Payroll systems are very basic when it comes to business operations particularly if you have more than than five employees. In layman’s term, payroll is actually the company’s list of its employees, however this term is usually used to refer to: the total amount of money that a company pays its employees, a company’s records of its employees’ salaries and wages, bonuses, and withheld taxes.
If you are implementing a payroll program in your company be it manual or a computerized payroll software you must be aware of the following:
When is the Pay Day?
When will your employees get paid? Will their payment be on a daily, weekly or monthly basis or on an agreed schedule?
What are the payroll taxes and deductions that I have to include?
If you are employing people you also need to withold certain taxes as well as mandatory government benefits like SSS, PAG-IBIG, and PHILHEALTH among others. You need to pay the government taxes withheld from your employees salaries and wages – as well as payroll taxes your business owes.
What are the tax forms that you need to file?
This is when things get a little bit frustrating, but yes you have to fill out those necessary forms and submit them to the proper government entities. Forms need to be submitted and paid either monthly or quarterly depending on the government regulation.
Knowing the above basics will help you avoid problems commonly encountered in payroll management which usually includes:
Computation errors. This problem is commonly encountered particularly when you are using manual payroll management. Various details like hours worked, wages, witholding taxes, benefits and others gets complicated especially if your company is growing. Fortunately, Philippine Payroll Software can help you solve this problem.
Unable to meet deadlines. Not meeting deadlines is disastrous for a business. Your employees might get restless if they will not receive their payroll on time or you might face government sanctions and penalties if you fail to pay your taxes on time.
Business penalties. The Philippine Bureau of Internal Revenue (BIR) is enhancing its tax collection efforts so expect penalties when you missed your deadlines, calculations are not correct or there are material misstatements in your submitted forms.
The Philippine Payroll Software is created to help businesses avoid problems in their payroll management. Since 1999 we had helped over 4,000 companies already and they are still growing. If you want to know more about how to enhance your payroll management you can drop us a call at +63(2) 535-7333 and +63(2) 709-9881 or send us a message.