You can upload historical data for an individual employee to determine their Year-To-Date earnings, and this can be done for the following:
- Earnings for the current company before the company started using Salarium.
- Earnings from an employee's previous company before they joined the current company using Salarium.
This historical data is used in Annualization to compute the correct total amount of tax the employee should have been paid for the year and enables companies to make adjustments accordingly.
An employee's Year-To-Date summary can be found by going to Employees>select Employee>Payroll Records.
Under “Year To Date Information”, you can select either Update Current Employer YTD Data or Update Previous Employer Data.
Update Current Employer YTD Data - this is where you consolidate the employee taxable and non-taxable earnings before your company joined Salarium.
Note: It is not possible to add YTD information for the previous year.
Non Taxable income
- Minimum Wage - tick if the employee is a minimum wage earner.
- 13th Month Pay and other benefits - total non-taxable 13th month pay and other non-taxable employee income
- Contributions (SSS, Philhealth, HDMF, ETC) - total government-mandated employee contributions.
- De Minimis Benefits - Total non-taxable employee De Minimis benefits. If you want to know more about De Minimis benefits please click here: What is De Minimis?
- Salaries and other forms of compensation - Total non-taxable employee income, either monetary or non-monetary income.
- Basic Salary - Total taxable basic salary of the employee
13th Month Pay and other Benefits - Total Taxable 13th month pay and other benefits
- For example: Allotted non-taxable earnings in a year is Php82,000. However, the employee has already earned Php87,000 in the current year, so Php5,000 will be added to the Taxable Income of the employee.
- Salaries and Other Forms of Compensation - Total taxable employee income, either monetary or non-monetary income.
- Withholding Tax - Total employee withholding tax.
Update Previous Employer Data - this is where you can consolidate the employee taxable and non-taxable earnings from their previous employer (You can get this information from the Employee 2316 BIR Form from the previous employer)
You will need to provide the following information for the employee’s previous company:
- Employer Name
- Employer Address
- Employer TIN
- Employer Zip Code
Taxable and non-taxable information is the same as current employer historical data.
Note: If you add Year To Date information and set your Annualization schedule to End of Each Month, the information will reflect on both the end of month annualization and the end of year annualization.