SBWS ADVISORY MISTAKES: How the DoF, SSS, and BIR Have Got It Wrong

There has been a lot of discussion lately on the validity of the Small Business Wage Subsidy refund
requirements, supposedly issued under JMC 001-2020. For many, the guidelines shown in PowerPoint
slides on the various websites of the BIR, DoF, and SSS have been a major cause for confusion. And
rightly so, since the guidelines given in these slides have changed several times over the last few weeks.

The first slide shown gives a clear indication of the requirements or violations that would mean the
SBWS would need to be refunded.

As you can see, in this first issuance, the requirement for employee-beneficiaries to return the subsidy
was that they resigned during the “enhanced community quarantine, modified enhanced community
quarantine, or general community quarantine”.

This meant that, if you resigned before the end of the GCQ in the area where you work, you would be
required to repay the money you got from the SBWS. All SIXTEEN THOUSAND PESOS of it.

Later, another slide was allegedly shown, that changed this policy of returns, removing the “general
community quarantine” part of the previous requirement. However, this alleged slide has yet to surface,
other than in comments given by an alleged employee of the Department of Finance, who was seen to
have posted this comment on a Facebook Group:
In reality, this is in line with the response of the FAQs posted on the DoF website for the SBWS program.
In these FAQs, guidelines were given on who would be liable to return the money, and why.

The policy given, which is NOT taken from any actual JMC or Resolution, gives the same guidelines on
who is required to return the SBWS payments and for what reasons.
As you can see, in this screenshot of the web page, the General Community Quarantine part has been
removed from what was originally issued in the PowerPoint slides of the SSS.

So which one should we believe? If you believe the alleged employee of the DoF, then we are supposed
to believe the “updated” guidelines given on the DoF website. However, I went to this website, and have
read the entire thing, including all of the FAQs given, and it makes very little sense.

The Reality
Further down the page, you get to read the actual memoranda that were issued around the SBWS
program, including all the Task Force resolutions since it began which is very kind of them and saved me
from having to go and find them all.

Insert JMC 001 slideshow

The first is the now infamous “Joint Memorandum Circular No. 001-2020” This was the first issuance by
the combined DoF, BIR, and SSS that laid out the initial guidelines for the SBWS Program. It also included
Item V, or the “ADDITIONAL CONDITIONS FOR THE GRANT”.
According to the DoF employee, this has been updated, and the guidelines have changed. You will note
in this one that it clearly states that employee beneficiaries are not allowed to resign during the “period
of enhanced community quarantine and other forms thereof”, and goes on to provide that non-
compliance will mean the employee will be required to return the subsidy payments.

However, when we go and look at “Joint Memorandum Circular No. 002-2020”, or the AMENDMENT TO
THE DOF-BIR-SSS JOINT MEMORANDUM CIRCULAR NO. 001-2020 "GUIDELINES FOR THE AVAILMENT OF
THE SMALL BUSINESS WAGE SUBSIDY MEASURE", it appears that this alleged amendment” has NOT
actually amended Item V: ADDITIONAL CONDITIONS FOR THE GRANT.

Insert slideshow of JMC 002

In fact, it does not even touch on Item V at all, instead starting with amendments to Item VI. It even
explains its reasoning in the second paragraph, which reads:

“This Addendum is being issued to amend Item VI (General Guidelines) and IX (Roles and
Responsibilities) of JMC No. 001-2020.”

So if this is not the correct amendment document for Item V, what is? Let us look at the other
documents that were present, the SBWS Program Task Force Resolutions, 1, 2, and 4. We have yet to
find out what happened to three…

SBWS PTF Resolution No. 1, dated May 15, 2020, is listed as the “RECOMMENDATION TO EXTEND THE
SBWS PAYOUT PERIODS”. This says nothing about amending anything but the date of the payouts to be
extended until May 31, 2020.

Insert slideshow of PTF 1

SBWS PTF Resolution No. 2, dated May 28, 2020, is designated as the “GUIDELINES ON THE RETURN OF
THE AMOUNT RECEIVED UNDER THE SBWS PROGRAM”. So maybe this means this is the one that has the
amendments to the JMC 001-2020 that we are looking for.

Checking the document, it can be seen clearly that it has all of the requirements and policies for who
should return the SBWS payments, and the reasons for doing so. It even enumerates Item V in the first
few paragraphs, quoting the obligations of both employer and employee, as laid out in JMC 001-2020.

Part A gives you the Coverage and Scope of SBWS, Part B gives the Eligibility Criteria, Part C is the
Additional Conditions, Part D is the “Who Shall Return” part we were looking for, and Parts E and F lay
out the returns procedure, both voluntary and involuntary (Yes, they will be charged with not returning
the money through the DoJ or the OSG, or both, with criminal charges!!!)

Insert slideshow of PTF 2

In the Additional Conditions for the Grant section, it says:

“The small business employer must maintain the employment status of all employee beneficiaries
before the ECQ and other forms thereof and throughout the SBWS period. Employee beneficiaries
cannot resign during the period of ECQ and other forms thereof imposed in Luzon and other parts of the
country.”

And in the WHO SHALL RETURN section it says:

“The return of the subsidy may be made by the employers or by their employee/s, as the case may be:
1. Employers who (i} failed to maintain the employment status of all employee beneficiaries before the
ECQ and other forms thereof and throughout the SBWS, or (ii} made misrepresentation in their
application the fact of payment of wages or other material facts relevant to the eligibility of their
employees, shall return to the government the amount of wage subsidy granted.
2. Employees who resigned during the period of ECQ and other forms thereof imposed in Luzon and
other parts of the country shall return to the government the amount of wage subsidy granted.
The amount of subsidy to be returned will cover the first tranche and/or the second tranche (for DOLE-
CAMP beneficiaries}, as the case may be.”

So here, we should not that the (2) states that the employees who should return the money are those
who resigned “during the period of ECQ and other forms thereof”. So once again, this does not change
the original text of the original JMC 001-2020.

How about SBWS PTF Resolution No. 4? Maybe this has it in.

Insert slideshow of PTF 4

Sadly, this did not have it in either. This resolution was merely the guidance for the SBWS-DOLE
Grievance Mechanism, so we all know how to complain and who to complain to, so that our voices will
be completely ignored, as always.

The strange thing here is that, while everyone is providing the worthless PowerPoint slides that are
available on the BIR, SSS, and DoF websites, not to mention all over Facebook, not one person here has
yet to provide the actual RESOLUTION that includes the updates to the ADDITIONAL CONDITIONS FOR
THE GRANT in JMC 001-2020 that is supposed to remove “and other forms thereof” and insert “and
modified enhanced community quarantine”.

Even those supposedly “working for the DoF” have not been able to provide this document. Only the
slides that are available on the websites have been produced as their proof, which actually appear to be
WRONG. Oh, and their own personal opinions, of course, though those opinions have even less merit
and validity than the incorrect slides.

I am still waiting for a response from the concerned departments regarding the validity of their
PowerPoint portrayal of the guidelines. However, as it is the weekend, I doubt I will hear anything
before Monday. In fact, I doubt I will hear anything at all, since these government departments are
notorious for never answering queries from the people who pay their salaries.

https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/2020%20RMCs/RMC
%20No.%2045-2020%20JMC%20No.%20001-2020.pdf?platform=hootsuite

DOF-SSS-BIR JMC No. 001-2020 or the Guidelines for the Availment of the Business Wage Subsidy
Measure

SBWS Program Task Force Resolution No. 2

ADVISORY: RETURN OF THE SMALL BUSINESS WAGE SUBSIDY

Joint Memorandum Circular (JMC) No. 002-2020 re: amendment to the DOF-BIR-SSS JMC No. 001-2020
(Guidelines for the Availment of the Small Business Wage Subsidy Measure)