This article will give you the basic on how to register new employee to BIR, SSS, PhilHealth, and Pag-ibig.
For start-ups, it’s normal to find a professional or a sole proprietor to do all the task by himself/herself. It’s okay since they are still testing if his/her business idea will work or not. But as the company grows, it’s a wise decision to start building your team to accommodate all incoming clients and customers.
To save time and earn more, you may seek for a helping hand of a partner or hire an employee. If you don’t want to hire full time employees, you may also consider the option of outsourcing some of your work to people or company you trust.
But for this article, we will focus on what you and your employee need to do when you hire a new employee and it is to register new employee to BIR, SSS, PhilHealth, and Pag-ibig. But first, let’s answer why do you need to register new employee to BIR, SSS, PhilHealth, and Pag-ibig?
Why do you need to Register New Employee to BIR, SSS, Phil Health, and Pag-ibig?
- It’s to record the salary of employee as deductible expense of your business.
- It’s one way to show love to your employees so that they will stay longer in your company.
- It’s required by the law.
So whenever you hire new employee, the employer is responsible to register their business and update their record to the following government agencies.
Note that before you register your company in the SSS, PhilHealth, and Pag-ibig, you must have at least one (1) employee.
And the first step is to go to the Bureau of Internal Revenue (BIR).
Bureau of Internal Revenue (BIR)
The first thing you need to do is to ask if the employee has a Tax Identification Number (TIN). If the employee doesn’t have a TIN, the employee must submit BIR Form 1902 in the RDO where your company is registered.
If the employer is registered online through BIR e-Reg, the employer can issued TIN in behalf of the employee through e-TIN.
Please note that the employer should be an active withholding tax agent for compensation earners.
If the employee has a TIN already, have him submit BIR Form 1902 in the RDO where your company is registered.
But if his/her previous employer is registered in different RDO as your company, have the employee file BIR Form 1905 in the RDO where his/her employer is registered. The employer might need to add tax type of his/her business in the BIR.
After you updated the BIR, the next step is to go to Social Security System (SSS)
Social Security System (SSS)
Ask if the employee is already a member of SSS. If the employee doesn’t have SS Number, have the employee go to the SSS where your company is located and fill up E-1.
After this, the employer should register his/her business by filling up R-1, R-1A and Specimen Signature Card.
After you updated the SSS, the next step is to go to Philippine Health Insurance Corporation (PHIC)
Philippine Health Insurance Corporation (PHIC)
Ask if the employee is already a member of PhilHealth. If the employee is not a member of PhilHealth yet, you need to require him/her to register in PhilHealth using PMRF.
After this, the employer can now register his/her business by filling up ER-1, ER-2, and Philhealth Online Access Form.
After you updated the PhilHealth, the next step is to go to Home Development Mutual Fund (HDMF).
Home Development Mutual Fund (HDMF)
HDMF is also known as Pag-ibig.
Ask if the employee is already a member of Pag-ibig. If the employee doesn’t have a Pag-ibig number, the employer must require him/her to fill up and submit MDF to Pag-ibig.
You as the employer should now fill up and submit EDF to Pag-ibig.
After registration, the employer should update his record using MSRF and mark the employee as (NH) new hire.
Important Reminder
- After you register new employee to BIR, SSS, PhilHealth, and Pag-ibig, the employer needs to file and remit the taxes and contributions of employee every month.
- Deadlines varies depending on employer number and the government agency, but to be safe, just remit and submit report before 10th of the following month.
- To know the exact amount to be remitted, just look at the contribution table given by different government agencies.
- Lastly, the employer needs to update these different government agencies every time you add or remove an employee. Lots of business owners get penalized because they didn’t inform these government agencies that they don’t have employees anymore.
After reading this article, you now know the basic of how to register new employee to BIR, SSS, PhilHealth, and Pag-ibig.
Just in case you don’t have time and patience to do-it-yourself (DIY), you may check our business registration service and outsourced it to us.
If you have questions regarding tax, accounting, and business registrations, you can contact us here.
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