Monday, February 4, 2013

Batas Kasambahay: SSS

I am not against the passage of Batas Kasambahay (Republic Act 10361). In fact, I support the intention of the law to provide benefits for household helpers.  I just feel that the implementation of the law puts so much burden on the employers (mostly the housewives, who are the primary house managers).

This is the first of a series that I plan to write in order to help fellow housewives and house managers like myself, who must take  steps to comply with the requirements of R.A. 10361.

One of the things that the law mandates is that househelpers should be registered and enrolled in the Social Security System (SSS) as employees of private households.  


You are indeed fortunate if your current househelp (this term includes your "yaya," cook, laundry woman, family driver to name a few) has an existing SSS number. If she does not have one, then, here are the steps to enroll as member of the SSS:

1. Locate the nearest SSS branch.
2. Ask your helper to bring the original and photocopy of her birth certificate or baptismal certificate or passport to the SSS, which will serve as her identification to get the SSS number.
3. Your helper should fill out Form E1 in duplicate (white and pink) and submit it to the SSS together with the primary documents just mentioned.  You can download the E1 form.
4. On the same day, she will receive the pink copy of the E1 form which will show the assigned SSS number.

Now, you can start paying her contributions at any SSS branch office or accredited banks using the R5 Form.  You can choose to pay it monthly or quarterly.  The schedule and contribution table can be found in the SSS website.

After payment, you would need to report to SSS your household contribution list.  I find that it is much easier to make the reporting through the SSS website.  In this case, you would need to register using your individual SSS number, from there you will be asked to download a file to generate the list.

However, the SSS has issued a new guideline where household employers are now given an employer number. In this new guideline, as employers, we need to be assigned a new SSS number. See Circular No. 2013-001.  You may also have to visit the nearest SSS branch to inquire about this.


Update 21 September 2014: Here's click on this update to show you how a household employer can register with the SSS and implement the Kasambahay Law. 





4 comments:

  1. Do corporations benefit (tax-wise) from their payment of an employee's SSS, Philheath, retirement, and other benefits? Stated differently, are these considered necessary expenses that a corporation can use to deduct from corporate income before it is taxed? If the answer is yes, can the "kasambahay employer" do the same in relation to his income before it's taxed? Sauce for the goose... Would appreciate your insights!

    Joey

    ReplyDelete
    Replies
    1. Thanks, Joey, for visiting. I haven't had time to update my blog recently. I partly agree with your comment. This I am not sure but I know that while corporations can deduct salaries as part of their cost for services/sales, the payment of mandatory benefits may not be deductible. Am not a tax lawyer so I will have to get back to you on that.

      Delete
  2. hi, do you have a blog post on philhealth registration and contribution procedures for a household employer and kasambahay as well? thanks for this post. really helped a lot!

    ReplyDelete
    Replies
    1. Thanks for visiting. :-) Haven't had the time to update my blog but here are the steps for registering with philhealth:

      Fill up your employer data record (ER1) and report of employee members (ER2).
      Househelp to fill up the Philhealth membership registration form for enrollment, or to update member details if her former employer provided her with this benefit.
      Submit these documents to the Philhealth branch nearest your house.
      Pay Philhealth contributions. Total of P1,800 per year if the salary is less than P5,000 per month.

      Hope this was of help.

      Delete

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