Where can I set up an employee's Withholding Tax Type and Entitlements?

Where can I set up an employee's Withholding Tax Type and Entitlements?

You can set up an employee's Withholding Tax Type and Entitlements on his Earnings page.  You can also see the employee's Basic Pay and Pay Rate Type here.

Go Employees>Click Employee>Earnings.  Edit the fields as necessary and click Save.

Here, you can set up the following:  

Basic Pay Amount - An employee’s basic salary. Click here for more details.
Pay Rate Type - Determines if an employee is salaried or a waged worker. You can edit this value initially, but once you have entered a value, you can no longer change it on the employee’s Earnings page.  You will need to make a Basic Pay Adjustment.
Withholding Tax Type -  Determines how an employee’s salary will be taxed in accordance with the following BIR Tax Types:

      • Compensation - tax is withheld from income payments to individuals arising from an employer-employee relationship.
      • Minimum Wage Earner - tax is not withheld, but the employee is included in government forms as a Minimum Wage Earner.  All of the employee's earnings, including commissions, are not taxed.
      • Expanded - The tax rate is set to 10%.  This is used for Consultants.
      • Special - for employees who are covered by special taxation laws with special entities (for example, ROHQ, RAHQ, OBU). The tax rate is set to 15%.
      • None - The employee will not pay tax.

Timesheet Required - Determines whether or not an employee will need to clock in/out, or upload a timesheet for his attendance to be counted.
Entitled Unworked Regular Holiday Pay - Determines whether or not an employee will be paid if he does not work on a Regular Holiday.
Entitled Unworked Special Holiday Pay - Determines whether or not an employee will be paid if he does not work on a Special Holiday.
Entitled Holiday Premium Pay - Determines whether or not an employee will be paid a premium when working on a Regular or Special Holiday. To view the default Day/Hour Rates click here.
Entitled Rest Day Pay - Determines whether or not an employee will be paid when working on their Rest Day.  If they are entitled and they work on their Rest Day, they will be paid the premium rate.
Entitled Overtime - Determines whether or not an employee will be paid for working Overtime.  If the are entitled and they work Overtime, they will be paid the premium rate.
Entitled De Minimis - Determines whether or not an employee will receive De Minimis Benefits. For more information on De Minimis, click here. For more information on setting up De Minimis, click here.
Entitled Night Differential - Determines whether or not an employee will receive a Night Differential Premium when working Night Shift hours.  For more information on how to set up Night Differential coverage hours, as well as information on how to set the Night differential rate click here.

Note: If you set Timesheet Required to "No", the Entitled Unworked Regular Holiday Pay and Entitled Unworked Special Holiday Pay fields are automatically set to "Yes."

Note: If employees are Entitled Unworked Holiday Pay, they cannot file leave for the holiday.  If they are not Entitled Unworked Holiday Pay, they can file leave for the holiday.

Note: If employees are not Entitled Unworked Holiday Pay, and they do not clock in on a holiday, the system will see them as absent for that day.

    • Related Articles

    • How can I set up Leave Entitlements?

      You can set up accrual and conversion rules for Leave Credit.  Go to Company Setup > Time > Leaves > Leave Entitlement.  Note: At any time, you can still manually add or remove Leave Credit. Click Add Leave Entitlement.  The form will pop up. Leave ...
    • How does Salarium compute Annualized Tax?

      Annualization is the process of determining if employees are eligible for a tax refund or need to pay additional tax at the end of a period. Salarium provides automatic computation of tax annualization for the following: End-of-Year Annualization ...
    • Computation of Annualized Tax (Part 1)

      Annualization is the process of determining if employees are eligible for a tax refund or need to pay additional tax at the end of a period. Salarium provides automatic computation of tax annualization for the following: End-of-Year Annualization ...
    • Computation of Annualized Tax (Part 2)

      STEPS TO COMPUTE THE TAX ADJUSTMENT Step 1: Compute the total taxable income of the employee. Payroll Date Taxable Income 2/28/2014 22,230.24 3/30/2014 26,968.70 4/30/2014 26,968.70 5/31/2014 26,968.70 06/31/2014 26,968.70 7/30/2014 26,968.70 ...
    • How can I set up Government Contributions?

      Once you have created Payroll Groups, you can now set up how often contributions are made to the SSS, HDMF, Philhealth, and Withholding Tax, as well as how they are calculated. To access your Contribution settings, go to Company Setup> Payroll> ...