Sprout Payroll introduced the 2022 PHIC 4% hike last May 2022 and along with the 2022 4% table increase, Sprout Payroll also added the Premium Rate tables for the years 2023 to 2025. These can be viewed under Setup > References > PhilHealth as shown below:
The Payroll system will base the payroll run’s Premium Rate on the Payroll Run’s YEAR and MONTH. This means that the system will not base it on the time you processed your payroll run, but on the YEAR and MONTH inputted on the payroll run as shown below.
Once the system reads the payroll run’s YEAR and MONTH, the system will now automatically choose which Premium Rate to use.
*Transaction Date, From, and To do not affect the system’s logic. You may disregard these components.
SCENARIO 1:
You have a pending payroll run for December 2022, and will be processing the payroll run in 2023.
Premium Rate: 4% PHIC deduction
- In this payroll run, the client used the Year: 2022 and the Month: December.
- Given that the year used is 2022, the Premium Rate will be the 2022 4% PHIC deduction
SCENARIO 2:
You will process a payroll run for January 2023,
Premium Rate: 4.5% PHIC deduction
- In this payroll run, the client used the Year: 2023 and the Month: January.
- Given that the year used is 2023, the Premium Rate will be the 2022 4.5% PHIC deduction
NOTE: The PHIC rate increase has been deferred until further notice. With this, the basis of the 2023 PHIC rate will still be 4.00%
Feel free to reach out to us at Experts for any questions or concerns. We'll be glad to help!
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