This component enables you to run payroll for all employees in line with Philippine legal and business requirements.

The SAP HR Payroll Philippines component must be implemented in cooperation with the project team implementing other areas of SAP Human Resources (HR), in particular Personnel Administration.

The SAP HR Payroll Philippines component is integrated with other SAP HR components such as Personnel Administration and Personnel Time Management. There are interfaces to Financial Accounting and Controlling, and you can run payroll using a combination of SAP and third-party products.

The component uses data from other areas of SAP HR to calculate statutory and non-statutory additions and deductions for your employees. SAP Payroll offers a number of standard reports used in payroll, taxation, Pag-IBIG, and social security contribution calculations.

In addition to standard payroll functions, payroll processing for the Philippines comprises the following country-specific functions:

• Taxation
• Social Security System (SSS)
• Home Development Mutual Fund (HDMF)
• PhilHealth (NHIP)
• Multiple and bonus payroll runs
• 13^th and N ^th month payments
• Deduction priorities
• Reporting

• Tax monthly remittance report
• SSS monthly and quarterly R-3 collection list
• SSS EDINet report
• HDMF M1-1 membership/remittance form
• Employer quarterly remittance report RF-1

• End-of-year processing

• BIR Certificate of Income Tax Withheld on Compensation
• Alpha List report

SAP Payroll also supports retroactive accounting. This function automatically recalculates payroll in the event of changes to master data and time data in periods for which payroll has been completed.

In the Personal Data infotype (0002), the Second name field is used for the employee's middle name in the Philippines.