Your Partner in Payroll Management: Payroll Outsourcing Service for Businesses in the Philippines

Unlock the benefits of our Payroll Outsourcing Solutions and experience the simplicity of payroll processing, powered by our advanced computerized back-end system. Manage timekeeping across multiple locations effortlessly through a self-service HR portal via a browser or mobile app – ideal for Manufacturing, Construction, BPO, Retail, and Hospitality industries. Say goodbye to headaches and outsource your payroll processing today.

Addressing Common Payroll Processing Pain Points

Managing payroll processing in the Philippines poses distinct obstacles for businesses because of various regulations and diverse workforce requirements. From intricate tax calculations to stringent compliance standards, employers often encounter several pain points that can hinder efficiency and accuracy in payroll management.

  • Ins & Outs of Payroll Software and Rules

    Learning and mastering a payroll software can take time. Payroll systems often involve various calculations, tax regulations, deductions, and compliance requirements, which can be overwhelming for new users.

  • Resignation of Payroll Master

    Losing a skilled payroll administrator or manager can create significant disruptions. Their departure can leave a void in knowledge and expertise, leading to delays, errors, or inefficiencies in payroll operations.

  • Complex Tax Calculations

    The Philippines has a complex tax system, with multiple tax brackets and deductions that vary depending on an employee’s income level. Calculating taxes accurately can be challenging, especially for businesses with a large workforce.

  • Compliance with Government Regulations

    Employers must comply with various government regulations, including contributions to SSS, PhilHealth, and Pag-IBIG. Ensuring compliance with these regulations requires meticulous record-keeping and timely remittance of contributions.

  • Overtime and Holiday Pay Calculations

    Computing overtime and holiday pay for employees working beyond regular hours or during holidays involves complicated calculations based on labor laws and company policies. Managing these calculations can be time-consuming and prone to errors.

  • Manual Processes and Paperwork

    Many businesses in the Philippines still rely on manual processes and paperwork for payroll management, which can be inefficient and inaccurate. Manual data entry increases the risk of inaccuracies and delays in payroll processing.

  • Lack of Integration and Automation

    Some businesses struggle with disjointed payroll systems that lack integration with other HR functions, such as time and attendance tracking or leave management. This lack of automation can lead to data discrepancies and inefficiencies in payroll processing.

  • Employee Concerns and Disputes

    Payroll dissatisfaction and disputes affect employee morale and productivity in the workplace. Resolving these issues promptly requires effective communication and transparency between employers and employees.

Mustard Seed offers a strategic solution to these common pain points and payroll processing delays. By outsourcing us as a provider of payroll services and leveraging our expertise, your business can also free up internal resources to concentrate on driving growth and innovation.

Partner with HR Experts: Mustard Seed is More Than a Payroll Outsourcing Company

We go beyond traditional payroll outsourcing services. With mastery in HR management and HR Information Systems (HRIS), we offer comprehensive solutions tailored to the unique needs of companies across various industries. In addition to payroll outsourcing, Mustard Seed provides state-of-the-art payroll software and implementation solutions including self-service HR accessible via mobile app or browser – ensuring smooth integration into your existing systems. Our deep understanding of industry-specific challenges allows us to identify potential issues and offer proactive solutions to address them effectively. Moreover, our team of experts guides users through the intricacies of payroll software, empowering them to leverage its full potential.

Why Choose Mustard Seed for HR & Payroll Professional Services

When it comes to HR and payroll professional services in the Philippines, Mustard Seed stands out as the top choice. Our knowledge extends beyond traditional payroll services. With 25 years of industry experience, we understand the challenging aspects of payroll processing. From complex processes such as prorated allowances for monthly, daily, and hourly rates, to cross day-night schedules for industries operating 24/7, we ensure accurate compensation for employees. Moreover, our advanced system enables seamless allocation of costs across multiple departments or projects, with real-time attendance plotting from various locations. Additionally, our streamlined leave conversion process covers cash, earned, and carry-over leaves, simplifying administrative tasks for both employers and employees.

Mustard Seed Offers Localized Payroll and Proven Legal Expertise

Our comprehensive payroll services encompass adherence to the Department of Labor and Employment (DOLE) requirements, ensuring full compliance with Philippine labor laws and regulations. We meticulously handle all aspects of DOLE-mandated payroll processes, including:

  • Accurate computation of wages and benefits
  • Overtime and holiday pay computations and;
  • SSS, PhilHealth, and Pag-IBIG contributions

We guarantee timely submission of necessary reports, and meticulous record-keeping to establish transparency and accountability. Our team stays abreast of any updates or changes to DOLE requirements, ensuring the payroll operations of our clients are always in accordance with the latest legal standards. Whether it’s ensuring proper documentation for employee compensation, implementing statutory deductions, or addressing any inquiries from regulatory authorities, Mustard Seed is committed to upholding the highest standards of compliance to protect your business and employees alike.

Confidentiality Guaranteed: Payroll Outsourcing for Total Peace of Mind

At Mustard Seed, we understand the critical importance of maintaining the security and confidentiality of your payroll data. That’s why our payroll solution is not only ISO certified, meeting rigorous international standards for information security management, but also incorporates advanced encryption and access controls to safeguard your sensitive information. Additionally, when you choose to outsource your payroll processing to Mustard Seed, we go the extra mile by providing a comprehensive Non-Disclosure Agreement (NDA) to ensure that your data remains strictly confidential and protected from unauthorized access or disclosure. With Mustard Seed, your payroll data is handled with the utmost care and security, allowing you to focus on your core business operations with confidence and peace of mind.

Explore Features

With our experience spanning across HR consulting, payroll services, and legal advisory, we provide tailored guidance and support to help companies navigate the complexities of payroll management.

Payroll Processing

Encompass every aspect of managing employee compensation, from inputting attendance data to disbursing salaries accurately and on time, in compliance with local labor laws and regulations.

Bank Report Generation

We generate bank reports compatible with Philippine banking systems, facilitating seamless fund transfers and reconciliation, ensuring smooth payroll transactions while adhering to local banking regulations.

Paperless Payslip Generation

We provide detailed breakdowns of employees’ earnings, deductions, and net pay, ensuring they have clear visibility into their compensation details – accessible via the HR portal, email or mobile app.

Tax and Deduction calculations

We meticulously calculate taxes and deductions according to Philippine tax laws, taking into account variables such as income tax rates, mandatory contributions, and allowable deductions.

Standard Accounting Journal Entry Creation

Our services include creating standard accounting journal entries that adhere to Philippine Financial Reporting Standards (PFRS), accurately recording payroll expenses and liabilities in financial statements, facilitating error-free financial reporting.

Government report generation

We handle the generation of government reports to Philippine agencies such as the Social Security System (SSS), Home Development Mutual Fund (HDMF), Philippine Health Insurance Corporation (PHIC), and Bureau of Internal Revenue (BIR 1601-C), ensuring timely submission and avoiding penalties or fines.

Frequently Asked Questions

In the Philippines, basic components of payroll include gross salary, mandatory government contributions (SSS, PhilHealth, Pag-IBIG Fund), withholding taxes, and other deductions such as voluntary contributions and loan repayments.

Employers and employees are required to contribute to the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (Pag-IBIG Fund). These contributions provide employees with social security, healthcare, and housing benefits.

Taxes in Philippine payroll are calculated based on the employee's gross income and are deducted at source by the employer according to the tax brackets set by the Bureau of Internal Revenue (BIR). The Tax Calculator provided by the BIR helps in determining the appropriate tax deductions.

Yes, Mustard Seed is flexible enough to accommodate various work schedules, shifts, and attendance policies across multiple locations. It supports customizable settings for different employee groups or departments based on their specific requirements.

The Philippines does not have specific laws dictating payroll schedules. However, employers are required to pay employees at least twice a month, with intervals not exceeding 16 days apart, as per the Labor Code.

Employers have the flexibility to customize payroll schedules based on their business needs. It's essential to ensure that the chosen schedule aligns with the company's financial capacity and the expectations of employees.

Mustard Seed employs stringent security measures with an ISO Certified payroll software, and establishes access controls, and regular audits, to safeguard payroll information and ensure confidentiality. It complies with industry standards and regulations to protect sensitive employee data from unauthorized access or breaches.

Non-compliance with payroll regulations can result in penalties, fines, and legal consequences for employers. These may include penalties for late payment of taxes and contributions, as well as legal action for labor law violations.

Talk to an Expert

Navigating payroll in the Philippines can be a complex endeavor, requiring expert guidance to ensure compliance and accuracy. With numerous regulations, tax laws, and specific industry requirements, having someone with expertise is essential to avoid costly errors. Trust in our team of experts to handle the intricacies of Philippine payroll seamlessly. We bring years of experience and in-depth knowledge to the table, ensuring that your payroll processes are managed efficiently and effectively. 

Outsource your payroll processing with us so you focus on your core business activities. Contact us today for personalized advice and support every step of the way.