By: Anna Alyssa
There are many business processes but the most crucial is that of payroll.
Payroll processing is one of the most critical and complicated business processes. Since SMEs have fewer employees than large enterprises, they tend to do payroll manually or with the help of spreadsheets. But then, these methods are not reliable and are highly susceptible to errors. That is why an automated cloud payroll solution is recommended to do the job of payroll processing with efficiency and accuracy.
But first what exactly is payroll? It is the process of paying salaries to the employees of a certain company, for a job done and delivered. It’s how employees earn their keep. It usually starts with preparing a list of employees to be paid, computing their days worked in a cycle, making deductions where needed, and then ends with recording those expenses.
The Human Resource Department takes care of payroll but it takes working together with Finance as well as the payroll staff. The process of working together may be cumbersome at times, which is why all payroll complexities can be back-stopped up by employing the appropriate technology – an automated cloud payroll solution to make payroll processing easier.
And then there is the payroll cycle. What is a payroll cycle? It is the time gap between two salary disbursements. Businesses can opt to pay salaries on a weekly, bi-weekly, or monthly basis. Generally, it is processed bi-monthly in the Philippines. Payroll in the Philippines follows a monthly cycle, depending on the employer and the sector. Employers must pay salaries once every two weeks at intervals of not more than 16 days. There is also a 13th-month pay provision, a bonus of one extra month of the employee’s regular salary. This has to be paid in December.
There are different kinds of payroll options:
- Remote – If the company is a subsidiary, chances are the payroll is done by the parent company. Although it streamlines the process, the regulations for each remote employee differ.
- Local – There are companies who outsource their payroll to a local payroll processing firm.
- Internal – If you have a large organization based in the Philippines, it means that payroll is done internally as it requires more resources. Companies must be well-versed with the Philippine Labor Code, tax policies, and employment laws. And the use of an automated cloud payroll solution is a plus.
Now, here are some payroll terms that you ought to know, too.
1. Gross Pay – It is the sum total of all the components of the salary package offered to an employee before all the deductions.
2. Net Pay – It is the take-home pay in other words. It’s the employee’s gross pay minus tardiness and absences and minus government-mandated deductions such as withholding income tax, social security, and housing, and PhilHealth.
3. Overtime – The extra hours rendered by an employee in a company is called overtime. The overtime pay rate depends on the company-mandated policies regarding additional pay for overtime.
4. Pay Period – It is the duration of time or time frame within a given period usually based on a bi-weekly or monthly basis.
5. Compensation – It involves managing, analyzing, and determining the salary, benefits, and incentives paid to the employees for their work.
6. Contractual employees – They are not regular employees per se, but are just employed on a temporary basis. Their terms of employment are stipulated in a contract.
There are also things to consider like keeping up with government compliance, deducting withholding taxes, holiday pay, and night shift differentials, plus the challenges that surround HR and payroll processing namely: security of data, regulations, compliance, and business disruptions.
To get rid of all the payroll headaches, the most common solution is to have an HRIS provider in the Philippines. One reliable one is EasyHR.
How EasyHR manages payroll in the Philippines.
EasyHR – your complete cloud-based software solution for payroll and HRIS needs in the Philippines!
As a business owner, you know that managing payroll and HR tasks can be time-consuming and overwhelming. But with EasyHR’s cloud payroll and HRIS software, you can automate these processes and focus on what really matters – growing your business.
EasyHR is designed specifically for small and medium-sized enterprises (SMEs) in the Philippines. Our cloud-based payroll HRIS system is intuitive, user-friendly, and accessible from anywhere with an internet connection. Plus, it’s affordable and customizable to suit your unique business needs.
How can you benefit from EasyHR?
- Affordable – With EasyHR, you get the best of both worlds: a powerful payroll and HR system at a very affordable cost. Its platform design ensures that deployment and maintenance expenses are kept to a minimum, resulting in more savings on the part of the company.
- Compliance – Staying in sync with the law is a foremost concern. Compliance is critical in any business, and EasyHR can help ensure that you stay on the right side of the law. EasyHR is an HRIS provider in the Philippines that is made and designed to comply with relevant laws and regulations related to payroll processing, including the calculation of withholding taxes and mandatory deductions such as HDMF, PhilHealth, and SSS contributions.
- Reporting – EasyHR provides HR departments with detailed reporting capabilities and reporting features that can show trends and patterns. This can help determine strengths and weaknesses so the company can be better equipped in making more strategic decisions. Needless to say, generating the required reports to the BIR, SSS, HDMF and PhilHealth is just a few clicks away.
- Improve Team Efficiency – EasyHR allows teams to share data and information in real time, providing better coordination and collaboration among team members. With EasyHR, employees can easily coordinate and collaborate, increasing team efficiency and saving a lot of time and energy.
- Always Updated – With EasyHR’s cloud-based system architecture and design, you are always guaranteed the latest version of the software.
Why go through the hassle of payroll when there is an HRIS provider in the Philippines that can help you have an overall comprehensive and user-friendly automated cloud payroll solution that will simplify and streamline your payroll and HR processes?
With its advanced features and customizable options, EasyHR is the ideal solution for SMEs in the Philippines looking to improve their HR management and efficiency. For a free demo: https://human-incubator.com/easy-hr/
