Payroll

The Payroll User Guide provides essential information to manage payroll processes effectively. It covers Payroll Processing, BIR Report Generation, Payroll Adjustments, Annualization, and computation of SSS, PhilHealth, and Pag-IBIG contributions. Additionally, it includes details on Payroll and Tax Rates to ensure compliance with Philippine regulations. This guide is a valuable resource for both new and experienced payroll professionals.

Payroll Processing

Payroll Processing Prerequisites

Payroll processing prerequisites are crucial to ensure accurate and complete payroll calculations. Here are the key prerequisites:

1. Frozen Cutoff Period: To ensure that no other payroll data is modified, the cutoff period must be in a frozen status before processing payroll.
2. Approved Compensation and Benefits: It is essential that an employee's compensation and benefits have been reviewed and approved. This ensures that the correct salary, allowances, deductions, and other benefits are included in the payroll calculation.
3. Approved Timesheets: Employees must submit their timesheets accurately and in a timely manner for the selected cutoff period. Timesheets should then be reviewed and approved to confirm the hours worked, leave taken, overtime, and any other relevant time-related information.

Processing Payroll Individually

To process payroll individually, follow these steps:

1. Before proceeding with payroll processing, ensure that you have checked the prerequisites outlined in the Payroll Processing Prerequisites section for detailed information.
2. Access the left navigation menu and click on Payroll.
3. From the Payroll menu page, select the Payroll Processing card.
4. On the Payroll Processing page, choose the appropriate calendar year from the menu button, then select the desired cutoff period record from the provided list.
5. On the Payroll Processing Summary page, locate the employee for whom you want to process payroll.
6. If needed, you can use the search textbox to quickly find the employee. As you enter search text, the employee list will narrow down accordingly.
7. Once you have located the employee, click on the Process All button to initiate the payroll generation for that employee.
8. Alternatively, you can click on the selected employee to navigate to the Payroll Payslip page.
9. On the Payroll Payslip page, click on the Process button. The initial status of the payslip will be set to Created.
10. If necessary, you can reprocess the payroll by clicking the menu button and then clicking the Reprocess. For example, if an employee's reimbursements were not yet approved during the initial payroll generation, you need to reprocess the payroll after the reimbursements are approved to include them accurately.
11. Once you have reviewed all the payroll details and ensured their correctness, you can set the record to For Review by clicking on the menu button and selecting the For Review option.
12. A notification will be sent to the payroll approver for further processing. Once the status is set to For Review, editing the record will no longer be possible.
13. If you are an authorized Payroll approver and have Approver Rights, you can proceed and approve the Payroll by clicking on the menu button and selecting Approve.

Processing Payroll by Batch

To process payroll by batch, follow these steps:

1. Before proceeding with batch payroll processing, ensure that you have checked the prerequisites outlined in the Payroll Processing Prerequisites section for detailed information.
2. Access the left navigation menu and click on Payroll.
3. From the Payroll menu page, select the Payroll Processing card.
4. On the Payroll Processing page, choose the appropriate calendar year from the menu button, then select the desired cutoff period record from the provided list.
5. On the Payroll Processing Summary page, you can see a list of employees who meet the prerequisites for payroll processing.
6. To initiate batch payroll processing, click on the Process All button. This will process the payroll for all eligible employees.
7. If necessary, you can reprocess the payroll by clicking on the menu button and selecting the Reprocess option. This is useful if any updates or changes have been made since the initial processing.
8. To review the payroll details, you have a couple of options:
   • To view the payslip summary for each employee, click on the PDF icon in the Payslip column. This will download the payslip in PDF format.
   • Alternatively, you can click on each employee's record to navigate to the Payroll Payslip page. Here, you can view the detailed breakdown of the employee's payroll information.
9. Once you have reviewed all the payroll details and ensured their correctness, you can set all eligible records to For Review by clicking on the menu button and selecting the For Review option.
10. A notification will be sent to the payroll approver for further processing. Once the status is set to For Review, editing the record will no longer be possible.
11. If you are an authorized Payroll approver and have Approver Rights, you can proceed and approve the Payroll by clicking on the menu button and selecting Approve.

Processing Payroll for Resigned Employees

To process payroll for resigned employees, follow these steps:

1. Update the employment status of the resigned employee to Resigned. See Updating Employment For Resigned Employees for details.
2. Once the employment status has been successfully updated to Resigned, you can proceed with payroll processing for the resigned employee. Refer to the Processing Payroll Individually for details.

Reviewing Payroll

To review and approve/reject payroll, follow these steps:

1. Access the left navigation menu and click on Payroll.
2. From the Payroll menu page, select the Payroll Processing card.
3. On the Payroll Processing page, select the desired calendar year from the menu button and then choose the cutoff period for which you want to review the payroll.
4. On the Payroll Processing Summary page, you will see a list of employees and their respective payroll details for the selected cutoff period.
5. Review the payroll details for each employee, including their earnings, deductions, and net pay.
6. To review the detailed payslip for an employee, click on the selected employee's record to navigate to the Payroll Payslip page.
7. On the Payroll Payslip page, carefully review the breakdown of earnings, deductions, and net pay for the employee.
8. If you identify any discrepancies or errors in the payroll, you have the option to reject the payroll by clicking the menu button and selecting Reject option. Provide a reason or comment for the rejection if necessary.
9. If the payroll is accurate and ready for approval, click the Approve button to indicate your approval.
10. After approving or rejecting the payroll for the employee, you can navigate back to the Payroll Processing Summary page to review and take action on the payroll for other employees.
11. In the Payroll Processing Summary page, you have the option to perform batch approval or rejection. Click on the menu button and select Approve All or Reject All to apply the same action to all employees' payroll records.

Payroll Control Report

The Payroll Control Report is a comprehensive Excel document that includes all the payroll details for each employee. This report serves as a valuable tool for reconciliation, aiding in the verification and alignment of data with other essential reports such as the BIR 1601-C and BIR 1604-C reports.
To generate and review the Payroll Control Report, follow these steps:

1. Access the left navigation menu and click on Payroll.
2. From the Payroll menu page, select the Payroll Processing card.
3. On the Payroll Processing page, select the desired calendar year from the menu button and then choose the cutoff period for which you want to generate the Payroll Control Report.
4. On the Payroll Processing Summary page, review the payroll details for each employee to ensure accuracy.
5. Click on the Reports Icon (represented by a document icon) on the Payroll Processing Summary page. This will open the Payroll Reports popup window.
6. In the Payroll Reports popup window, select Control Report from the available options.
7. After selecting Control Report, click the Export to XLSX button to generate the report in Excel format.
8. The Payroll Control Report will be downloaded to your device or open in a new browser tab for viewing.
9. Open the Payroll Control Report in Excel to review the detailed payroll components for earnings and deductions for each employee.

Generating BIR 1601-C Report

The BIR 1601-C report, also known as the Monthly Remittance Return of Income Taxes Withheld on Compensation, is a required report by the Bureau of Internal Revenue (BIR) in the Philippines. It serves the purpose of declaring and remitting the income taxes withheld from employee compensation.
To generate the BIR 1601-C report in PDF format, follow these steps:

1. Access the left navigation menu and click on Payroll.
2. From the Payroll menu page, select the Payroll Processing card.
3. On the Payroll Processing page, navigate to the desired calendar year and choose the month-end cutoff period for which you want to generate the BIR 1601-C report.
4. On the Payroll Processing Summary page, review the payroll details to ensure accuracy.
5. Click on the Payroll Reports icon.
6. In the Payroll Popup window, locate the BIR 1601-C report option.
7. Please note that only Approved and Credited payrolls will be included in the report. Ensure that the payroll status is one of these before generating the report.
8. Also, Approved or Adjustments Processed Annualization generated on this cutoff period will be included in the report. Make sure any relevant adjustments have been processed and approved before generating the report.
9. Please note that the BIR 1601-C report is already pre-filled with the necessary information based on the payroll data.
10. Click Export to PDF button.
11. The BIR 1601-C report will be downloaded to your device or open in a new browser tab for viewing.
12. Open the downloaded PDF file to review the report and ensure its accuracy before submission to the BIR.

Generating BIR 1601-C Report for the Last CutOff of the Calendar Year

To ensure that the BIR 1601-C report for the last month of calendar year accurately reflects the annualization of employees who have completed the calendar year, follow these steps:

1. Process and Approve the last payroll of the calendar year.
2. Process and Approve the Annualization for the employees who have completed the calendar year. See Annualization for details
3. Generate the BIR 1601-C report.

Annualization and BIR 1601-C Generation for Resigned Employees

To reflect the Annualization of resigned employees in the BIR 1601-C report, follow these steps:

1. Review the steps in the Processing Payroll for Resigned Employees for details.
2. Process and Approve the last payroll of the resigned employee, including the pro-rated 13th month pay in accordance with the resignation date.
3. Process the Annualization for the resigned employee, incorporating components such as Sick Leave (SL) and Vacation Leave (VL) conversions, as well as Tax Refund if applicable. Refer to Annualization for details.
4. Once the Annualization is approved, generate the BIR 1601-C report for the cutoff period of the last payroll of the resigned employee. This report should accurately reflect the Annualization adjustments made for the resigned employee.

Example Scenario: Employee1 has resigned, with the last working day on October 25th.

1. Process the last payroll for the cutoff period of October 31st, ensuring the inclusion of pro-rated 13th month pay.
2. Process and obtain approval for the Annualization of Employee1, considering SL, VL conversions, and Tax Refund as necessary.
3. Generate the BIR 1601-C report specifically for Employee1, reflecting the Annualization adjustments for the October 31st cutoff period.

Generating BIR 1603-Q Report

The BIR 1603-Q report, also known as the Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits Paid to Employees Other Than Rank and File, is a report is required by the Bureau of Internal Revenue (BIR) and serves the purpose of declaring and summarizing the final income taxes withheld on fringe benefits paid to employees who are not considered rank and file.

To generate the BIR 1603-Q report, follow these steps:

1. Access the left navigation menu and click on Payroll.
2. From the Payroll menu page, select the Payroll Processing card.
3. On the Payroll Processing page, navigate to the desired calendar year and choose the quarterly period corresponding to the reporting period required for the BIR 1603-Q report.
4. On the Payroll Processing Summary page, click on the Payroll Reports icon.
5. In the Payroll Popup window, locate the BIR 1603-Q report option.
6. Please note that only Approved and Credited payrolls will be included in the report. Ensure that the payroll status is one of these before generating the report.
7. Proceed to generate the BIR 1603-Q report by clicking Export to PDF button.
8. Once generated, the report will be available in PDF format for download.
9. Open the downloaded PDF file to review the report and verify its accuracy.

Generating Payroll Deposit Slip

The Payroll Deposit Slip is a financial document that provides a summary of the funds to be deposited into employees' bank accounts. This report serves the purpose of facilitating accurate and efficient payroll fund disbursement.

To generate the Payroll Deposit Slip report, follow these steps:

1. Access the left navigation menu and click on Payroll.
2. From the Payroll menu page, select the Payroll Processing card.
3. On the Payroll Processing page, select the desired Calendar Year from the menu button and choose the CutOff period for which you want to create Payroll Deposit Slip.
4. On the Payroll Processing Summary page, click on the Payroll Reports icon.
5. In the Payroll Popup window, locate the Payroll Deposit Slip option.
6. Please note that only Approved payrolls will be included in the report.
7. Proceed to generate the Payroll Deposit Slip report by clicking the Export to PDF button.
8. Once generated, the report will be available in PDF format for download.
9. Open the downloaded PDF file to review the report and verify its accuracy.

Updating Status To Credited

It is important to update the payroll status to Credited only after confirming that the salary has been successfully credited to the employee's account. This ensures accurate tracking and record-keeping of payroll transactions.

To update the payroll status to Credited, follow these steps:

1. Access the left navigation menu and click on Payroll.
2. From the Payroll menu page, select the Payroll Processing card.
3. On the Payroll Processing page, select the desired Calendar Year from the menu button and choose the CutOff period for which you want to update the payroll status.
4. The Payroll Processing Summary page will be displayed.
5. To update the payroll status for all employees by batch, click on the menu button then select the Credited option. This will update the status of all approved payrolls to Credited.
6. Alternatively, to update the status individually for each employee, click on the employee's record.
7. You will be redirected to the Payroll Payslip page. Click on the menu button and select the Credited option to update the payroll status for that employee.
8. Repeat the process for all employees whose salaries have been credited.
9. Once the payroll status is updated to Credited, employees will be able to view their payslip on the My Payslip page.

Viewing Paylip from My Payslip Page

To view your payslip on the My Payslip page, please follow these steps:

1. Navigate to the left navigation menu and click on Payroll.
2. From the Payroll menu page, select the My Payslip card.
3. On the My Payslip page, click on the menu button and choose the desired Calendar Year from the options.
4. Once you have selected the Calendar Year, a list of cutoff records for that year will be displayed.
5. Locate the cutoff record corresponding to the payslip you want to view.
6. In the Payslip column of the cutoff record, you will find a PDF icon.
7. Click on the PDF icon to download the payslip to your device.
8. Open the downloaded payslip to view the detailed information about your earnings, deductions, and net pay for the selected period.

Note: The payslip will only be available for viewing once the payroll has been credited to your bank account.

Processing Payroll for Periods Prior to SweldoNow Onboarding Date

When performing Annualization, SweldoNow automatically calculates:

• Leave Conversions
• Final Taxable Benefits
• Final Tax Computations
• Final Adjustments

For accurate Annualization, your company’s payroll data must be complete for the entire calendar year. If your company onboarded with SweldoNow after the first cutoff of the current year, you must process payroll data starting from the first cutoff in January of the same year.

Example:

• SweldoNow Onboarding Date: April 1, 2023
• Payroll Data in SweldoNow: April 1, 2023 – December 31, 2023 (cutoffs vary based on company settings)
• Payroll Data (Jan 1, 2023 – March 31, 2023): Must be generated in SweldoNow.

Steps to Generate Payroll Data for Jan 1, 2023 – March 31, 2023:

1. File Attendance and Finance Data:
   File relevant data for all employees if applicable, including:

   • Time Off
   • Overtime
   • Reimbursements
   • Loan Payments
   • Cash Advances
   • Project Charges

   See Attendance Management, Project Charges and Finance Data for details.

2. Approve Attendance and Finance Data:
   Ensure all data for the specified period is approved.

3. Freeze Cutoff Periods:
   Freeze cutoff periods from Jan 1, 2023, to March 31, 2023, for payroll processing. See Freezing Cutoff Period for details.

4. Run Payroll:
   Process payroll for each cutoff within the specified period. See Payroll Processing for details.

5. Review Payroll Data:
   Compare the payroll data (Jan 1, 2023 – March 31, 2023) in SweldoNow with data from your previous payroll system to ensure accuracy. See Reviewing Payroll for details.

6. Approve and Credit Payroll:
   Finalize the payroll for the specified period by approving it and setting it to “Credited.” See Updating Status to Credited for details.

Following these steps ensures a smooth transition and accurate annualization within SweldoNow.

Payroll Adjustments

Payroll Adjustments play a crucial role in payroll processing as they allow for the inclusion of specific changes or corrections that cannot be captured through the regular payroll system. These adjustments can be made for various reasons, such as salary adjustments or project-related changes.

Important: In order for the payroll adjustments to be reflected in the Payroll Processing, the payroll adjustment record must go through the approval process. Once the adjustment is Approved, the payroll needs to be reprocessed to incorporate the changes.

Creating Payroll Adjustments

To create payroll adjustments, follow these steps:

1. Access the left navigation menu and click on Payroll.
2. From the Payroll menu page, select the Adjustments card.
3. On the Payroll Adjustments page, select the desired Calendar Year from the menu button, and then click the cutoff period from the available list.
4. On the Payroll Adjustments page for the selected cutoff period, click on the Add (+) button.
5. In the Add Payroll Adjustments popup window, enter the following details:
   • Employee: Select the employee from the list.
   • Journal Type: Select whether the adjustment is a Credit or a Debit to the employee's payroll.
     • Credit: If this option is selected, indicate whether the adjustment should be added to the employee's taxable income by toggling the corresponding switch button.
     • Debit: If this option is selected, indicate whether the adjustment should be deducted from the employee's taxable income by toggling the corresponding switch button.
   • Adjustment Type: Select the type of adjustment from the available options.
   • Amount: Enter the amount of the adjustment.
   • Commentss: Add any comments if necessary.
6. Click the Add button to create the record.
7. You will be redirected to the Payroll Adjustments Details page, where the initial status will be set to Created.
8. While the status is Created, you can still edit or delete the record if needed.
9. To change the status to For Review, click on the menu button and select the For Review option. This action will trigger a notification to be sent to the Approver.
10. If you are an authorized Payroll Adjustments approver and have Approver Rights, you can proceed and approve the request by clicking on the menu button and selecting Approve.

Reviewing Payroll Adjustments

To review payroll adjustments, follow these steps:

Note: Only users with the appropriate approver rights will be able to perform the approval or rejection actions on payroll adjustments.

1. Access the left navigation menu and click on Payroll.
2. From the Payroll menu page, select the Adjustments card.
3. On the Payroll Adjustments page, select the desired calendar period from the menu button, and then choose the cutoff period for which you want to review the payroll adjustments.
4. Locate the specific payroll adjustment record that requires your attention.
5. On the Payroll Adjustments Details page, click on the menu button for the respective record, and select either Approve or Reject based on your assessment of the adjustment.

Annualization

Annualization processing automates the computation of Leaves Conversion, Final Taxable Benefits, Final Tax Computation, and Final Adjustments. It also enables faster generation of BIR 2316 and BIR 1604-C Summary and Alphalist reports. This ensures accuracy, compliance with tax regulations, and provides valuable data-driven insights for financial planning and analysis.

Annualization Prerequisites

1. Annualization Calendar Period status must be Open.
2. Annualization Record Status must be Approved.
3. Review Generating BIR 1601-C report for the last cutoff of the calendar year.
4. All payroll records for the employee must be Approved. If the employee has resigned, all payrolls up to and including the last cutoff period where the resignation date falls must be Approved. Refer to Annualization and BIR 1601-C Generation for Resigned Employees for further details about resigned employees.
5. If your company onboarded with SweldoNow after the first cutoff of the current year, you must process payroll data starting from the first cutoff in January of the same year. See Processing Payroll for Periods Prior to SweldoNow Onboarding Date for details.

Annualization Processing

To process annualization, follow these steps:

1. Review the annualization prerequisites to ensure all requirements are met.
2. Access the left navigation menu then click Payroll.
3. On Payroll menu page, select the Annualization card.
4. On the Payroll Annualization page, select the calendar year from the list of available records.
5. On the Payroll Annualization (Year) page, locate and select the desired employee from the list. You can utilize the search functionality to narrow down the list. Click on the selected employee to view their Payroll Annualization (Year) details.
6. Review the Payroll History to verify that all payroll records for the employee have been approved.
7. Click on the menu button and select Generate to initiate the annualization process. Review the generated details to ensure accuracy. If needed, you can regenerate the annualization by clicking on the menu button and selecting Regenerate.
8. Review all the annualization details found in sections such as Leaves Conversion, Final Taxable Benefits, Final Tax Computation, and Final Adjustments. These details can be downloaded in PDF format by clicking on the Print Reports icon. In the Annualization Reports popup window, select the Annualization report and click the Export to PDF button.
9. To set the annualization for review, click on the menu button and select the For Review option.

Reviewing Annualization

To review the annualization for a selected employee, follow these steps:

1. Review the annualization prerequisites to ensure all requirements are met.
2. Access the left navigation menu then click Payroll.
3. On Payroll menu page, select the Annualization card.
4. On the Payroll Annualization page, choose the appropriate calendar year from the list of records.
5. Locate and select the desired employee from the list. You can use the search functionality to narrow down the options.
6. Click on the selected employee to view the Payroll Annualization (Year) for that employee.
7. Review the annualization details, including Leaves Conversion, Final Taxable Benefits, Final Tax Computation, and Final Adjustments sections.
8. To take action on the annualization, click on the menu button and choose either the Approve or Reject option.

BIR Form 2316

The BIR Form 2316 is a report required by the Bureau of Internal Revenue (BIR) in the Philippines. It is an annual Certificate of Compensation Payment/Tax Withheld that summarizes an employee's compensation and taxes withheld by the employer throughout the calendar year. This report is used by employees when filing their annual income tax return. The BIR Form 2316 provides important information such as total earnings, tax withheld, and deductions, which are essential for accurate tax reporting and compliance.

To generate the BIR Form 2316, follow these steps:

1. Access the left navigation menu then click Payroll.
2. On Payroll menu page, select the Annualization card.
3. On the Payroll Annualization page, choose the appropriate calendar year from the list of records.
4. Locate and select the desired employee from the list. You can use the search functionality to narrow down the options.
5. Click on the selected employee to view the Payroll Annualization (Year) for that employee.
6. On the Payroll Annualization (Year) page, locate the Print Reports icon beside the menu button and click on it.
7. In the Annualization Reports popup window, select BIR Form 2316 from the available report options.
8. Click the Export to PDF button to generate the BIR Form 2316 report in PDF format.
9. Save the generated report to your device or print it for further processing.

Note: Once the Annualization status is updated to Adjustments Processed, the BIR 2316 report will be made available on the My Payslip page. This enables every employee to easily download and view their individual BIR 2316 report. It is important for employees to regularly check the My Payslip page to access and keep a copy of their BIR 2316 report for tax-related purposes.

Generating BIR 1604-C Summary

BIR Form 1604-C is a report required by the Bureau of Internal Revenue (BIR) in the Philippines. It is the Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes. The purpose of this report is to provide a summary of the income taxes withheld by employers on compensation payments made to employees throughout the calendar year.

To generate BIR Form 1604-C, follow these steps:

1. Access the left navigation menu then click Payroll.
2. On the Payroll menu page, select the Annualization card.
3. On the Payroll Annualization page, choose the appropriate calendar year from the list of records.
4. On the Payroll Annualization (Year) page, click on the Print Reports icon.
5. In the Annualization Reports popup window, select BIR Form No. 1604-C (summary) from the list of options.
6. Click the Export to PDF button to generate the report.

Note: Only annualizations that are in the Approved or Adjustments Processed status will be included in the BIR Form 1604-C report.

Generating BIR Form No. 1604-C (Schedule 1 - Alphalist of Employees)

BIR Form 1604-C Schedule 1 - Alphalist of Employees is a report required by the Bureau of Internal Revenue (BIR) in the Philippines. It provides a detailed list of employees and their corresponding information, such as their names, Tax Identification Numbers (TINs), compensation details, and taxes withheld. This report serves as a comprehensive record of employee information for tax compliance purposes.

To generate BIR Form 1604-C Alphalist Schedule 1, follow these steps:

1. Access the left navigation menu then click Payroll.
2. On the Payroll menu page, select the Annualization card.
3. On the Payroll Annualization page, choose the appropriate calendar year from the list of records.
4. On the Payroll Annualization (Year) page, click on the Print Reports icon.
5. In the Annualization Reports popup window, select BIR Form No. 1604-C (Schedule 1- Alphalist of Employees) from the list of options.
6. Click the Export to PDF button to generate the report.

Note: Only annualizations that are in the Approved or Adjustments Processed status will be included in the BIR Form 1604-C Alphalist Schedule 1 report.

BIR Form No. 1604-C (Schedule 2 – Alphalist of Minimum Wage Earners)

BIR Form 1604-C Schedule 2 - Alphalist of Minimum Wage Earners is a report required by the Bureau of Internal Revenue (BIR) in the Philippines. This report specifically lists employees who are considered minimum wage earners and provides their relevant details, such as names, Tax Identification Numbers (TINs), compensation information, and taxes withheld.

To generate BIR Form 1604-C Schedule 2 - Alphalist of Minimum Wage Earners, follow these steps:

1. Access the left navigation menu then click Payroll.
2. On the Payroll menu page, select the Annualization card.
3. On the Payroll Annualization page, choose the appropriate calendar year from the list of records.
4. On the Payroll Annualization (Year) page, click on the Print Reports icon.
5. In the Annualization Reports popup window, select BIR Form No. 1604-C (Schedule 2 - Alphalist of Minimum Wage Earners) from the list of options.
6. Click the Export to PDF button to generate the report.

Note: Only annualizations that are in the Approved or Adjustments Processed status will be included in the BIR Form 1604-C Schedule 2 report.

Processing Annualization Final Adjustments Before the next Calendar Period

The purpose of this activity is to process the final adjustments for annualization before the start of the next calendar period. It ensures that any positive final adjustments, such as Sick Leave (SL) and Vacation Leave (VL) conversions, additional tax, or tax refunds, are properly accounted for and credited to employees.

Activities:

1. Note that this activity is applicable only for employees with a positive final adjustment amount. This is determined by the formula:

SL conversion (if any) + VL conversion (if any) - additional tax (if any) + tax refund (if any) > 0

2. For employees with negative final adjustments, the adjustments will be processed automatically in the succeeding payroll of the next calendar year. This scenario is rare and typically occurs when an employee's income tax has been under-withheld.
3. Ensure that all annualizations have already been approved. Review the status of each annualization to confirm their approval.
4. Generate the Annualization Adjustments Deposit Slip from the Annualization (Year) page. This deposit slip will contain the details of the final adjustments for each employee.
5. Once the annualization adjustments have been successfully credited to employees' bank accounts, update the status of the annualization to Adjustments Processed. This ensures that the adjustments have been properly accounted for and completed before the next Calendar Period.

Processing Annualization Final Adjustments in the First Cutoff Period of the New Calendar Year

If company policy requires that annualization final adjustments be processed in the following calendar year, please note the following:

1. During payroll processing for the first cutoff period of the New Calendar Year, all Approved Annualization Final Adjustments from the Previous Calendar Year will be included in the payroll calculations.
2. Ensure that only annualizations with an Approved status are processed.
3. The adjustments will be accurately reflected in the payroll, accounting for employees' earnings, deductions, and net pay for the respective period.

Generating Annualization Adjustments Deposit Slip

To generate the Adjustments Deposit Slip, follow these steps:

1. Access the left navigation menu then click Payroll.
2. From the Payroll menu page, select the Annualization card.
3. On the Payroll Annualization page, choose the appropriate calendar year from the list of records.
4. On the Payroll Annualization (Year) page, find the Print Reports icon located near the menu button and click on it.
5. In the Annualization Reports popup window, select Adjustments Deposit from the available report options. Note that only Approved annualizations with positive Final Adjustments will be included in the report.
6. Click the Export to PDF button to generate the report in PDF format.

SSS Contributions

SSS contributions are the mandatory contributions made by both employees and employers to the Philippine Social Security System (SSS). These contributions serve as social insurance to provide financial protection and benefits for covered employees and their beneficiaries in the event of sickness, disability, retirement, and other contingencies.

Monthly Processing of SSS Contributions

To process SSS contributions, follow these steps:

Note: Before processing the SSS contributions for the selected month, ensure that the payroll of the selected month has been completed and all payroll records are in either Approved or Credited status. This ensures that the SSS contributions are accurately calculated based on the finalized payroll data.

1. Click on Payroll in the left navigation menu.
2. Select the SSS Contributions card.
3. On the SSS Contributions page, choose the appropriate calendar year from the menu button, then select the desired calendar month record from the list.
4. You will be directed to the SSS Contributions Details page, where you can find the SSS contributions listed per employee. The details include Employee ID, SSS Number, Employee Name, Total Employee Contribution, and Total Employer Contribution.
5. If needed, you can download the report in Excel format by clicking on the Export to Excel icon.
6. Once the SSS contributions have been reviewed, proceed with the remittance of the contributions using the selected payment options.
7. After remitting the SSS contributions, update the status of the selected calendar month to Paid by clicking on the menu button and selecting the Paid option.

Pagibig Contributions

Pag-IBIG (or the Home Development Mutual Fund) is a government-mandated savings and housing fund program in the Philippines. It aims to provide socialized housing, short-term loans, and access to savings for its members. The purpose of Pag-IBIG contributions is to accumulate savings that can be used for various purposes such as housing loans, multi-purpose loans, and retirement benefits. These contributions help individuals secure housing and financial stability, promoting social welfare and economic development in the country.

Monthly Processing of Pagibig Contributions

To process Pag-IBIG contributions, follow similar steps as processing SSS contributions:

Note: Ensure that the payroll of the selected month has been completed and all payroll records are in either Approved or Credited status before processing the Pag-IBIG contributions. This ensures accurate calculation of the contributions based on the finalized payroll data.

1. Access the Payroll section from the left navigation menu.
2. Click on the Pag-IBIG Contributions card.
3. On the Pag-IBIG Contributions page, select the calendar year from the menu button, then choose the desired calendar month record from the list.
4. Review the Pag-IBIG contributions details listed per employee on the Pag-IBIG Contributions Details page. The details may include Employee ID, Pag-IBIG Number, Employee Name, Total Employee Contribution, and Total Employer Contribution.
5. You also have the option to export the report in Excel format.
6. Once the Pag-IBIG contributions have been reviewed, proceed with the remittance of the contributions using the selected payment options.
7. After remitting the Pag-IBIG contributions, update the status of the selected calendar month to Paid by clicking on the menu button and selecting the Paid option.

Philhealth Contributions

PhilHealth, or the Philippine Health Insurance Corporation, is a government agency in the Philippines that provides social health insurance coverage to its members. Its purpose is to ensure that individuals and their dependents have access to affordable and quality healthcare services. PhilHealth contributions are mandatory for employed individuals and are used to fund the health insurance benefits provided by the agency.

Monthly Processing of Philhealth Contributions

To process PhilHealth contributions, follow these steps:

Note: Before processing the PhilHealth contributions for the selected month, ensure that the payroll for that month has been completed, and all payroll records are in the approved or credited status.

1. Access the Payroll page from the left navigation menu.
2. Click on the PhilHealth Contributions card.
3. On the PhilHealth Contributions page, select the calendar year from the menu button and choose the desired calendar month record.
4. Review the PhilHealth contributions details listed per employee on the PhilHealth Contributions Details page. This includes information such as Employee ID, PhilHealth Number, Employee Name, Total Employee Contribution, and Total Employer Contribution.
5. If needed, you can download the report in Excel format by clicking on the Export to Excel icon.
6. Once the PhilHealth contributions have been reviewed, proceed with the remittance through the selected payment options. Ensure compliance with the necessary remittance procedures and deadlines.
7. After the remittance has been made, update the status of the selected calendar month to Paid by clicking on the menu button and selecting the Paid option.

Reference Tables

Payroll Reference Tables are essential tools that streamline the payroll process, promote accuracy, ensure compliance, and save time for payroll professionals. They provide a reliable reference for consistent and precise payroll calculations based on the latest regulations and rates.

Payroll Reference Tables

To view the Payroll Reference Tables, follow these steps:

1. Click on the Payroll option from the left navigation menu.
2. Select the Reference Tables card.
3. On the Payroll Reference Tables page, you will find various tables that are important for payroll computation, including the Income Tax Table, SSS Table, Pagibig Table, Philhealth Table, Overtime Rates Table, and Minimum Wage Table.
4. Each table contains the necessary information and rates used in the calculation of payroll components.
5. It is crucial to refer to these tables to ensure accurate and compliant payroll computations.
6. The reference tables are regularly updated with any new updates or amendments from government agencies. These updates will be automatically loaded and reflected on the system.
7. To access a specific table, simply click on the corresponding section within the Payroll Reference Tables page.