Special cases

Some companies have an arrangement the usual rules don't cover: contributions that aren't deducted, a minimum wage exemption, or an exemption from the maternity salary differential. This guide shows where each one is recorded and what changes in the payroll.

Before you start

• Only an Owner / Management user (or your accounting firm) can change these settings.
• Each of them needs a written basis: a client's written decision, or a certificate from the government. Keep a copy before you turn anything on.

Contributions not deducted

Employers must register their employees and deduct and remit SSS, PhilHealth and Pag-IBIG contributions. Not doing so can lead to penalties and leaves employees without benefits. Use this only when the client has decided so in writing, or for employees the law doesn't cover.

For the whole company:

1. Open Company setup and scroll to Contributions not deducted.
2. Turn on Don't deduct SSS for everyone in the company, or the PhilHealth or Pag-IBIG switch.
3. Type the Reason, for example the date of the client's written instruction. It is kept in the activity log.
4. Click Save.

For one employee: open the employee's page, find the SSS, PhilHealth and Pag-IBIG card and use the same switches there.

What changes: neither the employee's nor the employer's share is computed or reported, and taxable pay isn't lowered by it. Each payroll flags these employees for the approver, and that agency's number isn't required to submit the payroll.

Minimum wage exemptions

Sahora never assumes an exemption. Without a certificate on file, the full minimum wage of the work place applies.

1. In Company setup, scroll to Minimum wage exemptions.
2. Choose the Basis: a small retail or service establishment, a distressed establishment or one affected by a calamity (all from the RTWPB), or a Barangay Micro Business Enterprise (BMBE).
3. For an RTWPB exemption, choose the Wage order exempted.
4. Type the Certificate number, Issued on, Covers from and Covers until dates, and Notes (optional).
5. For an RTWPB exemption, leave Also exempts from the maternity salary differential for the same period ticked if the certificate covers it.
6. Click Add certificate.

What changes:

• RTWPB: while the certificate covers the days, pay is checked against the rate in force before that wage order.
• BMBE: the minimum wage check is skipped.
• Whether an employee is a minimum wage earner for tax still follows the wage order in force.

To take a certificate off, click Remove on its line. See also Employees paid below the minimum wage.

Maternity salary differential exemption

The company advances the SSS maternity benefit and pays the salary differential (full pay for the leave days less the SSS benefit) unless DOLE has exempted it.

1. In Company setup, scroll to Maternity salary differential.
2. Turn on Exempt from the maternity salary differential (RA 11210 Sec. 5).
3. Choose the Basis of the exemption.
4. Type the DOLE certificate number and the Date of the certificate.
5. Set Valid until, or leave it blank to use the validity period the screen shows.
6. Click Save.

The SSS benefit is still advanced, but no differential is paid until the certificate's last valid day. An RTWPB certificate that covers the differential (above) has the same effect without this switch.

What can go wrong

• "Give the reason contributions are not deducted (at least 5 characters)." Type a fuller reason.
• "Only the company owner (or the firm) can change this." Ask your Owner / Management user.

Good to know

• Maternity benefits themselves are recorded on each employee's page.
• Changes to these settings are recorded in the activity log.