How To Register A New Employee

An Employer's Guide to Reporting New Employees to SSS, PhilHealth, Pag-IBIG, and BIR 2022

In the Philippines, individual businesses and employers are mandated by law to annals their newly-hired employees to appropriate government agencies as role of their onboarding process. Such agencies are the Bureau of Internal Revenue (BIR), Social Security Organization (SSS), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (HDMF or more commonly known as Pag-IBIG).

This mensurate is to ensure that all employees working in the private sector tin receive their benefits properly equally provided by police force. To help yous comply with such requirements, this commodity will show you a footstep-past-step process to guide you through the unabridged employee registration process in the Philippines.

The Importance of Registering New Employees in the Philippines

The principal purpose of registering new and existing employees with such agencies is to ensure that employees pay their taxes to the regime. This also allows them to receive their government-mandated benefits, as provided nether the Philippine Labor Lawmaking .

Additionally, new employee registrations allow y'all to record your workers' bounty as your company's deductible expense.

Footstep one: Employee Registration with BIR

Earlier onboarding, new employees must provide their Taxation Identification Number (Can). For employees who do not have a Can yet, they must make full out BIR Course 1902 and submit the accomplished form to the BIR Revenue District Part (RDO) where your business is located.

Forth with their Can awarding, they must likewise submit a photocopy of the following documents:

Nascency certificate or whatsoever valid ID showcasing the applicant's consummate name, birth engagement, accost, and signature
Union certificate (for married applicants)
Birth certificates of dependents, if applicable
Company ID or document of employment, if bachelor

For new employees with existing TIN, they must submit BIR Class 2305 to the aforementioned RDO to update BIR of their new employer if their previous employer is inside the aforementioned RDO. If their previous employer is located in a different RDO, the employee must submit BIR Grade 1905 in the RDO of their former employer.

Stride ii: Registration with SSS

Commonwealth Act (RA) No. 8282 states that all employees hired past a private company are required to be members of SSS. The member'southward monthly contributions are deducted based on their actual monthly salaries, xxx% of which is deducted from the employee, and 70% is subsidized by the employer.

These contributions can be availed through monetary help when the fellow member is in demand. Some situations include sickness and hospitalization, maternity, retirement, death, or whatsoever other incident that will result in a fellow member's inability to produce his/her ain income or whatsoever other financial difficulty.

If your new employee has no existing record with the SSS, you must require them to obtain an SSS number in the same co-operative where you registered equally an employer. Employees who are existing SSS members must submit their SSS number to their employers.

Additionally, employers are required to make full upwards the SSS Form R1A which contains the listing of new employees forth with their respective SSS numbers. The form must then be submitted to the SSS role where your company is registered.

You lot may directly your new employees to obtain their SSS numbers online via the SSS website . You lot may also fulfill the SSS Grade RA1 online.

Pace 3: Registration with PhilHealth

All employees are mandated to provide monthly contributions to PhilHealth as office of the regime'south health and hospitalization subsidies in the effect that they or their dependents demand medical aid. Monthly contributions are deducted based on the employee's monthly compensation.

New employees must fill out the PhilHealth Member Registration Class (PMRF) regardless if they are existing members of PhilHealth or not. The employer must then submit it to the PhilHealth office where the visitor is registered.

Additionally, you will need to submit the ER2 Form containing a list of new employees. You must submit this within thirty days from the hiring date of the new employee.

Pace four: Registration with HDMF or Pag-IBIG

Nether RA No. 7835 , employers are required to contribute to Pag-IBIG on behalf of their employees. Pag-IBIG is a government agency that provides housing and land acquisition loans to its members with the lowest involvement rate in the market. These loans are payable for up to 30 (thirty) years.

New employees are required to register as a member of Pag-IBIG through their website or past accomplishing a Member'south Data Form. The class must be submitted manually to their called Pag-IBIG branch. New employees must be registered with SSS to be eligible for registering with Pag-IBIG.

Later gathering the data, you will need to fill out a Membership Savings Remittance Form (MSRF) and file them with the monthly contributions to your company's Pag-IBIG branch or online via the Pag-IBIG website .

Register Your Newly Hired Employees With Ease

As an employer, y'all must ensure that your newly-hired employees are properly registered with the said government agencies to comply with existing labor laws. Failure to comply may result in penalties from such agencies or revocation of business permits and/or licenses.

Employee registrations can exist hectic and time-consuming. If yous find such procedures exhaustive, it is all-time to reach out to talent and recruitment services to guide yous through the registration process seamlessly.

InCorp Philippines (Formerly Kittelson and Carpo Consulting) provides consulting and assist to local and foreign companies starting and doing business concern in the Philippines. Our primary areas of expertise are incorporation, business organisation registration, fda, clearing/visas, payroll, human resource, and recruitment.

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