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Philippines Payroll Compliance Proof Pack: Payslip, 13th-Month, and Statutory Remittance (SSS / PhilHealth / Pag-IBIG)

Author: Phil Murphy — COO & Founding Partner
 Published: November 4, 2025
 Updated: November 4, 2025

 

TL;DR 

  • A Payroll Compliance Proof Pack is the bundle of evidence you keep each pay cycle to prove you paid correctly and on time:
     (1) itemized payslips, (2) 13th-month accrual & payout logs, and (3) statutory remittance proofs for SSS/PhilHealth/Pag-IBIG (reports + official receipts/PRNs).
  • Use a maker–checker approval before payroll runs, and archive bank confirmations + government acknowledgments after.
  • With EOR, you get the pack “out of the box”; SOS charges a flat $190/employee/month for compliant employment, payroll, filings, and document trails.

 

Who this is for 

Finance leaders, HR/People Ops, founders, and auditors who need a repeatable, audit-ready workflow for Philippine payroll—either to regularize freelancers under EOR or to tighten evidence for existing PH employees.

 

1) What’s in a Payroll Compliance Proof Pack?

A. Payslips (each cycle)

  • Employee details (name, position, period), gross, itemized earnings (basic, OT, night diff, holiday), deductions (SSS/PhilHealth/Pag-IBIG, tax, loans), net pay, payment date, employer entity.
  • Export: PDF per employee + CSV summary; keep hash/checksums or system audit logs.

B. 13th-Month (accrual + payout)

  • Monthly accrual ledger (Base/12 or company formula); running balance by employee.
  • Payout register (usually in Nov–Dec or company schedule) mapped back to accruals; variance notes for joins/exits.

C. Statutory Remittances (employer + employee shares)

  • SSS: monthly contribution report and PRN/receipt or e-payment confirmation.
  • PhilHealth: contribution summary and payment acknowledgment.
  • Pag-IBIG (HDMF): remittance return and proof of payment.
  • Bank proof (debit memo/confirmation) matching totals; reconciliation sheet tying payroll → reports → payments.

D. Approvals & Controls

  • Pre-payroll maker–checker: hours/OT/allowances preview signed-off by your approver(s).
  • Post-payroll: AM/Payroll signs, Finance validates remittances and bank confirmations; archive in DMS with immutable logs.

 

2) The monthly workflow (zero-drama version)

Day 0–2 — Prepare

  • Close timesheets; collect allowances; update new hires/exits; validate salary changes.

Day 3 — Pre-payroll approval (maker–checker)

  • Approver signs off on gross & statutory projections; exceptions documented.

Day 4 — Run payroll

  • Generate payslips; post provisional payroll journal; spot-check edge cases (OT/holidays).

Day 5 — Pay & remit

  • Disburse net pay; submit SSS/PhilHealth/Pag-IBIG; record PRNs/receipts.

Day 6–7 — Close & archive

  • Post final journal; archive payslips, 13th-month ledger, remittance proofs, bank confirmation, reconciliation worksheet; tag period & approvers.

 

3) Proof Pack contents (checklist you can print)

  • ✅ Payslips (PDF per employee)
  • ✅ Payroll summary (CSV)
  • ✅ 13th-month accrual ledger (YTD) + payout register
  • ✅ SSS contribution report + PRN/official receipt
  • ✅ PhilHealth contribution summary + payment acknowledgment
  • ✅ Pag-IBIG remittance return + payment receipt
  • ✅ Bank debit/confirmation matching totals
  • ✅ Reconciliation sheet (payroll → reports → payments)
  • ✅ Pre-payroll approval (maker–checker) + Post-payroll sign-off
  • ✅ DMS archive link with immutable logs

 

4) Comparison — “No Proof” vs Compliance Proof Pack

Factor No/Lite Evidence Compliance Proof Pack (recommended)
Payslip detail Basic totals only Full itemization (earnings/deductions), per-employee PDF
13th-month Ad hoc manual calc Accrual ledger + payout register, variance notes
Statutory remittances Spreadsheets only Official PRN/receipts + bank proofs and monthly summaries
Approvals Verbal/DMs Maker–checker pre-payroll; documented post-payroll sign-off
Audit trail Scattered folders DMS with immutable logs, period tags, access controls
Close speed Slow firefights Predictable D+1 to D+2 recon & filing
Risk of penalties/disputes High Low — complete, consistent, provable

5) How EOR simplifies this (what SOS handles at $190/employee/month)

  • Employment & payroll engine (payslips, journals, net pay disbursement).
  • Statutory filings (SSS/PhilHealth/Pag-IBIG) and payment confirmations.
  • 13th-month accrual tracking and payout evidence.
  • Approval workflow (maker–checker), attendance, and DMS archiving with audit logs.
  • Quarterly compliance review: gaps, exceptions, and remediation.

 

6) FAQ — Payroll Compliance Proof Pack (PH)

What exactly is a PRN and why keep it?
 It’s a Payment Reference Number/proof linking your remittance to the government record—retain it with the month’s pack.

Is 13th-month mandatory?
 Yes—structure accruals monthly and show the payout register when released.

How long should we keep records?
 Common practice is at least 5 years; many keep 7 for audit comfort.

We pay twice a month. Do we remit monthly or per cut-off?
 Most remittances are monthly—keep your cut-off payslips and one monthly remittance pack that ties everything together.

Can we export a single audit bundle for due diligence?
 Yes—create a zip per month or a QBR pack compiling 3–6 months with a summary reconciliation.

 

Related resources 

 

Credible sources

  • DOLE — 13th-month overview and holiday/pay rules
  • SSS — employer contribution & remittance guidance; PRN usage
  • PhilHealth — employer premium contributions & payment flow
  • Pag-IBIG (HDMF) — employer remittance and proofs

 

Request for the Payroll Compliance Proof Pack templates (free)

  • Payslip template (PDF + CSV)
  • 13th-month accrual + payout register (Excel)
  • SSS/PhilHealth/Pag-IBIG remittance cover sheets (fill-in)
     Talk to SOS → info@smartoutsourcingsolution.com

 

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