Payroll Orientation Part 1

Summary

The video script covers payroll orientation, distinguishing between wage and salary earnings, and explaining government and digital deductions in payroll processing. It outlines EMS Group's compensation policy, detailing allowances, benefits, and the computation of pay based on specific parameters. The script also discusses different types of employees, from blue-collar workers to white-collar employees, and how their pay is calculated, including daily rates, monthly pay, and the process of converting monthly to daily rates and vice versa. Additionally, it touches on overtime computation and the importance of accurate time records for payroll accuracy.

Takeaways

• 😀 The orientation aims to distinguish between wage and salary earnings and to explain payroll deductions and pay computation.
• 📅 Payroll is processed bi-monthly on the 10th and 25th in the EMS group of companies, differing from a typical monthly schedule.
• 💰 Middle allowance has increased from 27 to 29 pesos, and there are no mail allowances for those working from home.
• 🏢 SSS contributions are mandatory deductions for employees, reflecting government regulations.
• 🎉 Employees are entitled to five days of vacation leave and five days of incentive sick leave per year, depending on the company policy.
• 👷 Wages are compensations for blue-collar jobs, typically paid by the day or week, such as operators.
• 👔 Salaries are for white-collar jobs like clerks, technicians, and engineers, paid every 15 days in the EMS group.
• 📊 Daily rate employees are entitled to a minimum basic daily pay rate based on their region of assignment.
• 📋 Monthly paid employees receive compensation for every day of the month, including holidays, using the 'sandwich method'.
• 📈 The daily minimum wage rates vary by region, with the National Capital Region (NCR) having rates from 500 to 537.
• 🕒 The Daily Time Record (DTR) is crucial for payroll computation; inaccuracies in DTR can lead to incorrect pay.
• 💡 The script also covers how to convert monthly pay to a daily rate using a standard divisor of 313 days, and vice versa.

Q & A

What are the objectives of the payroll orientation mentioned in the script?

The objectives are to identify the differences between wage and salary earnings, enumerate government and digital deductions as part of payroll processing, understand the computation of pay based on specific parameters, and to explain the company's policy on compensation.

How often is the basic salary paid in the EMS group of companies?

The basic salary is paid on the 10th and 25th of each month.

What is the difference between mail allowance for those working from home and those working in the company?

There will be no mail allowance for employees working from home, but those working in the company will receive a mail allowance.

What are the benefits included in the script for employees of the EMS group of companies?

The benefits include the middle allowance, SSS premiums, five days of certification week for every year of service, and five days of incentive sick leave for every year of service.

What is the distinction between wages and salary as per the script?

Wages are compensation for skilled or unskilled manual labor, typically paid by the day or week, and are associated with blue-collar jobs. Salary is paid every 15 days and is associated with white-collar jobs such as clerks, technicians, group leaders, and engineers.

How is the daily minimum wage rate determined in the Philippines?

The daily minimum wage rate is determined based on the region where the employee is assigned, with different rates for NCR (National Capital Region), provincial areas, and cities.

What is the significance of the Daily Time Record (DTR) in payroll processing?

The DTR reflects the attendance record of an employee and is essential for the computation needed for payroll. If the DTR is incorrect, the pay can also be incorrect.

How is the gross pay calculated?

Gross pay is the total amount of an employee's earnings before any deductions are made.

What is the standard method for converting a monthly rate to a daily rate?

To convert a monthly rate to a daily rate, multiply the monthly rate by 12 months and then divide by 313, which is the standard number of days an employee works in a year.

How is the hourly rate determined from the daily rate?

The hourly rate is determined by dividing the daily rate by the standard working hours, which is typically 8 hours in the Philippines.

What is the procedure for computing overtime pay?

Overtime pay should be authorized by a manager or supervisor and should be filed within 24 hours. The overtime pay is calculated by multiplying the hourly rate by 125% for regular overtime.