When setting up a business in the Philippines, one of the things that should be in your business startup checklist is payroll processing.
Payroll processing is one of the most important tasks a business owner must know by heart and accomplish accurately and on time. The employer determines the net pay of the employees after computing and then withholding the necessary taxes, government contributions, loan repayments, and other authorized salary deductibles from their gross pay.
When done manually, payroll processing can be complicated and time consuming.
However, there are ways to make the operation less stressful for small business owners. Creating a payroll checklist is one of them, which should include the following:
Make sure your list of employees and their personal details are always updated to avoid potential problems such as misclassifying a full-time employee as an independent contractor or freelancer. This error can result in denying employees company benefits such as overtime pay.
In addition, keep track of your headcount. Track new hires, resignations, and terminations.
Make sure you’re on top of:
To ensure that you are getting accurate information, ask other departments for their input, and remind employees to inform you of changes in their personal information, especially if it impacts the deductions in their pay (enrolling a new child as a dependent, for example).
Make it a habit to regularly review the information logged in your employees’ time cards and timesheets. Doing this ensures:
Having complete and verifiable records on hand is important in case an employee contests their salary for a certain pay period.
After the employees’ work hours have been verified, you can move on to the computation of their gross pay, which may include:
Once you have completed calculating your employees’ overall pay, compute their taxes and other deductions, such as company loans, in order to determine their net pay.
In the Philippines, deductions include the mandated monthly contributions to the following government agencies and corporations:
After you finish computing your employees’ salaries, subject everything to a thorough review before printing out the payslips and processing their salary.
Moreover, because salaries often make up the largest item in your budget, make sure that everyone who needs payroll information receives regular updates. This includes your department heads, managers, and other key stakeholders.
When payday rolls around, make sure each employee receives or has access to their payslip showing their:
Depending on company policy, payslips can also include the employee’s year-to-date compensation and deductions. In addition, payslips can also include other details such as the employee’s TIN, SSS, PhilHealth, and PAG-IBIG numbers.
Payslips can be sent to the employee’s email address, or accessed via specific web portals.
It’s no secret that payroll processing can be complicated and time-consuming and that even the smallest of slip-ups can severely mess things up for you, your employee, and your business.
To make life easier for you and to streamline your operations, ask FilePino to your help you with payroll processing.
Outsourcing your payroll -related tasks to FilePino not only saves you from unnecessary stress and headaches, it also allows you to concentrate on other important tasks related to running your business.
Moreover, the accurate and timely processing of your company’s payroll avoids complaints and costly government penalties.
Composed of corporate experts such as lawyers, certified accountants, and business leaders, the FilePino Team can help you with tasks related to your business – including taking care of your bookkeeping and payroll needs.
FilePino offers a full array of cost-effective services guaranteed to help make establishing and managing new businesses in the Philippines easy for everyone.
Contact FilePino at +63.917.892.2337, [email protected], or drop your inquiries here to get started.