Philippines Payroll System, Processing, and Services
- Configuring pay code taxability per employee, whether they are single or married, names of dependents (parents, brothers, or sisters up to 21 years old, children)
- Maintaining a tax table (withholding tax table uploaded from BIR)
- Determining contributions to SSS, Philhealth and Home Development and Mutual Fund (HDMF).
The Company just needs to provide the time sheet details of the employees, stating the number of man-hours worked, overtime hours, tardiness, and absences.
Preparation of payroll register showing individual salaries due to each employee with the corresponding payroll taxes withheld and deductions for SSS, Philhealth, and HDMF for each period
Preparation of a bank transmittal report stating the name of the employees and their corresponding net pay and the employee’s individual bank account number where the payroll amount shall be credited.
Preparation of remittances to Philippine government agencies
1. Social Security System:
a. Monthly remittance using R5 form
b. Monthly report showing names of employees & individual contributions using R3 file generator
c. SSS certificate of remittances per employee for loan purpose, (i.e., salary loan, housing loan)
2. Philhealth Insurance:
a. Monthly posting of payments using Electronic Premium Reporting System (EPRS)
b. Philhealth certificate of remittances per employee for hospitalization benefit
3. Home Development Mutual Fund (PAG-IBIG Fund):
a. Monthly report
b. HDMF certificate of remittances per employee for loan purposes, salary loan, housing loan
4. Bureau of Internal Revenue:
a. Monthly tax withheld remittance BIR # 1601C
b. Alphabetical listing (Alphalist BIR #1604CF) at year end for resigned and non-resigned employees. This includes total salaries received per employee, total tax due, withheld, and remitted to the Bureau of Internal Revenue.
c. Preparation of BIR form #2316 for individual employees as proof of income tax payment of the individual. Form 2316 contains details in the Alphalist per employee.
List of Requirements for Payroll Processing
- Employee details and a copy of the Contract of Employment for each employee.
- Form 2316 of previous employer
- In case of termination/separation, the Company should inform us at least 30 days before effectivity for our computation of the last pay.
- The Company should inform us of the updates of their employee’s status.