1. Accounting for Payroll
4 July 2013

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.