Coverage of Guidelines
- Applies to all delinquent or non-compliant employers under Section 9 of the SS Act.
- Includes compulsory coverage employers legally obligated to deduct and remit employee/employer shares.
- Targets employers against whom final assessment notices are issued.
Purpose of the Guidelines
- Strengthen and complement existing policies for a uniform collection system.
- Employ summary remedies like warrants of distraint, levy, and garnishment.
- Enhance SSS enforcement capabilities for collection of due contributions.
Definition of Key Terms
- SSS: Corporate body implementing SS Act provisions.
- SSC: Governing body with rule-making and adjudicatory powers over SSS.
- Contributions: Due amounts including penalties at 3% per month until fully paid.
- Damages: Assessed where employers misrepresent or remit less than required, causing benefit reductions.
- Assessment: Written demand for unpaid contributions, penalties, and damages.
- Final and Executory Assessment: Occurs after failure to protest within time limits, precluding disputes.
- Warrants: Legal authorizations for action (distraint, levy, garnishment).
- Distraint: Seizure of personal/movable property, actual or constructive.
- Levy: Seizure of real/immovable property.
- Garnishment: Attachment of monies or bank accounts held by third parties.
Assessment of Contributions and Damages
- Monthly contributions presumed based on last payment, three-year average or available records.
- SSS can determine correct dues even after full payment.
- Damages computed as difference in benefits due to improper contributions plus pension equivalents.
Procedures for Assessment and Protest
- LOA and PAN issued first to notify employer of delinquency.
- FANS issued if no compliance within 15 days of PAN; failure leads to final and executory assessment.
- Employer may file Protest (Request for Reconsideration or Reconciliation) within 15 days of FANS.
- Protest interrupts finality period; BO/LAD evaluates and forwards for resolution.
- Resolution issued within 10 days; denial makes assessment final.
Issuance and Execution of Warrants
- Warrants issued by authorized officials based on delinquency amount thresholds.
- Warrants valid for 6 months; can be lifted for valid reasons.
- Actual Distraint: Physical seizure of items.
- Constructive Distraint: Listing and notice to prevent disposal.
- Garnishment: Direct attachment of bank accounts by serving warrants to banks.
- Levy: Annotation on property titles or tax declarations; may follow distraint if insufficient assets.
- Reports on warrant execution to be filed within 10 days.
Sale and Disposition of Distrained Property
- Public notice posted in at least two places including Office of the Mayor.
- Sale conducted by public auction or licensed commodity/stock exchanges.
- Bill of Sale issued for stocks and securities; company updates ownership records.
- Proceeds apply to delinquency, penalties, damages; excess returned.
- Expenses limited to actual preservation and sale costs.
Rights of Employer and Post-Sale Provisions
- Property restored upon payment before sale.
- SSS may purchase property; deficiency claims apply if proceeds insufficient.
- Employer may redeem sold property within one year by paying purchase price plus 12% interest.
- Forfeiture applies if no bidder; redemption rights persist within one year.
Reporting and Oversight
- SSS to report implementation status to the Social Security Commission.
Employer Remedies
- Petition to SSC within 15 days after denial of Protest.
Administrative Sanctions
- SSS officers failing duties under these guidelines may face disciplinary actions including dismissal.
Suppletory Application
- Relevant provisions of the Tax Reform Act, SSC Rules, and Rules of Court apply where practical.
Separability Clause
- Invalidity of any provision does not affect others.
Implementation and Authority of SSC
- SSC authorized to extend deadlines, issue procedures, and manage processes related to assessment, protest, warrants, sale, redemption, and other matters.
- Appeal to SSC does not stay execution unless enjoined.
- Forms and procedures to be issued within 30 days from circular approval.
Effectivity
- Circular effective 15 days after publication and submission to ONAR.