2. Salaries Expense
Salaries of employees must be properly
computed and paid at a specified time.
Weekly
Bi-monthly
Monthly
3. Social Security System
(SSS)
Under PD No. 24, “no person shall be employed
unless he has a social security number.” It is
therefore a requirement that all employees in the
private sector be members of the Social Security
System (SSS).
The system provides benefits and services to its
members which include the following: salary loans,
educational loans, housing loans, sickness and
death benefits, unemployment benefits, disability
benefits, pension benefits and reimbursement of
funeral expenses for deceased members.
4. Social Security System
(SSS)
In consideration for all these benefits, the
employee is required to make a monthly
contribution in accordance with a contribution table
provided by the SSS.
This contribution of the employee is deducted from
his salary.
The corresponding contribution of the employer is
an operating expense, i.e., SSS Contribution
Expense.
5. Philhealth
The Philippine Medical Care Commission (PMCC)
was established to provide hospitalization and
other medical benefits to its members and their
dependents.
Contributions are made according to a given table.
Similar to SSS, the contribution is shared between
the employee and his employer.
The contribution of the employee is deducted from
his salary. The contribution of the employer is an
operating expense, i.e., Philhealth Contribution
Expense.
6. Pag-IBIG Fund
The Pag-ibig Fund is a provident savings and
housing fund for employees established under P.D.
No. 1752.
It aims to generate mass savings geared towards
financing homes for its members.
All private employees who are members of the SSS
and their employers are covered by the fund
compulsorily.
The employer and its employees in accordance
with the pagibig contribution table make
contributions to the Pag-ibig Fund.
7. Withholding Income Tax
Under the Bureau of Internal Revenue regulations,
every employer is required to deduct and withhold
income tax from the salary of its employees in
accordance with a withholding tax table.
The amount of income tax to be withheld from the
employees will depend on whether the employee is
single, married, a head of the family, a married
woman whose husband is also working, and on the
number of his qualified dependents.
