F0097

1 _________________ F0097
3 __________________
Payroll System
___________________ Types of Payroll
___________________
___________________ ___________________
 A payroll involves the computation and
payment of money to an employee by an
___________________  Fixed monthly ___________________
 Basic pay for the period minus deductions for
employer for the services the former has
rendered within an agreed period of time.
___________________ the period
___________________
 Hourly
 Employer’s functions: ___________________  Hours worked multiplied by rate per hour
minus deductions
___________________
 Itemize any deductions from the gross pay of
each employee.
___________________  Piece-work basis
___________________
Submit pertinent remittances and reports to
___________________ ___________________
  Number of pieces produced multiplied by rate
government agencies concerned regarding the per piece minus deductions
amounts deducted from employee’s pay

___________________ ___________________
___________________ ___________________
___________________ ___________________
Payroll System * Property of STI
Page 1 of 5
___________________ Payroll System * Property of STI
Page 3 of 5
___________________

F0097
2 _________________ F0097
4 __________________
Payroll System
___________________ Payroll Process
___________________
___________________ ___________________
 Objectives for maintaining an efficient payroll
system:
___________________  Items that are normally deducted from an
employee’s gross pay:
___________________
 Maintain a favorable employee-employer
___________________  Withholding Taxes – the amount of tax to be
___________________
relationship
• through accurate and honest computation of
salaries and wages
___________________ deducted is dictated by the Bureau of Internal
Revenue (BIR) ___________________
• through the regular payment of wages to
employees
___________________  SSS Contributions – the amount of deduction is
dictated by the SSS ___________________
 Provide the data for accurate labor cost
accounting
• through accurate payroll computation
___________________  Pag-ibig Contributions – the amount of
deduction is dictated by the Home
___________________
• through departmentalized arrangement of the
payroll list to facilitate subsequent distribution of
labor cost of the appropriate department or cost
center
___________________ Development Mutual Fund (HDMF), otherwise
known as Pag-ibig ___________________
___________________  Other deductions – these deductions result
from fixed dues charged to the employee ___________________
___________________ ___________________
Payroll System * Property of STI
Page 2 of 5
___________________ Payroll System * Property of STI
Page 4 of 5
___________________
 F0097
5 _________________
Payroll Process
___________________
___________________
___________________
Source
records
payroll data Payroll
processing
labor
distribution Cost
accounting
___________________
payroll list
pay slip
remittance
reports
labor
distribution
reports
___________________
Bank Employee
Government
and other
entities
Management ___________________
___________________
___________________
___________________
___________________
Payroll System * Property of STI
Page 5 of 5
___________________