How to register a new employee in SSS? Instruction for employers
In order to register an employee with the Social Security System (SSS) in the Philippines, employers must go through a specific process that complies with the requirements of the Social Security Act. This article details the steps to register an employee, the documents required, and the responsibilities of the employer and employee.
Steps for Employer Enrollment of Employees in SSS
1. Obtain an SSS Employer Number
Before enrolling employees, an employer must first secure an SSS Employer Number (EN). This can be done by submitting a registration form (SSS Form R-1) to the nearest SSS branch or through the SSS online portal. The employer must provide details such as the business name, address, nature of business, and contact information.
2. Register Employees
Once the employer has obtained their SSS Employer Number, they can begin enrolling employees. The following steps should be taken:
- Collect Employee Information: Employers must gather necessary information from employees, including their full name, date of birth, address, and contact details.
- SSS Membership Application: Each employee must fill out an SSS Membership Application Form (SSS Form E-1). This form requires the employee to provide personal information and must be signed by both the employee and the employer.
- Submission of Documents: The completed application forms, along with valid identification documents (such as a government-issued ID or passport), must be submitted to the SSS. Employers can do this in person at the branch or through the online services.
3. Assign SSS Numbers
Upon processing the application, the SSS will issue a unique SSS number to each employee. This number is essential for tracking contributions and benefits. Employers should ensure that employees are aware of their SSS numbers and keep records for payroll purposes.
4. Monthly Contributions
Employers are required to withhold the corresponding social security contributions (SSS) from employees’ wages. From 2024, the contribution rate is 14 % of the monthly payroll credit. At the same time, the employer contributes 9.5 % and the employee contributes 4.5 %. These contributions, together with reports, must be remitted to the SSS on a monthly basi
5. Reporting and Compliance
Employers must regularly report employee contributions and maintain accurate records. This includes submitting the Contribution Collection List (CCL) and ensuring that all contributions are remitted on time to avoid penalties.
6. Updating Employee Information
Employers should also be proactive in updating any changes to employee information, such as changes in marital status, salary adjustments, or changes in employment status. This ensures that the SSS has accurate records, which is crucial for processing benefits when needed.
What happens if the employer does not register the employees in sss?
| Consequence | Details |
|---|---|
| Monthly Penalties | Employers who do not register their employees within 30 days of employment may incur a monthly penalty, typically a percentage of the monthly contributions that should have been remitted for each unregistered employee. The penalties accumulate until the registration is completed. |
| Fines and Imprisonment | Under the Social Security Act, employers who fail to register their employees or withhold contributions from their wages can be fined between 5,000 and 20,000 Philippine pesos. They may also face imprisonment for a term ranging from six to twelve years, depending on the seriousness of the violation. |
| Liability for Benefits | If an employee suffers from illness, disability, or death before their registration is completed, the employer remains liable for paying the SSS lump sum equivalent to the benefits that the employee or their dependents would be entitled to receive. |
| Legal Action | The SSS actively pursues delinquent employers through its “Run After Contribution Evaders” (RACE) campaign, which can lead to criminal charges for failing to remit contributions. |
| Impact on Employee Benefits | Employees of non-compliant employers may be unable to access essential benefits, such as loans and pensions, due to insufficient contributions. |
| Fraudulent Practices | Failure to remit contributions or failing to enroll employees could be considered fraud, which carries a charge of “estafa” under the revised Penal Code. |
Responsibilities of Employees
Employees also have responsibilities in the enrollment process. They must provide accurate information when filling out the SSS Membership Application Form and ensure that they understand their rights and benefits under the SSS program. Employees should also keep track of their contributions and verify their SSS records regularly to ensure that their benefits are accurately reflected.
Conclusion
Enrolling an employee in the SSS is a crucial responsibility for employers in the Philippines. By following the outlined steps, employers can ensure compliance with the Social Security Act and provide their employees with the necessary social security benefits. This not only protects employees during times of need but also fosters a culture of social responsibility and support within the workplace.