TABLE OF CONTENTS
Pay Codes for the PHIC 1% Differential (JO-17734)
Now available! The tax-deductible pay codes for encoding the PHIC 1% differential have been added to the list of deduction pay codes.
PHIC EE 1% Differential - PTDED20000064
PHIC ER 1% Differential - ERDED00000002
These deduction pay codes are to be used on the official computations of the 1% differential posted on the PHIC statement of account (SOA) and seen on the PHIC EPRS. These are not linked to any government reports to date. Once PHIC releases further information on the required report, these pay codes will be updated accordingly.
The PHIC 1% differential pay code will appear on the payslip as a deduction (see the image below for the sample).
Frequently Asked Questions (FAQ) about the PHIC 1% Differential Pay Codes
Q: Do you have a suggested workflow to encode the differential using these deduction pay codes?
A: The amount to be processed should come from PHIC or the PHIC EPRS. We encode the amount the same way that we put in a payroll transaction (PAYTRAN), wherein we use the provided pay codes both for employee and employer shares when we input the amount. The effective date should be the start date of the payroll cut-off.
Q: Last month, I used a different deduction pay code to encode the differential. What should I do with these new pay codes that you’ve provided?
A: There should be a special payroll processing for the reversal of entries to correctly tagged them with these provided pay codes.
Here’s a sample of the reversal if you used a different pay code last month to encode the PHIC 1% differential:
Q: Is there a report that I can download after encoding this on the system for auditing purposes?
A: You can generate the payroll register report and search for the pay codes or pay code label, PHIC Employee/Employer Share 1% Differential.
Q: Can Titanium Technologies process the PHIC 1% differential for our account?
A: Yes, and this will be classified as a mini project with an initial cost of Php 50,000. It can be requested using our request form sent to helpdesk@titanium.ph, and it is subject to business assessment and senior management approval.