Most of us know payroll as appreciating employee services through compensation. It is the best way to compensate employees for their hard work and impact on your company. They incentivize employees to work better, to have a great employee-company relationship, which can operate the business to a greater extent.
Here are 4 things to make you understand how Payroll really works:
1. Paying Your Employees
How they’re paid: Gone are the days where employees receive paychecks and other hassle payment terms. Direct Deposit has been a staple in businesses, as it is saves your employees tracking paper checks, and saves your employees a trip to the bank.
Building a Package: In addition to basic salaries, you can give employees allowances and commissions to better incentivize your employees. Benefits and allowances are a great way to boost employee retention and possibly attract more talent; plus it can save you and your employees taxation fees.
Scheduling payroll: Most companies release employee salaries on the 15th and 30th of every month. But there are different schedules as well, depending on the companies policies; it can be released on different dates, weekly payouts and etc.
2. Think About the Taxes
Employee taxes: When running payroll, you need to withhold income and payroll taxes from the employees’ pay, while also thinking about other government contributions such as SSS, Pag-IBIG, and PhilHealth. A lot of technical details are involved in here, but you have nothing to worry if you are using a managed service solution. Imagine riding a plane, you just wait to get to the destination without thinking about flying it.
3. Reporting to the Government
Reporting your payroll tax withholdings, payments and employee statuses is a very “taxing” job, with requirements that often depend on the size of your payroll, and the type of your business. To avoid the hassle and burden of filing yourself, make sure your payroll provider will do this for you.
4. Complying with the Regulation
The Philippines have very difficult labor regulations on minimum wage, overtime rules, labor laws, employee termination procedures, and more. Luckily, we’re here to make everything easier and better. Our experts are Certified Payroll Professionals that understand the intricacies and policies of payroll. They can handle your payroll accurately and seamlessly while maintaining all compliances and company policies in place.
Working with Bridge PayDay
This guide I’ve written makes payroll simple and easy to understand, but in reality it’s quite difficult to comprehend. It is a complicated function that is necessary in every company that surely takes a lot of time and effort to just understand.
However, we believe that companies deserve stress-free payroll to make work-life better and just like this guide, Bridge is here to make it easier for you and your employees.
Here at Bridge, we don’t just process your payroll but we work with you every step of the way. We do this by combining a powerful software with industry expertise for accurate, efficient, flexible, and secure payroll.