Where can I set up an Employee's Government Contributions?

Where can I set up an Employee's Government Contributions?

 

You can set up your employee's Government Contributions on his Earnings page.

Go Employees>Click Employee>Earnings.  Scroll down to the Contributions section.  Click Save after you have made your edits.

Note: When you create an employee his SSS and Philhealth Contributions will default to Based on Gross Income.  His HDMF Contribution will default to Based on Basic Income.

The Contribution Types are as follows:

Deduct SSS Contribution - Determines if an employee will make contributions to the Social Security System, and how these contributions are calculated
Deduct HDMF Contribution - Determines if an employee will make contributions to the Home Development Mutual Fund (Pag-Ibig Fund), and how these contributions are calculated
Deduct Philhealth Contribution - Determines if an employee will make contributions to the Philippine Health Insurance Corporation, and how these contributions are calculated

The Contribution options are as follows:

    • No - No contributions will be made.
    • Fixed Monthly Amount - You can determine the amount of the contribution. If you set your contributions to a fixed amount, they will not be calculated according to the contribution tables.
    • Based on Basic Income - Contribution amounts will be calculated according the where the employee’s Basic Pay Amount falls on the respective contribution table.
    • Based on Gross income - Contribution amounts will be calculated according the where the employee’s Gross Income falls on the respective contribution table.
    • Based on Gross Income w/o Non-Taxable Items - Contribution amounts will be calculated according the where the employee’s Gross Income excluding non-taxable allowances, bonuses and commission falls on the respective contribution table.

Note: Contributions considers all payrolls generated in the same month for the same employee.

Note: If your employees would like to make contributions that are higher than their required amounts, you can set the contribution to a Fixed Monthly Amount. However, employer contributions cannot be edited; these will always be according to the contribution tables.

Note: If an employee's contributions are Based on Gross Income, and their contribution settings are set to equally per pay, the system will not be able to show equal per pay contributions as their gross income is different for both periods. The system will take their gross income for the 1st period, multiply by 2, get contribution amount according to contribution table, then divide by 2.  For the second period, the system adds income from the first and second period, gets contribution amount based on contribution table, then subtracts the contribution amount that was already deducted from the employee in the first period to get the contribution amount for the second pay period.

Note: If your employee's Pay Rate type is set to "By Day" or "By Hour," Contributions cannot be set to Based on Basic Income as the employee is not salaried.

Note: Contributions based on Basic Income are not prorated, so if an employee starts in the second half of the month, a whole month's contributions will be deducted.  Contributions based on Gross Income are prorated.

Note: If you turn on an employee's contributions, payroll will make the necessary deductions even if you have not indicated the employee's Government Registration numbers (SSS, Philhealth, HDMF, TIN).

Note: Contributions are not prorated.  If your employee is hired in the middle of the month, he will still make a full month's contributions.

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