High court rejects appeal in case involving delayed SSS contributions

THE Supreme Court (SC) rejected an appeal filed by a real estate company, which was found by a lower court to have failed to remit employee contributions to the Social Security System (SSS) on time.

In a seven-page resolution, the SC Second Division upheld a decision of the Court of Appeals (CA) against RGV Real Estate Center, Inc. for violating the Social Security Law for failure to remit contributions.

RGV also violated SSS Circular No. 52 for failing to remit salary loan/calamity loan amortizations of its employees.

“The SSS is a government agency that is imbued with the salutary purpose of carrying out the State’s policy of establishing, developing, promoting, and perfecting a sound and viable tax-exempt social security system,” the SC resolution made public on Wednesday read.

The SSS had repeatedly issued Demand Letters seeking the payment of more than P3 million representing employee contributions.

RGV also availed the condonation program, which allows members with outstanding balances to settle their arrears by installment. In this instance, RGV still failed to comply with the condonation program’s rules.

The Social Security Commission first heard the case and found RGV liable to pay almost P7.5 million in unpaid contributions, interest, and penalties for late remittance.

The CA then ruled the case to be not reviewable.

“Needless to say, the entitlement and amount of benefit and privilege of its (SSS) members are adversely affected by the non-remittance of the much-needed contributions. Any divergence from the rule subjects the employer not only to monetary sanctions but also to criminal prosecution,” the SC said in its resolution. — Chloe Mari A. Hufana