Whenever your company employs more workers, these workers must be registered to the appropriate government agencies. The reason being, apart from keeping a proper record of payrolls and tax deductibles, every employee is entitled to receive government benefits, and they are also required to pay income taxes to the BIR if their income bracket qualifies for such.
The following government agencies are where your new hires should be listed under:
- Social Security System (SSS)
- Philhealth Insurance Corporation
- Home Development Mutual Fund (Pag-ibig)
- Bureau of Internal Revenues (BIR)
If you are a small business and it is your first time registering employees, or if you just simply need a refresher, keep reading. Here are all the steps and things you need to do in order to properly report your employees to the agencies mentioned above.
1. Updating the BIR (Bureau of Internal Revenue)
The very first government agency you should report your employee to is the BIR. The BIR is the institution where your employees will also pay their tax dues (if required). Suppose your employee does not have a Taxpayer Identification Number (TIN). In that case, you must inform your employee to file BIR Form 1902 to the Regional/District Office (RDO), where your business is registered.
If your employee already has a TIN that he or she previously registered to a Regional/ District Office that is the same as yours, your Human Resource department must submit BIR Form 2305 to update the employee’s information.
On the other hand, if your employee has a TIN from a different RDO as yours, then the employee must accomplish BIR Form 1905 in the RDO where they were originally registered.
2. Updating PhilHealth
After reporting your staff to the BIR, the next thing to do is ensure they sign up to PhilHealth form PMRF. This goes for both employees with and without PhilHealth. If the employee is already a PhilHealth member, they only need to submit to you their PhilHealth Number. Then, the Form PMRF must be submitted to the PhilHealth office where you registered your business.
As the employer, you will need to accomplish and submit Form ER2, which states the names of all your newly hired employees and their corresponding PhilHealth Number. Like the form PMRF, this form must be submitted to the PhilHealth office where your business is registered.
3. Updating SSS
If your employee has no SSS number, they must register at the same SSS office where your business is registered. For employees who already have an existing SSS number, you simply need to ask them for it. Then, you as the employer must fill out Form R1A, which will contain the complete list of all new hires and their SSS Numbers, respectively.
4. Updating Home Development Fund
All newly hired employees can be reported through the Pag-ibig online portal. If you are unable to do so online, you may add the employee the traditional way by submitting Form MCRF to your Regional or District Home Development Fund office, making sure to note them as Newly Hired (NH). It is important to remember that only SSS members can register to the Home Development Mutual Fund (Pag-ibig).
Reporting recently hired employees is not that hard at all. Just follow these steps to do so successfully and correctly. You may also seek assistance from accounting services firms to make all of these a lot easier for you. If you need help, we can guide you in this process. Give us a call for a quick 30-minute consultation so our team can begin facilitating the requirements on your behalf.
