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.

Our Updated Payroll Computation

• Maintaining a tax table (withholding tax table uploaded from BIR)
• Determining contributions to SSS, Philhealth, and Home Development and Mutual Fund (HDMF)

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

5 Steps of Payroll Processing Upon Receipt of The Requirements:

1. We gather the monthly timesheets and other necessary documents that you provide
2. We conduct computations on the gross salary, attendance, withholding income tax, and government contributions due to each employee
3. We send payroll documents to your office for review and approval
4. Upon your approval, we finalize the payroll documents, generate your bank’s payroll files, and send your employees their individual payslips through e-mail
5. We produce the necessary government reports and send them to appropriate agencies on your behalf    

Steps in Reporting New Employees to SSS, Philhealth, Pag-Ibig, and BIR