Most companies require 8 hours per day from Monday to Friday on a monthly basis and Monday to Saturday for a daily rate. The minimum wage in the Philippines varies in different regions and the hourly rate computation must be based on the DOLE-provided hourly rate table.
Source of payroll process is coming from the timekeeping processing called as work hour distribution that confirmed by employee and approved by head department prior to payroll processing. HR Payroll System automatically computes salary based on their daily rate, allowance, or other benefits assigned in payroll information in employee table. Mandatory contributions like SSS, Philhealth, HDMF, tax deduction, loan deduction, adjustment pay, other income, and add back pay are automatically computed by the system. Employees with a minimum wage are tax-exempt under the TRAIN Law.
Daily Rate = 950.00
Gross Income = 20,613.34
Total Contribution = 2,093
Taxable Income = 18,520.34 -> (Gross Income - Total Contribution)
The taxable income 18,520.34 from Train Law Semi-Monthly Tax Table is under the salary bracket of 16,667 which the tax due is 1,250.00 + 25% over)
Tax = 18,520.34 - 16,667 = 1,853.34
Over = 1,853.34 * .25 = 463.34
= 1,250.00 + 463.34
Tax Due = 1,713.34
Net Pay = Gross Income - Total Deduction
= 20,613.34 - (2,093.00 + 1,713.34)
Take Home Pay: 16,807.00
Gross Income = 31,712.83
Total Contribution = 2,686.54Taxable Income = 29,026.29 -> (Gross Income - Total Contribution)
The taxable income 29,026.29 from Train Law Semi-Monthly Tax Table is under the salary bracket of 16,667 which the tax due is 1,250.00 + 25% over)
Tax = 29,026.29 - 16,667 = 12,359.29
= 12,359.29 * .25 = 3,089.82
= 1,250.00 + 3,089.82
Tax Due = 4,339.82
Net Pay = Gross Income - Total Deduction
= 31,712.83 - (2,686.54 + 4,339.82)
Take Home Pay: 24,686.47
The payroll process involves calculating and disbursing employee salaries, wages, and benefits on a regular basis. Stay updated with employment laws, tax regulations, and other relevant compliance requirements to ensure accurate payroll processing and avoid penalties or legal issues.
Implementing an effective timekeeping process helps ensure accurate payroll calculations, compliance with labor laws, and fair compensation for employees' work hours. It also provides valuable data for analyzing workforce productivity and resource allocation.
Recruitment and training should be ongoing processes to attract and retain top talent and ensure the team is equipped with the necessary skills and knowledge to meet organizational goals.
Human resources (HR) is a crucial department within an organization that focuses on managing and developing the people who work for the company. The HR department is responsible for various functions related to employee recruitment, hiring, training, performance management, benefits administration, and employee relations.
Payroll processing is the administrative task of calculating and distributing employee salaries and benefits. It involves several steps, including collecting and verifying employee time and attendance data, calculating wages and deductions, and generating paychecks or direct deposits.
Employers must keep accurate records of non-exempt employees work hours to comply state and local laws. This straightforward process can become complex when employees start work early or leave late, travel for business, participate in company trainings, and use mobile devices to remain connected to work after-hours.
Overall, implementing a reliable timekeeping tool can significantly improve efficiency and accuracy in employee time tracking. It streamlines processes, reduces errors, ensures compliance, and provides valuable data for decision-making.
By following these steps, you can automate loan deductions using payroll setup, saving time and ensuring accuracy in loan repayments for your employees.
By embracing technology and digitizing HR processes, organizations can streamline operations, improve employee experience, and enable HR professionals to focus on strategic initiatives that drive business success.
Specific setup and configuration of your timekeeping and attendance system will depend on the unique needs and requirements of your organization. It's important to adapt these steps to fit your specific circumstances and consult with HR professionals or software providers for guidance.
Contact Us, those organizations need to modernize HR Management Tools and a paperless solution to speed-up the entire process of human resources and the automation of timekeeping to payroll processing that every process module has approvals.