How can you handle Payroll easily? A question that most new businesses and even established businesses are asking time and again. Payroll processing is not an easy task. It involves setting up an accurate and timely payroll system that will compute employee’s taxes and establish routine pay periods.
We would like to share with you some of the techniques on how to handle your payroll easily. We hope that these tips would help you in making it simple and lessening your headaches as well.
Understand the Philippine payroll process
The first step is to get yourself well-acquainted with the processes of Philippine payroll system. These processes include the basic concepts and legal requirements of employee payroll. “Payroll” simply means, the total amount of money paid by an employer to his or her employees on a recurring basis.
Computation involves determining the proper deductions of benefits as well as proper withholding taxes. In conducting payroll you must also withhold a portion of their compensation to meet applicable income tax, social security, PhilHealth, and other requirements. This is very critical since any improper computation might lead to penalties and worst legal charges.
Implement a payroll system that works for you
Determine what system can let you handle payroll easily. There are various ways to handle your payroll requirements. You can opt to do a manual payroll system which is a bit time-consuming process but is cost-effective. Manual payroll system however could also expose your business to a lot of inaccuracies and mistakes.
Besides manual payroll processing you can invest in a commercial Philippine payroll software. This is a reliable and commonly preferred method. With the use of a computerized payroll system you can be assured that calculations are more accurate and proper payroll is generated for each employee.
It is also advisable to hire an accountant for your business. An accountant can provide professional assistance and advice to you. This is however not required since most accountants require retainers fee which is a bit high.
In any case, choose the Philippine payroll method which will let you handle payroll easily. It should be within your budget, according to your schedule, provides you with accurate computation and can be easily implemented in your business.
Coordinate with your employees well
A healthy coordination with your employees is key in handling payroll easily. Know what you need from your employees and give them a time frame to comply. Ask your employees to complete the necessary forms from various government agencies to verify their legal status and consolidate the appropriate withholding taxes and deductions. Once you collected the information arrange them properly into employee files.
Proper and timely payment
The last step in the payroll process is to pay your employees with their proper salaries and wages and file the appropriate forms to various government agencies. If all things are properly setup you will not have any problem with paying your employees and paying various agencies.
This process will continue but we assure you that once everything is properly setup it will be easier than before. If you need any help in establishing or setting up your Philippine payroll process you can send us a message or call us at +63(2)535-SEED / 63(2)535-7333.
Infographic on how to handle payroll easily
To further help you on how to handle payroll easily we would like to share with you this very helpful Payroll inforgraphic from Intuit. Do share this article as well.