Philippines Employer Payroll — BIR Form 1601-C, SSS, PhilHealth & Pag-IBIG

Confirm the employer is registered with BIR (Certificate of Registration — BIR Form 2303), SSS, PhilHealth, and Pag-IBIG. Collect each employee's tax identification number (TIN), SSS number, PhilHealth number, and Pag-IBIG MID. Obtain BIR Form 2305 (Employee's Withholding Exemption Certificate) or the updated BIR Form 1902/2305 from each employee to establish filing status and allowable personal exemptions.

Determine each employee's gross compensation for the payroll period, identify tax-exempt items (13th month pay and other benefits up to PHP 90,000, de minimis benefits within BIR thresholds, SSS/PhilHealth/Pag-IBIG employee share), and compute the net taxable compensation subject to withholding. Minimum wage earners are entirely exempt from withholding tax on statutory minimum wage, holiday pay, overtime pay, night-shift differential, and hazard pay under RA 9504.

Compute mandatory employer and employee contributions for SSS (15% of MSC; employee share approx. 4.5%, employer 9.5%, MSC range PHP 5,000–PHP 35,000 under SSS Circular 2024-006), PhilHealth (5% of monthly basic salary split 50/50, income floor PHP 10,000, ceiling PHP 100,000 per PhilHealth Circular 2024-0009), and Pag-IBIG (2% employee + 2% employer for compensation above PHP 1,500). Both employer and employee shares are payable monthly.

Apply the graduated withholding tax table on compensation (TRAIN Law — RA 10963, as implemented by RR 11-2018, Table C for monthly payroll) to each employee's net taxable compensation. Annualise the tax for the year, compute the monthly withholding, and prepare BIR Form 1601-C for submission via eFPS or eBIRForms on or before the 10th of the following month (or as prescribed per RDO). Employees earning PHP 250,000 or below annually pay zero income tax.

Remit SSS, PhilHealth, and Pag-IBIG contributions by their respective deadlines and retain official receipts. SSS payment deadlines are staggered by the last digit of the employer's SSS number (10th to last day of the month). PhilHealth employer contributions are due by the last day of the month following the applicable period. Pag-IBIG contributions are due by the 15th of the following month. File the relevant remittance schedules (SSS R-5, PhilHealth RF-1, Pag-IBIG MCRF) alongside payments.

At year-end, reconcile cumulative withholding against the annual income tax due for each employee using the annual withholding tax table. Issue BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) to all employees on or before January 31 of the following year. File BIR Form 1604-C (Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes) with the alphalist of employees by January 31. Employees with only one employer and fully withheld tax are covered by substituted filing and need not file their own annual ITR.