AccountingPayroll Reports in the Philippines: A Guide

A payroll report is a legal requirement for businesses in the Philippines, ensuring compliance with labor laws and accurate employee compensation. It is also a valuable tool for financial tracking and filing remittances to government agencies like the BIR, SSS, PhilHealth, and Pag-IBIG. To help you manage your payroll more effectively, we’ll explain a payroll report, how to create one, and provide a sample template.

What is a Payroll Report

A payroll report is a detailed document that summarizes employee compensation, deductions, and contributions for a specific pay period. In the Philippines, it includes salaries, overtime, bonuses, and mandatory contributions to agencies like the Social Security System (SSS), the Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund (Pag-IBIG). It also accounts for withholding taxes as the Bureau of Internal Revenue (BIR) requires.

Payroll reports serve multiple purposes: they ensure employees are paid correctly, help businesses comply with government regulations, help in financial tracking, and provide a record for audits. These reports are typically generated monthly or semi-monthly. Accurate payroll reporting prevents penalties from regulatory bodies and maintains employee trust.

Payroll Report Requirements

Based on Department Order No. 183, Series of 2017, you should maintain payroll records that include the following:

• Employee Full Name
• Employee Number or ID
• Position/Designation
• Status of Employment 
• Daily Wage or Monthly Rate
• Days Worked or Hours Worked
• Overtime Hours (if any)
• Rest Days, Holidays, and Leaves Taken
• Gross Pay
• Deductions (such as government contributions)
• Net Pay
• Pay Period Covered
• Date of Payment

This information should be present in your payroll report. It’s common and often practical to organize payroll information across multiple spreadsheets or tabs to avoid cluttering.

Sample Payroll Report Template

Below is a simplified payroll report template. This template can be adapted to your company’s needs and used in spreadsheet software like Microsoft Excel or Google Sheets.

Payroll Report

Pay Period: [Start Date] to [End Date]

Professional Tips:

• SSS, PhilHealth, and Pag-IBIG contributions should be based on the latest contribution tables.
• Withholding tax follows the BIR’s tax table for the employee’s income bracket.
• Adjust columns for additional deductions (e.g., loans, advances, holiday pay) as needed.
• Keep daily Time Records (DTRs), pay slips, and proof of salary payments.
• Remember to include other required information, such as the employee’s position, daily wage, and hours worked, here or in a separate tab. 

How to Write a Payroll Report

Creating a payroll report in the Philippines involves several steps to ensure accuracy and compliance:

1. Gather Employee Data: Collect details such as employee names, positions, basic salaries, and hours worked (including overtime). Ensure you have updated records of attendance and leave.
2. Calculate Gross Pay: Add basic salary, overtime pay, allowances, and bonuses. Overtime pay should comply with the Labor Code of the Philippines, which mandates at least 125% of the regular hourly rate for overtime on regular days and higher rates for holidays or rest days.
3. Compute Deductions: Calculate mandatory contributions for SSS, PhilHealth, and Pag-IBIG based on the employee’s salary and the respective agency’s contribution tables. Use the BIR’s withholding tax table to determine income tax deductions.
4. Determine Net Pay: Subtract deductions from gross pay to arrive at the net pay for each employee.
5. Use a Template: Input data into a spreadsheet using a template or payroll software. Ensure formulas are set for automatic calculations to reduce errors.
6. Verify Compliance: Cross-check contributions and taxes with the latest government rates. File reports with SSS, PhilHealth, Pag-IBIG, and BIR as required.
7. Review and Distribute: Double-check calculations and distribute payslips to employees. Retain records for at least three years for audit purposes.

A Payroll Report Summary

For businesses needing a high-level overview, a payroll report summary condenses key data. This version focuses on totals rather than individual employee details, making it ideal for management or quick reporting:

Sample Payroll Summary Report
Pay Period: [Start Date] to [End Date]

• Total Gross Pay: PHP 120,000
• Total SSS Contributions (Employee Share): PHP 6,000
• Total PhilHealth Contributions (Employee Share): PHP 3,000
• Total Pag-IBIG Contributions (Employee Share): PHP 1,200
• Total Withholding Tax: PHP 0
• Total Net Pay: PHP 109,800

This summary is useful for budgeting, forecasting, or reporting to stakeholders. It can be paired with the detailed report for a complete payroll overview.

Final Thoughts

Payroll reporting in the Philippines is a legal and financial necessity. Businesses can correctly pay employee salaries and stay compliant by using a structured template, staying updated with government regulations, and carefully computing figures. Start with the sample template we provided, customize it to your needs, and consider partnering with us to manage your payroll more efficiently.

Are You Looking for an Efficient Way to Process Payroll? 

Proper payroll processing is a legal requirement for Philippine businesses. The process can be complex, involving accurate salary computations, timely deductions and remittances, and proper reporting. Managing these tasks can be especially challenging for businesses without a dedicated payroll team. 

Thankfully, Business Registration Philippines offers professional support for your business, including bookkeeping, payroll, auditing, and other accounting outsourcing services. Our team specializes in accounting and compliance-related services, ensuring your internal audits are thorough and aligned with Philippine regulations.

Contact us today to schedule an initial consultation with our experts.

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