Home Development Mutual Fund (HDMF) 

Description

In compliance with Philippine legal requirements, Release 4.5A of the Payroll Accounting application for the Philippines enables you to process:

All HDMF calculations are based on the employee's total earnings before tax. The infotype HDMF Philippines (0423) stores data such as the employee's HDMF number, the higher and lower voluntary brackets for employer and employee contributions, and whether the employee is exempt from contributing to HDMF. The basic earnings thresholds, statutory basis, and contribution percentage rates used to calculate employer and employee contributions are configured as default values in Customizing.

The frequency of contributions defines whether employees assigned to a specific payroll area contribute to HDMF in the last payroll period of the calendar month only or in every payroll run. The settings for each payroll area are made in Customizing and processed in the relevant payroll run.

The HDMF remittance report is run every calendar month and lists employer and employee contributions to HDMF. The format of the HDMF remittance form complies with the format prescribed by the HDMF association. The report can be found in the payroll program for the Philippines under the menu path Per payroll period -> Lists/statistics.

Change system parameters in customizing

To set up the default values for the infotype HDMF Philippines (feature P0423) and to define the frequency of contributions (feature PHPBE), refer to the following steps in Customizing:

HDMF Infotype Default Values
HDMF Contributions Frequency