Accounting and Tax · Payroll

Payroll and government contributions for your staff

Staff are paid correctly, tax is withheld and contributions reach the right agencies. We run the cycle so you do not have to track the rules.

Overview

More than paying salaries

Philippine employers do more than pay salaries. Each payroll involves income tax withheld on compensation and paid to the Bureau of Internal Revenue (BIR), plus contributions to three agencies: the Social Security System (SSS), the Philippine Health Insurance Corporation (PhilHealth) and the Home Development Mutual Fund, known as Pag-IBIG. Employees must also receive 13th month pay, and the year ends with certificates and reports of what each person earned and what tax was withheld. The employer carries legal responsibility for all of it.

Mistakes are common because contribution tables and rules are revised from time to time, and each agency has its own online system and remittance schedule. Late or missing remittances can bring penalties and hurt employees who later claim benefits or loans. We keep employee records, compute pay and deductions with the rates currently in force, issue payslips, and prepare the remittances and reports for each agency. Where a rule depends on your industry or the employee’s status, we confirm it before applying it.

What we handle

The full payroll cycle

From the monthly payslip to the year-end report, we handle each stage.

Payroll and payslips

Pay computed from attendance, leave and overtime records, with a clear payslip for every employee each cycle.

Withholding tax on pay

Income tax on compensation computed, reported and remitted to the BIR, with year-end certificates for employees.

SSS, PhilHealth and Pag-IBIG

Employer and employee shares computed and remitted to each agency, with member records kept up to date.

13th month pay and annual reports

13th month pay computed for each employee, plus the year-end compensation reporting required of employers.

How it works

How a payroll cycle runs

Each cycle follows the same sequence, with your approval before money moves.

1

Employee setup

We collect contracts, tax and agency numbers and pay terms, and register new hires with each agency where needed.

2

Payroll run

We compute gross pay, deductions and net pay, then send you a summary for approval before payslips go out.

3

Remittances

Withholding tax and contributions are prepared and remitted to each agency by its schedule, with records saved.

4

Year-end

13th month pay is computed, certificates of compensation and tax withheld are prepared, and the annual report is filed.

Why run payroll with ILA

Current rates applied

We update contribution tables and withholding rules when agencies change them, so computations stay correct.

Employee records in order

Clean remittance records protect your staff when they later claim benefits or loans.

Linked to your books

Payroll posts straight into the accounts we keep, so labor cost, taxes and cash all agree.

Frequently asked questions

Payroll questions we hear most

Employers generally register with and remit to the Social Security System, PhilHealth and Pag-IBIG, and they withhold income tax on compensation for the BIR. Each agency has its own portal, schedule and member records. We register the company where needed and keep the remittance calendar for you.

Rank-and-file employees are generally entitled to 13th month pay each year, based on the basic salary earned in that year. Treatment of some roles and pay arrangements depends on the rules and the contract. We compute it per employee and advise on unusual cases before the payout.

Yes, though the rules differ case by case. Tax treatment and agency coverage for foreign staff can depend on their work permit, residence and contract, so we review each person before the first payroll. We then apply the correct withholding and contributions and document the basis.

Ready to hand payroll to a team that knows the rules?

Book a free consultation and we will review your current payroll set up and remittances.