A practical legal guide for employers, employees, HR, and counsel

Scope & goal. This article explains what “non-remittance” of SSS contributions means, why it is unlawful, how liability attaches (and to whom), the consequences (administrative, civil, and criminal), how the Social Security System (SSS) enforces collections, and what employees and employers can do next. Philippine law governs—principally the Social Security Act of 2018 (Republic Act No. 11199) and its implementing rules, SSS circulars, and relevant provisions of the Civil Code, Labor Code, and Revised Penal Code.

1) SSS at a glance: who is covered and what must be paid

Who is covered. Coverage is compulsory for nearly all private-sector employees (including household and kasambahay workers under their own scheme), seafarers, and many categories of self-employed and voluntary members. For employees, the employer is the covered party responsible for registration and remittance.

What must be paid.

Monthly contributions based on the employee’s Monthly Salary Credit (MSC), shared by employer and employee at prescribed rates.
Employee’s share is withheld from wages; employer’s share is additional and cannot be deducted from the employee.
Separate from contributions, employers may also be responsible for short-term loan amortizations (e.g., salary, calamity loans) they agree to deduct and remit for employees.

When it’s due. SSS sets monthly deadlines for remitting the prior month’s contributions, using payment schedules keyed to the employer’s number or name range. In practice, this means the following month after the month worked. Deadlines and channels (banks, payment partners, e-Gov/e-Payment) are announced by SSS; late payments incur penalties and interest per month of delay until fully paid.

Proof of compliance. Employers must: (i) register and enroll employees; (ii) compute and withhold the employee share correctly each payroll; (iii) remit both shares on time using correct collection lists; and (iv) keep and show records (payroll, vouchers, remittance reports, receipts, and electronic Payment Reference Numbers/PRNs). Employees should see SSS deductions on payslips and later see posted contributions in My.SSS.

2) What counts as “non-remittance”

“Non-remittance” includes any of the following:

No deduction, no remittance. Employer fails to deduct and fails to pay any contributions at all.
Deducted but not remitted (“pocketing”). Employer withholds the employee’s share from wages but does not turn it over to SSS—this is the most serious pattern.
Short-remittance or under-reporting. Employer remits less than due (e.g., wrong MSC, excludes allowances forming part of the base, excludes some employees).
Late remittance. Paid after the deadline—penalties/interest accrue.
Failure to remit deducted loan amortizations. Employer withholds SSS loan payments but does not remit (this triggers separate liability).
Failure to register employees. Keeping workers “off-the-books” to avoid coverage.

Key point: For employees, non-remittance does not forfeit coverage. SSS may grant benefits if the employee proves employment and compensation—even if the employer failed to remit—then SSS pursues the employer for the delinquency, penalties, and damages.

3) Legal duties of employers

Register as an employer with SSS and enroll all eligible employees from Day 1 of employment.
Withhold the correct employee share and add the correct employer share every payroll.
Remit on or before the applicable SSS deadline through authorized channels using an SSS PRN and submit the Contribution Collection List with accurate employee IDs/MSC.
Maintain records for inspection and present them to SSS on demand.
Cooperate with SSS during audits and respond to show-cause, demand letters, and assessments.

Failure to do any of the above exposes both the employer entity and responsible officers to liability.

4) How liability attaches (entity and officers)

Direct employer liability. The corporation/partnership/sole proprietorship is primarily liable for unpaid contributions, penalties/interest, damages, and costs. SSS assessments become executory if unprotested within the period or after finality.

Officer liability. Officers, directors, partners, and responsible HR/payroll officials who authorize, consent to, or tolerate violations (e.g., approving payroll deductions but not remitting) may incur solidary civil liability and criminal liability under RA 11199 and related penal provisions. In practice, SSS and prosecutors include the President/Managing Partner/HR-Finance heads who had control over remittances.

Successor businesses / corporate dissolutions. Closure or dissolution does not extinguish contribution obligations. SSS can pursue remaining assets, enforce liens, and proceed against responsible officers.

5) Consequences of non-remittance

A) Administrative and civil

Assessment of delinquency. SSS computes principal (unpaid contributions), statutory penalty interest (per month of delay), surcharges where applicable, and damages.
Warrant of Distraint, Levy, and Garnishment (WDLG). SSS may levy bank accounts, garnish receivables, and levy/sell personal or real property to satisfy the assessment, similar to BIR powers.
Liens and preferences. Government contribution claims enjoy statutory preferences in asset distribution (subject to tax liens and preferred credits rules).
Denial of government clearances/permits in some cases until compliance is evidenced.

B) Criminal

Failure or refusal to register employees, deduct, and/or remit contributions (and failure to remit deducted loan payments) is a criminal offense under RA 11199.
The law prescribes fines and imprisonment (prison mayor range) upon conviction; each pay period/employee can constitute a separate count. Courts may also order payment of the delinquency with penalties and costs.
Officers who consent to or tolerate the offense are liable as principals.

Practical upshot: When an employer has actually deducted contributions or loan payments from wages but failed to remit, prosecutors often treat this as aggravated—and employees may pursue estafa/qualified theft theories alongside RA 11199 charges (subject to prosecutorial evaluation).

6) Prescription (time limits)

Civil/administrative collection by SSS for contributions is generally treated as a government claim subject to extended or special prescription rules; as a matter of enforcement policy, SSS pursues long-running delinquencies and applies penalty interest until fully paid.
Criminal actions under RA 11199 are subject to statutory prescription counted from discovery or last act of violation (exact computation is fact-specific); interruption occurs upon filing of a complaint or information.
Benefit claims have separate prescriptive periods under SSS rules (e.g., for sickness/maternity, etc.), but SSS may still credit unremitted periods after validating employment/wages and then shift the delinquency to the employer.

Because prescription can be outcome-determinative, counsel should compute limitations periods precisely from the records (payroll dates, deadlines, demand letters, filings).

7) How SSS enforces: process map

Detection & audit. Triggered by employee complaint, data mismatch (My.SSS shows gaps), cross-checks with BIR/DOLE, or routine inspection.
Notice of assessment/demand. Specifies periods, employees, principal, and penalties.
Protest period. Employer may file a written protest with supporting records within the stated period; otherwise the assessment becomes final.
Finality & collection. Issuance of WDLG, bank garnishment, levies, and third-party demands (customers, lessors) to collect receivables.
Criminal referral. For willful non-remittance, SSS files a criminal complaint with the prosecutor (often against the employer and responsible officers).
Settlement options. SSS may allow installment plans, confession of judgment, and participation in condonation/restructuring programs when offered.

8) Defenses and mitigations (for employers)

Good-faith error but promptly cured. Immediate full payment (principal + penalties) with corrected reports; penalty abatement is rare but may be negotiated under specific circulars (e.g., calamity, pandemic disruptions).
Documentation mismatch. Show that contributions were actually remitted (e.g., mis-tagged PRNs, bank proof, or wrong SS numbers) and request reposting.
Installment plan. SSS often grants structured payment plans with down-payment and scheduled amortizations; default revives full enforcement.
Condonation/restructuring programs. When SSS opens a time-bound program, employers may settle penalties and interest in whole or in part subject to terms.
Lack of officer participation. Individual officers may defend by showing no authority/control over payroll/finance and no tolerance or consent to the offense.

Note: “Financial difficulty” alone rarely excuses non-remittance, especially where deductions were taken from employees.

9) Employee remedies (step-by-step)

Verify your record. Log in to My.SSS and download your contributions matrix; keep payslips showing SSS deductions.
Write HR/Employer. Send a dated demand for posting/remittance attaching payslips and asking for a written update within 5–10 days.
File a complaint with SSS. Visit your SSS branch or use official channels to lodge a non-remittance complaint; attach employment proof, payslips, IDs, and any replies from your employer.
For urgent benefits. When filing sickness/maternity/disability/retirement claims, inform SSS of gaps caused by employer non-remittance. SSS can credit contributions upon validation and pursue the employer for the delinquency.
Consider criminal/civil actions. If deductions were taken but not remitted, ask SSS about a criminal referral; you may also consult counsel on estafa or damages claims.
Parallel DOLE concerns. Unpaid wages/underpayment/illegal deductions are DOLE matters; file separately if wage law violations exist.

Sample employee demand (short form)

Subject: Demand to Remit and Post SSS Contributions Dear [Employer/HR], I am employed as [position] from [start date] to [present/end date]. My payslips show SSS deductions, but my My.SSS account reflects unposted contributions for [months/years]. Kindly remit and post all due SSS contributions (employer and employee share) and any loan amortizations deducted, and provide proof (PRN, official receipts, collection list) within 10 days from receipt. Absent compliance, I will file a complaint with SSS and other authorities to protect my rights. Sincerely, [Name, SS Number, Contact]

10) Payroll & HR compliance checklist (for employers)

Onboarding: employee SS number verified, enrolled with correct MSC.
Payslip shows SSS contribution and (if any) SSS loan deduction lines.
PRN generated every month; remit both shares on or before deadline.
Collection list reconciles with payroll headcount and MSC brackets.
Loan amortizations deducted are remitted in the same cycle.
Archive bank proofs/receipts and electronic acknowledgments; reconcile with My.SSS quarterly.
Respond to SSS notices within the deadline; calendar renewal/expiry of any installment or condonation agreements.
Train HR/payroll staff on RA 11199 duties; assign executive oversight and segregation of duties.

11) Special issues & FAQs

Q: Can employees lose benefits because the employer failed to remit? A: SSS can credit contributions upon proof of employment/wages and grant benefits; the employer then faces collection and penalties. Employees should not delay benefit filings because of employer delinquency.

Q: We paid late but before an SSS audit—still liable? A: Yes. Penalty interest accrues from due date until posting. Paying before audit reduces exposure (no levy/garnishment), but interest remains unless a condonation program applies.

Q: Are officers automatically criminally liable? A: Liability attaches to officers who consented to or tolerated the violation or had control over remittance decisions. Evidence: emails, signatories, approvals, consistent tolerance.

Q: We outsourced payroll—are we safe? A: No. Outsourcing does not transfer statutory responsibility. The employer remains liable for any lapses by a payroll provider.

Q: Bankruptcy/closure? A: Obligations survive and may be preferred claims against assets; officers may still face criminal exposure for willful non-remittance.

12) Litigation & evidence pointers

For SSS/Prosecution: payroll registers, payslips showing deductions, bank statements, unposted contribution ledgers, PRN history, notices/demands, audit worksheets, officer approvals.
For Employers: actual receipts, bank proofs, PRN-linked postings, affidavits explaining mismatches, evidence of timely protests, proof of officer non-involvement or corrective actions.
Witnesses: HR/payroll staff, signatories, auditors, complaining employees.
Damages: In addition to principal and penalties, expect costs and surcharges; courts may order restitution and imprisonment on conviction.

13) Strategy boxes

For employers facing exposure

Stop the bleeding: Resume current timely remittances this month.
Quantify arrears: Internal audit by employee/month; generate PRNs.
Engage SSS early: Explore installment or condonation options.
Document fixes: Board resolution re: compliance; assign accountable officer.
Employee comms: Provide timeline for posting and proof of payment.
Legal posture: Prepare for possible criminal referral; evaluate officer defenses; preserve evidence of corrections.

For employees with gaps

Download contributions matrix and collect payslips.
Demand in writing; set a clear deadline.
File with SSS and track the case/assessment.
Proceed with benefits (SSS will validate and credit, then chase employer).
Consider counsel for parallel criminal/civil remedies.

14) Key takeaways

Non-remittance is unlawful and triggers penalty interest, civil enforcement, and criminal liability—especially where deductions were taken from employees.
Employees’ coverage and benefits are not lost; SSS can credit missing contributions upon proof, then pursue the employer.
Officers who consent to or tolerate violations face personal exposure.
Early self-audit, payment, and cooperation substantially mitigate risk; watch for SSS condonation windows.
Keep clean records, reconcile to My.SSS, and treat SSS remittances as a non-negotiable statutory trust.

This guide is for general information only and is not legal advice. For a specific situation, consult counsel or coordinate directly with SSS to confirm current rates, deadlines, and any active condonation or restructuring programs.