How to Compute Overtime Pay?

When an employee is required to work beyond the normal 8 hours, they are entitled to receive Overtime Pay. (Source: DOLE)

The Overtime pay rates depend upon the day the work is performed, based on the government guidelines it is as follows:

r/payrollhero - How to Compute Overtime Pay?

Let’s say that your employee’s hourly rate is Php 57.00, here’s how to compute for their overtime pay:

r/payrollhero - How to Compute Overtime Pay?

Are you seeking a more efficient way to handle your overtime pay? 🚀 Take the first step by signing up here:

How to Compute the Philippine Taxes?

What is TRAIN LAW?

Tax Reform for Acceleration and Inclusion

The goal of the Comprehensive Tax Reform Program (CTRP) or TRAIN is to create a simpler, fair, and more efficient system, as per the constitution, where the rich will have a bigger contribution and the poor will benefit more from the government’s programs and services.

Here’s the essential information you require to calculate your income tax! 📊💸

– How much is your SSS/Philhealth and PagIbig contributions
– Allowances and other benefits if any
– Copy of the BIR Tax table

Here’s a simple way to calculate employee taxes for the month! 📆

Basic Salary: Php 40,000.00
Overtime Pay: Php 5,000.00
Late deduction: Php 200.00
SSS Contribution: Php 1,350
Philhealth Contribution: Php 1,000
Pag-Ibig Contribution: Php 100.00

Taxable income

= Basic Salary + Overtime Pay + Holiday Pay + Night Differential – Tardiness – Absences – SSS/Philhealth/PagIbig deductions

According to the information provided, your Taxable Income will amount to Php 42,350

Php 42,350 = 40,000 + 5000 – 200 – 1350 – 1000 -100

Your tax for the month is Php 3,678.33 by simply checking the table:

r/payrollhero - How to Compute your BIR Taxes?

BIR Computation:

= 42,350 x 12 pay periods
= 508,200 – 400,000
= 108,200 x 20%
= 21,640 + 22,500
= 44,140 / 12 pay periods
= 3678.333333333333333 or 3678.33

Looking to make your tax calculations a breeze? 🚀 Feel free to sign up right here –

Making Work Life Easier: How PayrollHero Helps Different Businesses with All-in-One Features

If you’re tired of juggling a bunch of tools to manage your team, PayrollHero might just be your new best friend. This all-in-one platform covers everything from timekeeping and scheduling to attendance, HR stuff, payroll, and even leave management. Let’s see how it can make life easier for different types of businesses:

  • Retail Shops:
    • Keep track of everyone’s hours easily, especially with different shifts.
    • Make sure you’ve got the right number of staff during busy times.
    • No more attendance headaches – it’s all sorted.
  • Hotels and Restaurants:
    • Handle those crazy schedules in the hospitality biz.
    • Keep tabs on who’s there when they should be.
    • Payroll and leave management that just makes sense for your industry.
  • Factories and Manufacturers:
    • Keep production running smoothly with accurate timekeeping.
    • Manage your workforce without breaking a sweat.
    • Easy peasy payroll and leave management for your hardworking team.
  • Healthcare Heroes:
    • Make sure you’ve got enough staff on hand when it matters most.
    • Stay compliant with all those healthcare rules.
    • Payroll and leave? Covered. So you can focus on taking care of others.
  • Tech Wizards:
    • Flexibility for your flexible workforce, including remote work.
    • All the HR info you need for your tech-savvy team.
    • Payroll and leave management that fits your agile style.
  • Schools and Colleges:
    • Keep track of who’s in class or on duty.
    • Organize classes and events without the headache.
    • Payroll and leave management that lets you focus on education, not paperwork.

No more piecing together different tools for every little thing. PayrollHero wraps it all up in one neat package, making work life simpler and more organized for everyone. So, whatever your business, give PayrollHero a spin and see how it can make your day-to-day a whole lot smoother!

Wanna see how PayrollHero works? Book a PayrollHero Demo!

Also, check us out on Facebook –

What Is Annualized Witholding Tax (Alphalist)?

The Alphalist Report involves the adjustment of tax withheld to align it with the actual tax owed on an employee’s income throughout the fiscal year. This process is carried out by companies to guarantee that both employees and the company fulfill their tax obligations accurately to the Bureau of Internal Revenue (BIR).

This report also contains information on taxes deducted by employers from their employees’ wages. It also includes the computations for tax refund and tax payable at the end of the year.

  • Tax Payable: If total tax due > total tax collected for the year
  • Tax Refund: If total tax due < total tax collected for the year
  • Break even: If total tax due = total tax collected for the year

Important dates to remember:

By 31 January, employers must provide their employees with a copy of the BIR- 2316 form.

On or before 28 February, the BIR-2316 form must be signed by all employees and the employer. The form and any other details must then be submitted to the Bureau of Internal Revenue (BIR).

What is the BIR-2316 Form?

The BIR-2316 form, commonly referred to as the Certificate of Compensation Payment/Tax Withheld, serves as an official record detailing an employee’s gross income and the corresponding tax withheld by the employer over the fiscal year. It is mandatory for all companies that employed individuals in the preceding year to submit the 2316 form to the Bureau of Internal Revenue (BIR). This form plays a crucial role in enabling the BIR to oversee the company’s adherence to tax regulations.

Why am I receiving large deductions/refunds during the year-end?

Tax deductions are generally determined by calculating the gross taxable salary using the BIR’s tax table. It’s important to note that different tax tables are applicable based on the pay cycle adopted by a company. Additionally, during the tax annualization period, the annual tax table serves as another reference guide.

While both methods will result in identical tax calculations, various factors below may impact these computations:

  • An Employee hired in the middle of the year
  • Adjustments made in the middle of the year
  • Frequent absences or prolonged leaves
  • Salary deductions

Hence, adjustments can be anticipated when taking these factors into account. Typically, a refund is applicable under the following circumstances:

• Fails to meet the PHP 250,000.00 cap
• Receives a significant amount of taxable income in the middle of the year
• Is a newly hired employee joining in the middle of the year

On the other hand, additional deductions are probable in the following situations:

• The employee’s taxable income bracket changes for the year
• The employee has a previous employer and submits the 2316 form to the new employer for consolidation.

How to compute Annualized Withholding Tax?

Before computing the annualized tax, employers must:

• Maintain comprehensive records of employees’ earnings throughout the year to ensure accurate calculations.
• Identify taxable and non-taxable income.
• Understand the calculation process for gross taxable income.

Once the annual gross taxable income is computed, refer to the annual tax table below:

Example: If the gross taxable income tax for the entire year is PHP 545,000, the tax due will be PHP 51,500.

(As 545,000 falls within the range of 400,000 to 800,000, we will refer to the third row in the Annual Tax Table.)

Annual Tax Due:

= 545,000 – 400,000
= 145,000 x 20%
= 29,000 + 22,500
= 51,500

Lastly, deduct the Annual Tax Due from the total Tax Withheld throughout the year. This will determine whether a refund or remaining is due.

Performing tax annualization is crucial for ensuring the accuracy of your employees’ payroll, as mandated by the Bureau of Internal Revenue (BIR). Additionally, given that employers in the Philippines as Withholding Agents, it is essential to guarantee full compliance with tax laws and labor regulations within your company.

Please see details on : How to Generate the BIR Alphalist on PayrollHero? or feel free to get in touch with us by signing up here –

Unlocking Possibilities: Experience Our 30-Day Free Trial, No Strings Attached!

Are you ready to embark on a journey of discovery? Sign up on PayrollHero’s 30-day free trial – no credit card required! We believe in the power of our product, and we want you to experience it firsthand, risk-free.

Why a 30-Day Free Trial?

At PayrollHero, we understand that trying out a new service can be a big decision. That’s why we’re offering a generous 30-day free trial – an entire month to explore the features, benefits, and possibilities that our product brings to the table.

No Credit Card Needed

We’re committed to making your trial as hassle-free as possible. Unlike many other trials that require credit card information upfront, we believe in trust and transparency. That’s why you won’t need to provide any payment details to access our 30-day free trial. Simply sign up, dive in, and explore without worrying about any unexpected charges.

Risk-Free Experience

We’re so convinced that you’ll love our product that we’re giving you the freedom to cancel at any time within the 30 days. No questions asked. No hidden fees. If, for any reason, you decide that our service isn’t the right fit for you, cancel before the trial period by emailing us at, and you won’t be billed.

What Can You Expect?

During your 30-day trial, you’ll have full access to all the features and benefits that our product has to offer. Our user-friendly interface and robust functionalities are designed to make your experience enjoyable and productive.

Ready to Get Started?

To kick off your 30-day free trial, simply visit our website and sign up. It’s that easy! We’re confident that by the end of the trial period, you’ll be as excited about our product as we are.

Final Thoughts

At PayrollHero, we believe in the transformative power of our product. We’re confident that once you’ve experienced it firsthand, you’ll see the value it brings to your business. So, why wait? Take advantage of PayrollHero’s 30-day free trial today and unlock a world of possibilities – with no strings attached.

Ready to explore? Feel free to sign up here –

After getting started, you will be contacted by email so our team can learn about your business’s direct needs, no strings attached, no commitment.

How PayrollHero Started

Wondering how PayrollHero started? It was way waaaay back in 2009 really 😉
Mike and Steve have been business partners since 2000, for 24 years!

r/payrollhero - How PayrollHero Started

Stephen Jagger (left) and Mike Stephenson (right)

Mike is half Filipino, his mother moved to Canada and met Mike’s dad who was originally from the UK.

Steve and Mike ran a company called Outsourcing Things Done and need something to pay and track their staff. They couldn’t find anything in the Philippines so they decided to create their own with the help of Filipino accountants and developers hired within their small BPO company in 2009.

They showed it to a friend who really wanted to use it for themselves and thus PayrollHero was founded!

Here’s a quick video from Steve on the history behind PayrollHero ~

🎉 Celebrating 10 Years of PayrollHero: Your Data’s Security is Our Top Priority! 🛡

Exciting news – PayrollHero just hit the big 10! 🎉🥳 We’ve been on this journey together, and we want to take a moment to celebrate and reassure you about your data’s security.

🔐 A Decade Strong – Zero Security Breaches:

Guess what? We’ve had your back for 10 years, and not a single security breach! Your data is as safe as ever.

💪 We’re Always Improving:

We’ve been investing in top-notch tech, regular security checks, and staying ahead of the game to keep your info locked down. We take security seriously, and we’re not slowing down.

🙏 Thanks for Trusting Us:

Big shoutout to you – our awesome community! Whether you’re a long-timer or a newbie, your trust keeps us going. We couldn’t have hit this milestone without you.

🚀 What’s Next? Share Your PayrollHero Story:

We want to hear from YOU! Drop a comment and tell us about your PayrollHero journey. What features do you love? How has it helped you? We’re all ears.

Here’s to a decade of success, and many more to come!