Philippines Year-End Payroll Activities and Tips 2020 for SAP SuccessFactors customers

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Year-end payroll activities in the Philippines requires the preparation of Alphalist and the BIR Form 2316 (Employer’s Certificate of Compensation Payment/Tax Withheld). Submission of Alphalist, which comprises Schedule 1 and Schedule 7.1 to 7.5, and BIR Form 2316, is due no later than 31 January 2021.

Here is a list of activities that you should complete in the December or January timeframe. Before running down the current list, you should make sure to download calendars and pay dates and seek approval for the upcoming year.

Philippines Year-End Payroll Activities

Here’s a list of tasks to do before the end of December:

  • Prepare consolidated BIR 2316 Form for new employees (e.g., for mid-year hires)
  • Prepare and validate Alphalist, which includes BIR Form 1604-CF
  • Look for HR Support Packs (HRSP) to see if there are changes to Statutory Forms, contributions, and calculations changes
  • Test payroll calculations and posting
  • SAP SuccessFactors Employee Central Payroll (ECP) customers should test and implement SAP HRSPs (support packs).

Not yet an ECP Customer? Read our whitepaper on rethinking, reimagining, and redesigning payroll with SAP SuccessFactors.

Once you’ve conducted all the tests, reviews, and reminders necessary, you are set to carry out some of the required year-end payroll activities.

These tasks are essential before beginning 2021 payroll in January:

  • Ensure all employees on with leave encashment completed, carry forward and new entitlement generated for 2021
  • Validate holiday calendars, pay period, pay dates, provide any required configuration changes – this is to prepare for January 2021 payroll processing

Wrapping up in January

If you have done the legwork ahead of time, that should take some pressure off to finalize your yearly payroll and kick off the next year. In January, you will need to reconcile and balance your BIR Forms and Alphalist schedules and also your year-to-date reports – and from there, you can start generating BIR 2316 forms for distribution to your employees to sign.

Staying on task with your year-end payroll activities leads to less stress for you and your payroll team.

Looking for year-end payroll activities for other countries? Here are tips for: US | Canada | Singapore | UK | Malaysia

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Useful links:

Access to www.bir.gov.ph to download the BIR required program and to validate the DAT file. DAT file should be the balance from the YTD and Alphalist.