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Monday, July 06, 2009

Employer gets 6 years in jail for P.3M unpaid SSS premiums

A Quezon City regional trial court sentenced the owner of a manufacturing company to a maximum imprisonment of six years for
failure to remit workers' contributions of about P300,000 to the  Social Security System (SSS), court records showed.

Judge Ma. Luisa Quijano-Padilla sent Sy Sin, owner of Palace  Enterprises and Manufacturing, to jail for failure to remit employees'
SSS contributions from January 1999 to December 2001.

"Accused is further ordered to remit to the SSS the premium  delinquency of P290,651.50 plus the three percent penalty computed
from the time of demand until fully settled, and to pay a fine of  P5,000," the judge said in a four-page decision.

Companies are required to report workers for SSS coverage within 30  days from employment and remit their premiums to the SSS on or before
the tenth day after the applicable month. Late contributions are charged a three percent monthly penalty.

Sin offered to settle his delinquency in his proposal to pay SSS in installments. SSS pursued the case against him when he reneged on his
promise.

SSS Senior Vice President for Legal and Collection Amador Monteiro  reminded employers that violations against the Social Security law are
criminal offenses.

"We hope this decision serves as warning to delinquent employers. Under the law, they face imprisonment of six to 12 years
and a fine of up to P20,000 on top of monthly penalties," he said.

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