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Steps in Reporting New Employees to SSS, Philhealth, Pag-Ibig, and BIR
As an employer or a registered business operating in the Philippines, it is mandatory for you to register your every new employee or update your existing employees’ data with the Bureau of Internal Revenue (BIR), Social Security System (SSS) Philippine Health Insurance Corporation (PHIC) or Philhealth , and Home Development Mutual Fund (HDMF) also known as Pag-ibig. The employer is liable should the company fail to remit and/or update the employee’s status with the government agencies mentioned in this article.
Bureau of Internal Revenue (BIR) Employee Registration
BIR Registration for New Employee Without a Tax Identification Number (TIN)
You shall require your new employee to file a BIR Form 1902 to the Revenue District Office (RDO) where your principal place of business is registered.
BIR Registration for New Employee with TIN No.
If your new employee has his/her TIN No and the previous employer is located in the same RDO as your company, the new employee shall submit BIR Form 2305 to the same RDO to update the BIR of his/her new employment. If his/her previous employer is located in a different RDO, the employee shall submit a BIR Form 1905 in the RDO where his/her previous employer is registered.
Social Security System (SSS) Employee Registration
SSS Registration for New Employees
Republic Act No. 8282 states that all employees hired by a private company are required to be members of the Social Security System (SSS). The member’s monthly contributions are deducted based on their actual monthly salaries, 30% of which is deducted to the employee and 70% is subsidized by the employer. These contributions are then availed through monetary assistance from SSS when the member is in need. Some situations include sickness/hospitalization, maternity, retirement, death or any other incident that will result in a member’s inability to produce his/her own income or any other financial difficulty.
For new employees without any SSS No, employers shall require their new employee to register in the SSS office where the company is registered. Once processed, the employee must provide the employer his/her SSS No.
Employees who are existing SSS members must submit their SSS No. to their employers.
Employers are also required to fill up the SSS Form R1A which contains the list of new employees with their respective SSS numbers. The SSS Form R1A shall be submitted to the SSS office where your company is registered. Online submissions are available for the SSS Form R1A.
Philippine Health Insurance Corporation (PHIC) Employee Registration
As stated in Republic Act 7875, all employees are mandated to be members and provide monthly contributions to the Philippine Health Insurance Corporation (PHIC), a medical insurance company in the Philippines. PHIC provides its members with health and hospitalization subsidies should they or their dependent/s be hospitalized. The member’s monthly contributions are deducted based on the member’s actual monthly salary.
New employees must fill up and sign a PHIC Form PMRF regardless if they are existing members of PHIC. These forms are then submitted by the employer to the PHIC office where the company is registered. Employers are also required to submit a PHIC Form ER2. This form contains the list of new employees and is submitted to the PHIC office where the company is registered.
Home Development Mutual Fund (HDMF) Employee Registration
Republic Act 7835 mandates employers to contribute to HDMF agency on behalf of their employees. The Home Development Mutual Fund (HDMF) also known as Pag-ibig, is a government agency providing housing and land acquisition loans to its members with the lowest interest rate. These loans are payable up to 30 years.
New employees are required to register as a member of HDMF online and must be registered as an SSS member first before registering with HDMF. Employers can submit the list of their new employees by filling up the HDMF Form MCRF and marking the new employees as NH (Newly Hire) when filing the monthly HDMF contributions or through the Pag-ibig online web portal.
All forms mentioned in this article are found in the government agencies’ respective websites.