On Sprout Payroll, government-mandated benefits (SSS, PhilHealth, HDMF) can be included in your payroll run--making payroll processing easier and quicker than ever before! Here, you can see how the system would compute for the contributions as well as how you can validate if these computations are correct and accurate.
Compute Government-Mandated Benefits
Here's how to compute the government contributions during a payroll run:
1. Go to the Payroll Runs tab and create a new payroll run by clicking the Create New Payroll button at the bottom of the page.
2. Make sure to tick the corresponding radio buttons and check boxes under the Payroll Options section of the payroll run setup.
*Note: If only Yes is selected for PHIC, SSS, and Pag-ibig, the deductions will be divided into 2 periods
*Note: If only Yes is selected as well as Full for PHIC, SSS, and Pag-ibig, the deductions are done once a month.
3. Once you have selected the preferred deduction setup, you may process your payroll as you normally would.
Validate the Government Deductions
Once the payroll has been processed, you can check if the computations are accurate based on the tables provided in the References (Setup > References). The deductions would be based on the coverage type set on your Company profile.
*Note: For By Month (Custom), deductions will be based on the employee's monthly salary whereas if it's set to By Period (Gross), the system will base their deductions on their actual income per period.
For the SSS Contributions, you may refer to the SSS table to check if the computation is correct.
As for PhilHealth contributions, get the fixed income for the month and multiply it by 2.75%.
Finally, for the HDMF contributions, it will be a fixed deduction of P100 per month. So per period, this would be P50.
For a more in-depth discussion on how government contributions are computed, you may take a look at our articles below:
That's it! You've learned how to compute and validate the government contributions! For questions or concerns, please feel free to reach out to us at firstname.lastname@example.org! We can't wait to hear from you!