On 8 May, AYP Group and JuzTalent has held their first webinar series called “Payroll Journey – The Philippine’s Style”. This was a 45 minutes webinar, a sharing session to almost 80 attendees who are either payrollers, HR personnel or attendees who would like to learn
1. Statutory Contributions (SSS/HDIC/IDMF)
2. Income Tax Computation and Report
3. Complex Payroll Calculations
During the Philippine’s ePayroll webinar, there was overwhelming of questions asked from the ground. As such, we have picked up Top 10 questions and written down the answers which you can also take it as a reference point:
1. If Saturday is included on the contract as part of the regular work days, is Saturday considered working on a rest day?
>> If Saturday is part of the regular work days it is considered as working day not rest day.
2. How is the night differentiation computation like?
>> Night Differential is computed this way: (Hourly rate * 10% * No of hours worked from 10PM to 6AM only)
3. Are there any benefits/subsidy that an employee or an employer can get during this covid situation now?
>> The Government is providing below 2 programs for employers to help their employees:
1. Cash Amelioration Program
2. Small Business Wage Subsidy
Employees may also get Calamity Loans from SSS and HDMF
4. Do expat workers in Philippine need to pay statutory contributions? If they have to, what kind of statutory?
>> Expat workers are required to pay for SSS & Philhealth Contribution while HDMF is not required.
5. What is non-taxable income?
>> These are wages given to an employee or individual without any taxes withheld (e.g. Statutories and De Minimis Benefits)
6. Let say the employee work from 12 noon to 12 am. Do we need to pay overtime + night differential?
>> Yes, Overtime and Night Differential pay will need to be given to employee. Normal working hours in a day is 8 hrs plus 1 hr lunch break, totaling 9 hours.
As such, the normal working hours for the employee will be from 12 PM to 9 PM. The Overtime pay will start to calculate from 9 PM to 12 AM while Night Differential Pay will be computed from 10 PM to 12 AM.
7. What is the basis of Overtime Rates?
>> Overtime Rates are based on the Philippine Labor Code.
8. What is the interest rate for the HDMF contribution?
>> For HDMF Contribution is computed as 2% of Basic Salary. Employee may increase his/her contribution above 100 while employer contribution is fixed at Php 100.00.
9. How do we know if the earnings is non taxable? Is there any items?
>> All Statutories and salary items that fall as de minimis are non-taxable. 13th Month Pay not exceeding Php 90,000.00 is also a non-taxable item.
10. Is there any tax penalty applicable in PH in case of the employees don’t have their taxes submitted, or have taxes miscalculated?
>> Yes, there are penalties if the employees don’t submit their taxes. Miscalculated tax computation can be amended by the filer.
Our Philippine’s payroll powerpoint is also available for download >> AYP x JuzTalent – Payroll Journey – The Philippines Style
If you have further questions pertaining to Philippine’s payroll or tax or how JuzTalent can assist, feel free to email us at either email@example.com or firstname.lastname@example.org. We are here to help and we hope we can value-add you and your company in some ways.