Payroll

Payroll

Running Payroll

1. Go to HR > Payroll.
2. Click Compute Payroll.
3. Select the pay period (date range).
4. The system calculates: base pay, overtime, allowances, and deductions.
5. Review each employee's payslip.
6. Click Approve to finalize.

Pay Types

Employees can be set to different pay types:

• Hourly — paid based on hours worked multiplied by hourly rate.
• Monthly (with absence deduction) — base pay calculated from daily rate times days worked. Absent days are deducted automatically from attendance records.
• Monthly (without absence deduction) — salary is evenly split across pay periods regardless of attendance.

Overtime

Employees can file overtime requests through the OT Filing system:

1. Employee files an OT request specifying date, start/end time, and reason.
2. A manager or supervisor approves or rejects the request via HR > Approvals.
3. Approved OT is automatically included in the next payroll computation.

Allowances

Set up recurring allowances for employees (meal, transportation, communication, etc.) via HR > Allowances. Allowances are automatically included in payroll and split across pay periods. Allowances can be marked as taxable or de minimis (tax-exempt).

Late & Undertime Penalties

The system automatically calculates deductions for late arrivals and early departures based on attendance records. These deductions appear as a separate line item in the payroll detail.

Night Shift Differential (NSD)

Employees working between 10 PM and 6 AM receive a 10% premium on their hourly rate, per Philippine labor law. Certain roles can be exempted from NSD in the role settings.

Philippine Government Deductions

The system automatically computes:

• SSS — Social Security System contributions (employee and employer share)
• PhilHealth — Health insurance contributions
• Pag-IBIG — Home Development Mutual Fund contributions
• Withholding Tax — Based on BIR tax tables, annualized and prorated per pay period

Government deductions are prorated based on the number of pay periods (cutoffs) configured for the store. They are skipped entirely when gross pay is zero or negative.

13th Month Pay

13th month pay is accrued every cutoff at (basic pay + extra day pay) / 12. The register below is where the bookkeeper gets the figures.

Choosing how each employee gets 13th month

Open the employee's profile (Staff → Edit) or HR → Wages and set 13th Month Pay under Compensation & Payroll:

• Accrue, pay later (default) — 1/12 of basic + extra-day pay is set aside every cutoff and shows on the 13th Month register until you record a release. The payslip shows it as an accrual, not as pay.
• Include in every payslip — the same 1/12 is added to each payslip as a 13th Month Pay earnings line, raising gross and net pay for that cutoff. Nothing accrues, so the employee has no balance on the register; the register's Paid in payroll column shows what went out this way. It is booked to 6040 13th Month Pay Expense and is not added to the withholding tax base.
• Not eligible — no 13th month is computed for this employee.

Payroll runs are snapshots: the setting applies to runs generated after the change. To apply it to a draft run, recompute the run.

The 13th Month register

Go to HR → Payroll and click 13th Month. Pick a date range (the current year is preselected; the year buttons jump to a calendar year) and, if you like, one employee. The register lists every employee who appeared on an approved payroll whose period ended inside the range:

• Cutoffs — how many approved payroll periods they were paid on in the range, and the first and last period.
• Basis — the basic pay plus extra-day pay the formula ran on. Overtime, holiday, rest day, night differential and allowances are not part of the 13th month basis.
• Accrued — basis ÷ 12, summed over the cutoffs.
• In GL — the part of the accrual that was posted to the ledger. Payroll runs journaled before 18 Oct 2026 never carried 13th month lines, so their accrual shows under Not in GL instead.
• Released and Balance — what has been paid out through a release whose coverage period sits inside the range, and what is still owed.

Export CSV gives the bookkeeper one row per employee; Export per cutoff gives one row per payroll period per employee, with the basic pay, extra-day pay, accrual and whether that run's accrual reached the ledger. Only owners and roles with View payroll or Manage payroll can open the register.

How it reaches the books

Every payroll accrual journal entry now includes DR 6040 13th Month Pay Expense / CR 2085 13th Month Pay Payable for the run's total accrual, so the expense lands in the month it was earned and the liability builds up on the balance sheet. Reversing a payroll run voids that entry, lines included. Both accounts are created automatically the first time they are needed.

Releasing the 13th month

1. Set the register's range to the period you are paying for (usually January to December) and click Record release.
2. Confirm the release date, the coverage period, and the cash or bank account you paid from. Each employee is pre-filled with their balance; untick anyone you are not paying yet, or change an amount (a pro-rated amount for a resigned employee, or a top-up above the formula).
3. Save. The release gets a reference like 13M-2026-0001 and posts one journal entry: debit 2085 for the part that was accrued in the ledger, debit 6040 for any part that was not (runs journaled before the feature, or a top-up), credit the account you paid from.

Releases are listed under the register with their reference, journal entry and per-employee amounts. A release can be voided if it was recorded by mistake; this voids its journal entry and puts the balance back. Employees see the amount released to them on Workplace → My Pay under the 13th Month tile. Releasing needs Manage payroll or an owner account, and the release date must fall in an open accounting period.

Exporting

Export payroll to CSV for bank file generation or record keeping.

Partial Salary Payments

Sometimes you can only release part of someone's pay today — a cash-flow gap, an employee who asked for an advance on payday, or a balance you want to hold until a document is turned in. An approved payroll lets you pay any employee in more than one release.

Releasing part of a salary

1. Open the approved payroll (HR → Payroll, then the run). The accrual journal entry must already exist.
2. Tick the employees you are paying. A Pay box appears in their Payment column, pre-filled with the full balance still owed.
3. For anyone getting a partial release, type the amount you are paying now. It must be more than zero and no more than the balance. Leave the others at their full balance.
4. Pick the cash or bank account and the payment date in the toolbar, then click Mark as Paid.

One disbursement journal entry is posted for the exact total released (Wages Payable debited, your cash or bank account credited), so Wages Payable always equals what you still owe employees.

What you see afterwards

• Employees paid in full show Paid. Employees with a balance show Partial with the amount paid and the balance due.
• The payment progress bar at the top follows amounts, not head-count, and lists how many employees are fully paid, partially paid and unpaid.
• Click a Partial or Paid badge to see every release for that employee — date, amount, account, and the balance after each one. The same history is in the expanded row.
• The bank sheet lists only employees with a balance due, for the balance amount. The CSV export adds Amount Paid, Balance Due and Payment Status columns.
• If payment notifications are on, a partial release tells the employee the amount released and the balance still due; the final release says the salary is fully paid.

Paying the balance

Come back to the same payroll, tick the Partial employees (the Pay box defaults to the balance), and Mark as Paid again. You can split a salary into as many releases as you need. Reversing the payroll voids every disbursement entry and clears the payment history, as before.

Cash Advances

Advances you release to employees are deducted automatically each cutoff as an Advance line. See Employee Cash Advances & Payroll Repayment.

Performance Bonus (Sales Commissions)

If the store runs a staff sales commission program, computing a run adds every approved, settled, unpaid commission to the employee's item as a Performance Bonus — a column on the run, a line on the payslip and in the CSV export, inside gross pay (not part of basic, so not in the 13th-month base). Recomputing a draft picks the commissions up again; voiding a draft or reversing an approved run returns them to unpaid for the next run; approving the run marks them paid. Commissions approved after the run was computed are paid on the next cutoff.

Employee review before approval

With Let employees review their payslip before approval switched on (HR Settings → Payroll Settings), a draft run gets a Publish for review step. Employees confirm or dispute their own preliminary payslip on My Workplace → Pay; disputes are flagged on the run and counted in the Approve confirmation but never block it. See Payroll Review.

Filing BIR 1601-C

The withholding tax on each payslip adds up to the monthly BIR Form 1601-C. Open HR → Payroll → BIR 1601-C to see the return for any month already filled in from your approved payroll runs, with the due date and a printable worksheet. See BIR 1601-C: Filing Your Monthly Withholding Tax on Compensation.