employees, based on SSS-approved
maternity notification.
Thereafter, file for reimbursement of sickness
and maternity benefits legally paid in advance to
employees.
Inform nearest SSS branch office using the
Employer Data Change Request Form (SS Form
R-8) of any changes/updates in their
data/records with the SSS, as well as temporary
or permanent cessation of business operations.
Keep their employees updated on the changes
in SSS policies and increases in their benefits.
Ensure that all forms submitted are properly
and accurately accomplished.
Submit an updated Specimen Signature Card
(SS Form L-501) annually.
Certify SSS-related documents for their
EEs when required for their claims.
Comply with the rules and regulations
promulgated by the SSC and
implemented by the SSS.