Payroll Configuration

HMO or Health Maintenance Organization benefits are a usual perk employer award to employees as part of their payroll packages.

HMOs cover employee health insurance and help them access a network of healthcare providers, including doctors, clinics, and hospitals. Its coverage may range from preventive care and prescription drugs to hospitalization and surgery.

Depending on the employee plan and provider, the actual HMO coverage may vary. Employers who choose to provide HMO benefits include such in the payroll benefits package. This helps them attract talent and keep their employees healthy and worry-free in times of medical emergencies.

How to set up HMO in eezi?

Adding an HMO package

Suppose you want to add an HMO package for the first time or create a separate plan. In that case, below are the steps to add one in eezi.

  1. From the dashboard, Go to Payroll and then HMO.
  2. On the upper left-hand corner, click the “Add Package” button.
  3. Input the following:
    • Employee share (if applicable)
    • Employer share
    • Dependents
    • Amount per dependent
    • Payroll cut-off
    • Package details
  4. Once filled out and added, the package will automatically reflect on the HMO dashboard.

Editing or deleting an HMO package

Suppose you want to make changes to an existing HMO package or delete one altogether. In this case, below are the steps for editing and deleting:

  1. Go to the HMO section from the payroll dashboard.
  2. From the HMO tables, hover over to the package that you want to edit or delete and click the ellipsis.
  3. On the pop-up prompt, select Edit or Delete.

Assigning employees to an HMO package

Suppose you already have your HMO packages set up. The next thing you have to do is add employees. You may do this by following these steps:

  1. Hover over to the package you need to assign to an employee and select the Assigned Employees section on the row.
    1. If there are no assigned employees, it will say Assign.
    2. If there are employees under the package, it will say View.
  2. After clicking either, you will need to select a company.
  3. From there, you have to search and add people to the package by an employee or by the department and click Assign Employees.
  4. Once done, these changes will automatically reflect on your settings.

Viewing dependents

What if you want to check the dependents of an enrolled employee in your HMO program? Below are the steps:

  1. Go to the HMO dashboard under the payroll section.
  2. Hover over to the HMO with assigned employees under it.
  3. Click the View link for the packages with assigned employees.
  4. Once the employee list appears, hover over to the employee, find the column for the dependents, and click View.

Removing assigned employees

There may be instances where a previously enrolled employee would like to be excluded from the HMO program. In that case, you may remove them from the package by following these steps:

  1. Go to the payroll dashboard and go to the HMO section.
  2. Select the payroll package and find the assigned employee on the list.
  3. Select the employee that you want to remove.
  4. On the upper right-hand corner of the table, you will see four icons. Click on the last icon to remove and confirm.

Employees in the Philippines get deductions from their salaries to cover benefits as the law mandates. The common deductions from an employee’s pay are the following:

  • Social Security System (SSS): Contribution for retirement, disability, sickness, maternity, and death benefits. This deduction reflects as “SSS” or “Social Security” on the payroll.
  • PhilHealth or the Philippine Health Insurance Corporation (PHIC): Contributions for health insurance coverage. This item often reflects as “PhilHealth” or “PHIC” on the payroll.
  • Pag-IBIG Fund or the Home Development Mutual Fund (HDMF): Savings program offering housing loans, among other benefits. On the payroll, this item usually reflects as “Pag-IBIG” or “HDMF.”
  • Withholding Taxes: The income tax that an employer withholds from their employees’ salaries in compliance with the Bureau of Internal Revenue (BIR). This amount is dependent on the employee’s income bracket and applicable exemptions. This item reflects as “Withholding Tax” or “WT” on the payroll.
  • Other deductions: Employees may have other deductions from their salaries, either by voluntary agreement or authorized deductions. This includes company provident funds, union dues, HMOs, or salary advances.

To set up and modify these deductions on eezi, follow the steps below:

Setting up deductions

Suppose you are adding a new type of deduction previously not set on your payroll calculation. To do this, you need to add a new item to the row. The steps are as follows:

  1. Go to payroll and select the deductions section.
  2. Click the Add Deductions section and set a deduction name. Once added, your new item will show up on top of the list.

Editing or deleting a deduction

There may be cases where there a deduction may have modifications. In this case, you would need to follow these steps:

  1. From payroll, go to deductions.
  2. On the list of your set deductions, hover over the one you would like to modify.
  3. Click its corresponding ellipsis and select Edit or Delete.
  4. Once you are done, click Update Deduction.

Assigning an employee to deductions

Suppose you already have deductions added to your payroll set-up. In that case, you would only need to add employees to the group. To do this, below are the steps:

  1. Go to payroll, click deductions, and select a deduction type.
  2. Click assign and select your company from the prompt.
  3. Once you have selected a company, you can start searching for the employees to assign under a deduction.
  4. Next, you would also need to fill out the following information:
    1. Payroll Cut-Off
    2. Start Date
    3. End Date
    4. Amount Per Month
  5. Once filled out, click Assign Employees to save.

Removing an assigned employee from deductions

Suppose you want to remove an employee from a group of deductions. In this case, the following are the steps:

  1. Go to payroll, click deductions, and select one from the list.
  2. Next, find the employee you want to remove from the list.
  3. Click the ellipsis and select Remove Employee from the options.
  4. Confirm the removal, and your list will automatically be updated.

Employees in the Philippines may receive non-taxable fringe benefits called de minimis. These benefits are usually relatively small in value or not consistently given. As such, they are exempt from income tax and SSS computation as long as they do not exceed the legal threshold.

The Bureau of Internal Revenue (BIR) has its guidelines on the coverage and limits of de minimis benefits. The following may be considered as de minimis benefits:

  • Unused vacation leave credits converted to cash
  • Medical allowances to dependents
  • Rice subsidy
  • Uniform and clothing allowance
  • Actual medical assistance
  • Laundry allowance
  • Employee achievement awards
  • Christmas gifts

Though the law has set limits on de minimis benefits, they may still vary per company. Generally, these benefits are reflected as separate items on the compensation. Furthermore, these benefits are not subject to withholding taxes.To set up and modify de minimis benefits in the eezi suite, the following are the steps.

Adding de minimis benefits

Suppose you need to add another de minimis benefit. To do this, below are the steps:

  1. Go to payroll and click De Minimis.
  2. Click Add De Minimis on the upper left corner of the screen.
  3. On the prompt, input the following information:
    1. De Minimis Name
    2. Amount Per Month
    3. Payroll Cut-Off
  4. Once filled out, click the Add De Minimis button.

Editing and deleting De Minimis

There may be instances where you would need to modify a benefit. In this case, the steps are as follows:

  1. Go to payroll and click De Minimis from the selection.
  2. Hover over to the De Minimis item that you would like to modify.
  3. Click on the ellipsis and click Edit or Delete.
  4. Confirm the changes and check the updates on your list.

Enabling and disabling De Minimis

Suppose you do not want to delete a De Minimis benefit, but you do not want it to reflect on the next payroll. In that case, you may disable the benefit in the meantime. To do this, follow these steps:

  1. Go to payroll and click De Minimis from the selection.
  2. Hover over the De Minimis benefit that applies and toggle it to disable.
  3. To enable it back, just toggle the same button.

Employees in the Philippines are entitled to many bonuses and benefits. Some of these may be mandated by law or part of a company policy. Some of the common bonuses are as follows:

Bonuses for employees in the Philippines

13th-Month Pay

In the Philippines, this is a mandatory bonus that is equal to 1/12 of the employee’s basic salary for the calendar year. This may be paid in one period or divided into two installments, depending on the company policy. In the case of the latter, the first half is given before December 24th and the remaining half on or before May 31st of the next year. In the payslip, the 13th-month Pay reflects on a separate line.

Performance Bonuses

Employees may receive performance-based bonuses as a reward for exceptional work or the achievement of goals. This bonus can differ per company policy or based on performance appraisal. On the payslip, the performance bonus is a separate item from other types of compensation.

Spot Bonuses

As the name suggests, spot bonuses are employee rewards given on the spot. Usually, employers award this to employees who have performed well on a project or a vital task.

Christmas Bonuses

Aside from the 13th-month pay, employers may also distribute Christmas bonuses. Generally, this bonus is voluntarily given to the employees in time for the Christmas holiday. However, employers are not required by law to give out this bonus.

To add, modify, and assign employees in eezi’s payroll module, follow these steps:

Adding bonuses

Suppose you need to add a new bonus to your payroll module; below are the steps:

  1. Go to payroll and click Bonuses.
  2. On the upper left corner of the table, click Add Bonus.
  3. Next, add the name of the bonus and indicate whether it is taxable or not. (Note: You may mark it as a Personnel Incentive.)
  4. Once done, click “Add Bonus” to save your changes.

Editing or deleting a bonus

There are cases where you might need to modify an existing bonus. To do this, below are the steps:

  1. Go to payroll and click Bonuses.
  2. Select an item from the list and click on the corresponding ellipsis.
  3. From the selection, select Edit or Delete.
  4. Confirm the changes and see updates automatically.

Adding employees to a bonus

Suppose you already have the bonuses set up and want to add employees. In this case, the steps are as follows:

  1. Go to payroll and click Bonuses.
  2. Select the bonus where you want to add the employee.
  3. Click either View or Assign.
  4. Next, select the company and search for the employee.
  5. After selecting the employee, you would also need to set the following:
    1. Payment Scheme
    2. Prorated
    3. Payroll Cut-Off
    4. Prorated By
    5. Start and End Date
    6. Amount
  6. Click Assign Employees to save your changes.

Removing assigned employees from a bonus

Suppose a previously-added employee does not qualify for a bonus item in your payroll anymore. In this case, the following are the steps to remove:

  1. Go to payroll and click Bonuses.
  2. Select the bonus where you want to add the employee.
  3. Find the name of the employee and click on the ellipsis on the row.
  4. Click on “Remove Employee” and confirm.

The basic pay i the fixed compensation that employees receive for rendering their regular work duties. In other words, this is the amount they receive before bonuses, allowances, and overtime pay. As such, basic pay is the fundamental component of any employee’s salary, and it is the basis for determining other government-mandated contributions. In payroll, the basic pay often reflects as a fixed amount or an hourly rate.

For instance, an employee earning Php 20,000 a month would have that amount reflected as their basic pay for the month. Alternatively, if the pay period is weekly, the basic pay would be divided by four and equal to Php 5,000.

Adding basic pay adjustments

To modify the basic pay settings in eezi’s payroll module, follow these steps:

  1. Go to payroll and click Basic Pay.
  2. On the upper left-hand corner, click Add Basic Pay Adjustment.
  3. To add employees, select the company and search for the employee.
  4. After that, add the effective date and amount.

Lastly, click Update Basic Pay, and your changes will reflect automatically.

An allowance is an amount of money employers provide to employees in addition to their regular salary. Allowances often have different purposes, which include but are not limited to the following:

Allowance examples

Transportation Allowance

Transportation allowances are meant to cover the commuting costs between the employee’s residence and their workplace.

Meal Allowance

A meal allowance compensates the employees for meals on a daily basis or during business-related activities.

Clothing Allowance

Employers provide clothing allowance to help employees buy and maintain work-related clothing and uniform.

Communication Allowance

For work phone bills and internet subscriptions, an employer may provide a communication allowance to cover the costs.

Housing Allowance

An employee who needs to relocate or live close to work may also receive an allowance from their employer.

The allowances are generally a separate line from the regular salary on the payroll. However, the actual representation of the items on the payroll may differ per company. In any case, all allowances are added to the regular salary and get the gross pay for each employee.

Adding an allowance

Suppose you need to add a new allowance item to your payroll calculation. In that case, the steps are as follows:

  1. From the payroll dashboard, click Allowances.
  2. In the upper left-hand corner, click Add Allowance.
  3. Add the allowance name and indicate if it is taxable or included in the SSS computation.
  4. Click Add Allowance, and the changes will reflect.

Editing or deleting allowances

Suppose you need to make adjustments to or delete existing allowance items. To do this, below are the steps:

  1. From the payroll dashboard, click Allowances.
  2. From the list, select the one you want to modify.
  3. Click the ellipsis and select either Edit or Delete.

Adding employees to allowances

Suppose you already have the allowance items on your list. To add employees under them, follow these steps:

  1. From the payroll dashboard, click Allowances.
  2. Select the allowance where you want to add an employee.
  3. To add, select a company and search for the employee.
  4. Next, fill out the following information:
    1. Payment Scheme
    2. Payroll Cut-Off
    3. Prorated
    4. Prorated By
    5. Start Date
    6. End Date
    7. Amount
  5. Click Assign Employees and see changes reflect automatically.

Remove assigned employees

Suppose you have employees that you need to remove from a certain allowance. To do this, follow these steps:

  1. From the payroll dashboard, click Allowances.
  2. View the allowance group where the employee is listed.
  3. Find the name of the employee and click the corresponding ellipsis.
  4. Click Remove Employee and save your changes.

When doing payroll, there may be instances where you would need to make changes to the employee’s regular pay to adjust for deductions or additions. These adjustments are important as they also affect the calculation of other items, such as taxes. Typically, adjustments reflect on the pay slip as a separate item.

When does an employer make adjustments?

There are many instances where an employer adjusts an employee’s salary, which includes, but are not limited to, the following:

  • Payroll Errors: Miscalculations can sometimes happen when doing payroll, especially manually. This includes underpayments, overpayments, and other inaccuracies that would need corrections.
  • Promotion and Demotion: An employee may move across the ranks within the company, and this usually comes with adjustments in their salary. For instance, an employee starting in a new position may get an increase. Alternatively, there may also be a salary reduction for demoted employees.
  • Employment Contract Changes: There may be changes to the terms and conditions of employee contracts that could also affect their salaries. As such, adjustments are necessary to reflect these changes.
  • Salary Reviews: Some employers conduct salary reviews annually to assess employee performance. As a result of these, there may also be adjustments to their salaries. Depending on the company, these adjustments may be based on performance evaluations, internal financial situations, and market conditions.
  • Legislative Changes: External laws such as increases in minimum wages or tax rate adjustments also mean making adjustments to your employee payroll. This includes labor law changes, tax regulations, and other government-mandated rules.

Should you need to make adjustments on your payroll in eezi, below is your guide.

Adding adjustments

To initially add an adjustment, the following are the steps:

  1. From the payroll dashboard, click Adjustments.
  2. On the left-hand corner of the page, click Add Adjustment.
  3. First, select an employee and enter the corresponding employment ID.
  4. Next, add the following information:
    1. Adjustment Name
    2. Adjustment Type
    3. Amount
    4. Select between addition and deduction
    5. Payroll Cut-Off
  5. Click Add Adjustment to save the changes.

Editing or deleting adjustments

Suppose you need to modify or delete an existing adjustment. In that case, below are the steps:

  1. From the payroll dashboard, click Adjustments.
  2. Select the adjustment that you want to modify.
  3. Click the corresponding ellipsis and select Edit or Delete.
  4. Confirm your changes, and it will automatically reflect.

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