Payroll Center

The Payroll Center is where you process and calculate employee salaries based on approved time keeping records. This module handles all computations including basic pay, overtime, deductions, and government contributions.

Overview

The Payroll Center:

• Calculates gross and net pay
• Applies deductions and contributions
• Processes allowances and benefits
• Generates payroll register
• Prepares payment files

Accessing Payroll Center

1. Navigate to Manpower in the sidebar
2. Click Payroll to expand
3. Select Payroll Center

Pre-Processing Checklist

Before starting payroll processing, ensure:

• ✅ All time keeping records are approved
• ✅ Employee information is up to date
• ✅ Government contribution tables are current
• ✅ All adjustments are entered
• ✅ Leave balances are verified
• ✅ New employees are properly enrolled

Processing Payroll

Step 1: Create New Payroll Run

1. Click New Payroll Run button
2. Fill in the details:
   • Payroll Period: Select the cut-off period
   • Payroll Group: Choose employee group (Monthly, Semi-monthly, etc.)
   • Pay Date: Set the actual payment date
   • Description: Add notes (e.g., "January 2024 - 2nd Cut-off")
3. Click Create

Step 2: Load Employee Data

1. The system automatically loads:

   • Employees in selected payroll group
   • Approved time keeping records
   • Active salary rates
   • Configured deductions
   • Government contributions

2. Review the employee list:

   • Green check ✓ = Ready to process
   • Yellow warning ⚠️ = Has issues to review
   • Red X ❌ = Cannot process (missing data)

Step 3: Review Earnings

For each employee, the system calculates:

Basic Earnings:

• Basic Salary (based on pay rate)
• Regular hours worked
• Pro-rated salary (for partial months)

Additional Earnings:

• Overtime Pay
  • Regular OT (125% of hourly rate)
  • Rest day OT (169% of hourly rate)
  • Holiday OT (200% of hourly rate)
• Night Differential (10% additional)
• Holiday Pay
• Allowances (Transportation, Meal, etc.)
• Incentives and Bonuses

Click on any employee to see detailed computation.

Step 4: Apply Deductions

The system automatically applies:

Government Contributions:

• SSS (Social Security)
• PhilHealth
• Pag-IBIG
• Withholding Tax

Company Deductions:

• Tardiness/Absences
• Loans (SSS, Pag-IBIG, Company)
• Advances
• Other deductions

To modify deductions:

1. Click the employee's name
2. Go to Deductions tab
3. Add/Edit/Remove deductions
4. Provide justification
5. Save changes

Step 5: Calculate Net Pay

The system computes:

Gross Pay = Basic Pay + Overtime + Allowances + Other Earnings
Total Deductions = Government Contributions + Loans + Other Deductions
Net Pay = Gross Pay - Total Deductions

Step 6: Review and Validate

1. Click Validate Payroll button

2. The system checks for:

   • Negative net pay
   • Unusual amounts (too high/low)
   • Missing contributions
   • Incomplete records

3. Review validation results:

   • Errors (Red) - Must be fixed
   • Warnings (Yellow) - Should be reviewed
   • Info (Blue) - For your reference

Step 7: Generate Payroll Register

1. Click Generate Register

2. Review the payroll summary:

   • Total employees processed
   • Total gross pay
   • Total deductions
   • Total net pay
   • Department breakdowns

3. Export options:

   • PDF (for printing)
   • Excel (for analysis)
   • CSV (for integration)

Step 8: Approval Process

1. Click Submit for Approval
2. Select approver from list
3. Add notes if needed
4. Click Submit

Approval stages:

1. HR Review - Verify calculations
2. Finance Review - Check budget and funds
3. Final Approval - Authorize payment

Step 9: Lock Payroll

Once approved:

1. Click Lock Payroll
2. Confirm the action
3. The payroll becomes read-only
4. Payment files are generated

Payment Processing

Generate Bank Files

1. Click Generate Bank File

2. Select bank format:

   • BDO
   • BPI
   • Metrobank
   • UnionBank
   • Other banks

3. Choose payment method:

   • Bank transfer
   • Payroll ATM
   • Check

4. Click Generate

5. Download the file

6. Upload to bank portal

Cash Payment List

For cash payments:

1. Click Cash Payment List
2. System shows employees paid in cash
3. Print the list
4. Use for cash distribution

Special Scenarios

13th Month Pay

1. Click Special Payroll > 13th Month
2. Select computation period (Jan-Dec)
3. System calculates based on:
   • Total basic salary earned
   • Divided by 12 months
4. Review and process

Bonus Processing

1. Click Special Payroll > Bonus
2. Import bonus list or enter manually
3. Apply tax rules
4. Process with regular payroll or separately

Final Pay (Resignation/Termination)

1. Click Special Payroll > Final Pay
2. Select employee
3. System calculates:
   • Last salary
   • Pro-rated 13th month
   • Leave conversions
   • Less: final deductions
4. Generate clearance form

Adjustments and Corrections

Before Locking:

1. Open the payroll run
2. Click on employee
3. Make adjustments
4. Save changes
5. Recalculate

After Locking:

1. Create adjustment entry
2. Process in next payroll
3. Document the reason

Reports

Standard Reports

• Payroll Register - Complete payroll details
• Bank Register - Banking summary
• Cash Register - Cash payment list
• Deduction Summary - All deductions by type
• Department Summary - Payroll by department
• YTD Summary - Year-to-date earnings

Government Reports

• SSS R-3 - Monthly contribution list
• PhilHealth RF-1 - Remittance report
• Pag-IBIG MCRF - Member contribution
• BIR 1601C - Monthly withholding tax

Custom Reports

1. Click Custom Report
2. Select data fields
3. Set filters and grouping
4. Generate report

Best Practices

✅ DO:

• Always backup before processing
• Review warnings even if not errors
• Keep audit trail of all changes
• Process payroll 2-3 days before payday
• Verify bank file before uploading
• Print and file all reports

❌ DON'T:

• Skip the validation step
• Process incomplete attendance
• Ignore system warnings
• Make adjustments without documentation
• Delete locked payroll runs
• Share bank files via email

Troubleshooting

Calculation Errors

• Check employee salary settings
• Verify government tables are updated
• Review overtime rates configuration
• Ensure correct tax table is applied

Missing Employees

• Verify payroll group assignment
• Check employment status
• Ensure hiring date is before cut-off
• Verify time keeping has been approved

Cannot Lock Payroll

• Ensure all approvals are complete
• Check for validation errors
• Verify user has locking permission
• Ensure payroll period is correct

Bank File Issues

• Verify bank account details
• Check file format settings
• Ensure no special characters in names
• Validate total amount matches

Keyboard Shortcuts

• Ctrl + N - New payroll run
• Ctrl + S - Save changes
• Ctrl + P - Print register
• F5 - Refresh calculations
• F9 - Validate payroll

Related Topics

• Payroll Time Keeping - Approve attendance
• Payslip Center - Generate payslips
• Government Reports - File contributions
• Payroll Configuration - System settings

---

⚠️ Critical: Always verify calculations before locking payroll. Locked payroll cannot be edited. For corrections after locking, process adjustments in the next payroll period.