In-country Expertise

Payroll Processing and Compliance in Philippines

Navigating the complexities of the Philippine Labor Code can be daunting. Our local expertise ensures 100% compliance with DOLE and BIR regulations, letting you focus on scaling your team.

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Why Payroll Compliance Is a Key Challenge in the Philippines

Stay compliant with the mandatory “government contributions” and tax laws unique to the Philippines.

Statutory contributions (SSS, PhilHealth, Pag-IBIG)

Employers must accurately deduct and remit monthly contributions to the Social Security System (SSS), PhilHealth, and Pag-IBIG (HDMF).

TRAIN law and withholding tax

Under the TRAIN Law, employers are responsible for calculating the correct graduated withholding tax for employees. Ensuring accurate monthly remittances to the Bureau of Internal Revenue (BIR) is critical to avoid heavy surcharges and “compromise” penalties.

13th months’ pay and leave management

The Philippines mandates a 13th-month pay for all rank-and-file employees, paid by December. Additionally, managing Service Incentive Leave (SIL), Maternity/Paternity leave, and Holiday Pay (Regular vs. Special) requires precise tracking.

Annual reconciliation (BIR Form 1604-C)

The Philippine tax year follows the calendar year (Jan 1–Dec 31). At year-end, employers must perform “Annualization” to ensure total taxes withheld match the annual liability, issuing BIR Form 2316 to every employee.

Why Local Knowledge Is Needed for Payroll in the Philippines

End-to-end Philippines payroll, handled with accuracy, timeliness, and compliance – covering statutory contributions, withholding tax, bi-monthly payroll, and BIR filings.

Managing complex compliance regulations

Managing de minimis benefits, differentiating between taxable and non-taxable allowances, and correctly implementing government-mandated rounding regulations are just a few of the intricate requirements associated with Philippine payroll, all of which depend heavily on local knowledge.

Keeping up with changes in regulations

Tax laws and statutory contributions are constantly changing. To ensure that payroll remains accurate and compliant without requiring retroactive adjustments, changes to PhilHealth rates, SSS contribution schedules, and tax regulations must be closely monitored.

Handling operational complexity on a large scale

To Ensure accuracy and Timeliness, Bimonthly Payroll Cycles, Time and Attendance Aggregation, and Statutory Filings Across Various Government Portals Require Organized Procedures and Skilled handling.

Payroll processing that is dependable, effective, and compliant

Our Philippines payroll specialists handle payroll from initiation to final step, guaranteeing accuracy, punctuality, and complete compliance with local rules.

Payroll Compliance and Statutory Management

Statutory Contributions Managed Strictly

We oversee company and employee contributions to SSS, PhilHealth, and Pag-IBIG, guaranteeing accurate calculations, prompt reimbursements, and adherence to the most recent contribution schedules.

Compliance with TRAIN Law and Withholding Tax

Using the proper tax brackets, exemptions, and government-mandated rounding standards, our experts accurately calculates monthly withholding tax in compliance with the TRAIN Law.

Benefits & Allowance Structure of De Minimis

We help you stay compliant while maintaining accurate payroll records by making sure both taxable and non-taxable benefits, including de minimis benefits, are properly classified.

BIR Reporting and Annual Reconciliation

In order to ensure a smooth payroll year close, we take care of year-end payroll needs, such as BIR Form 1604-C, alphalist creation, and employee tax reconciliation.

Payroll Operations Timely and Organized

Bi-monthly payroll processing

We manage the 15th and 30th payroll cycles, making sure that statutory contributions, deductions, and compensation are executed precisely and on schedule each cycle.

Submissions on the Government Portal

Our experts minimizes compliance risk and administrative work by handling filings and uploads across the BIR, SSS, PhilHealth, and Pag-IBIG portals.

Integration of Timesheets and Attendance

To guarantee accurate wage computation, accurate overtime, and clean payroll audits, we incorporate authorized attendance and timesheet data into payroll computations.

Management of Leave and 13th Month Pay

We ensure accuracy and prompt payouts by monitoring and managing statutory leave entitlements and calculating 13th month pay in compliance with Philippine labor standards.

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Reduce your payroll & compliance worries

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