After finishing all the required documents and business permits to operate, the next on the list in running a successful business is finding your dream team. One of the advantages of setting up a business here in the Philippines is the pool of workforce in which will be readily available for you. Filipinos have a 94% literacy rate and with 70% of its population is fluent in English and continues to rank 3rd – 6th largest English-speaking population in the world. Lastly, they have proven that they are one of the industrious workforces in the world, with 10 million overseas workers in every continent.
Going back, it is essential that you, as a business owner, to take good care of your staffs. And here in the Philippines, it is government-mandated to register our staffs with 4 agencies to look out for their welfare. And today, that’s what we will discuss, on how you can register new employees to BIR, SSS, Pag Ibig and Philhealth.
Register in BIR
Under the TRAIN Act, employees who earn up to Php 21,000 monthly or Php 250,000 annually are no longer subjected for personal income tax. If your employee’s salary is higher than the abo-mentioned amount, tax deductions should be made. All employees are required to have a Tax Identification Number (TIN) as per Bureau of Internal Revenue. Here’s the process:
For new employees with no TIN number
Ask them to fill out BIR form 1905 (Application for registration) and submit it to the Revenue District Office where your office is registered.
For new employees with TIN number
Ask them to fill out BIR form 2305 ( Certificate of Update of Exemption and of Employer’s and Employee’s Information) to update his information. This form is used if their previous work is within the same jurisdiction of the RDO assigned in your area.
For employees with TIN number but previously worked in a different area of jurisdiction
Ask them to fill out BIR form 1905 (Application for Registration Information Update) and submit it to the RDO where his previous employer is registered.
Register in Social Security System (SSS)
For employees who are not registered with SSS
ask them to fill out an application form online (https://www.sss.gov.ph/sss/rcsmi/main.html) to register then, proceed to the nearest SSS office together with the required documents such as Birth Certificate, 2 IDs, printed copy of the application form, and other required documents (marriage contract, birth certificate of children, etc).
For employees who are registered with SSS
Submit an updated list of SSS form R1A which has the SSS number of your new employee. This should be submitted online or in SSS branch where your company is registered.
Home Development Mutual Fund HDMF (Pag Ibig)
For employees who are not registered with Pag Ibig
Just fill out an online application form. Note that they need to be registered with SSS first.
For Employees who are already registered
Submit an updated Member’s Contribution Remittance Form which includes the Pag Ibig number of your new employee.
For employees who are not yet members
Fill out an application form online at https://eregister.philhealth.gov.ph/ or submit a Philhealth Member Registration Form (PMRF) to any Philhealth offices.
For employees who are already a member
As an employer, you need to submit an updated ER2 form together with the details of your new employee.
Registering new employees should not be overlooked. As per the Department of Labor and Employment, under PD 626 Section A, or more commonly known as Employers’ Responsibilities under the Employees’ compensation program, the employer’s failure or remit contribution shall make him liable to the SSS for the benefits that may be due and payable to his employees during the calendar year of the contingency. Furthermore, penalties varying from Php 1,000 – 10,000 and/or imprisonment for the duration of the violation or non-compliance shall be imposed. Late payment/nonpayment of contributions is also subject to a penalty of 3% monthly from the date the remittance falls due.
If time restrictions and the usual hassles hinder you to complete these registration process, fret not, just contact our consulting team and we’ll be glad to take care of this for you!