Preparing Payroll Computations

One of the most challenging task of being an HR Generalist is payroll preparation. While most companies go about this by having the Accounting or Finance Department do the needed computation, some companies do not have the budget for additional manpower to handle the payroll. In those cases, it would usually be the HR who would have to compute the payroll as well as the annual income tax.

Because the payroll preparation can be quite tricky, it is important that the HR personnel be very aware of the intricacies that comes with the computation of the monthly payroll. Some of the things that an HR personnel would have to consider would include:

• whether the employee is monthly-paid or daily-paid
• the number of working days
• holidays
• how SSS, PhilHealth and HDMF should be deducted
• how withholding tax should be computed
• treatment of bonuses and allowances