Payroll Processing in the Philippines
K&C offers Outsourced Payroll Processing Services for registered companies in the Philippines. Our Certified Payroll Professionals (CPPs) make use of a cloud-based payroll software to accurately run payroll while cross-checking spreadsheets manually to maintain correctness. With our advanced payroll solution, salary computations are completely automated and computation tables for tax deductions and government contributions are constantly updated to comply with mandatory requirements from the Philippine government.
We uphold strict compliance with existing laws and regulations in the Philippines and are updated with the latest amendments to avoid discrepancies in our payroll processes. We made significant updates to our previous payroll computation following the implementation of the new tax reform law (known as the TRAIN Law) under the Duterte administration to guarantee accuracy and reliability in our services.
Steps of Payroll Processing
- GATHER AND COLLATE
We gather the monthly timesheets and other payroll instructions - ANALYZE AND PROCESS
We conduct computations on the gross salary, withholding income tax, and government contributions due to each employee - REVIEW AND FINALIZE
All payroll reports undergo 3-tier internal reviews before they are sent to clients for review and approval; once approved, final reports are generated - REPORT AND FULFILL
We submit final reports to appropriate offices, execute payments, and comply with necessary policies
Our List of Requirements for Processing Your Payroll
- Employee details and a copy of the Contract of Employment for each employee
- BIR Form 2316 from previous employer
- Monthly timesheet details, including the number of hours worked, overtime hours, tardiness, and absences
- 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
- Bank transmittal report reflecting the name of the employees, their corresponding net pay, and individual bank account number where the payroll amount shall be credited
Steps in Reporting New Employees to SSS, Philhealth, Pag-Ibig, and BIR
Payroll Processing Services in the Philippines FAQs
What are the steps of payroll processing in the Philippines?
Payroll processing in the Philippines involves four steps:
- Client sends montly timesheets and other requirements
- Payroll provider computes gross salary, withholding tax, and government contributions of each employee
- Payroll reports are sent to client for review
- Payroll provider submits final payroll report to appropriate government offices.
What are the requirements for payroll processing in the Philippines?
The requirements for payroll processing in the Philippines are as follows:
- Employee details (including BIR Form 2316 from previous employer)
- Monthly timesheet details (including number of hours worked, overtime, tardiness, and absences)
- Payroll register showing individual salaries, taxes withheld, and deductions for government contributions
- Bank transmittal report reflecting name of employer, net pay, and bank account number.
How long does payroll processing in the Philippines usually take?
After the client submits all required documents for computation, payroll processing in the Philippines usually takes 3-6 business days.
Outsource your payroll processes to us
We provide an integrated suite of payroll services, from salary computation and payslip generation to remittance of government contributions.