Implementation of TRAIN for Everything at Work HRIS / HRMS / HCM Payroll System
Worried about the TRAIN Bill? Stop worrying! The Everything at Work HRIS / HRMS /HCM Payroll System is now compliant with the TRAIN Bill – or the Tax Reform for Acceleration and Inclusion Bill.
With TRAIN Bill now in effect starting on January 1, 2018, there are some changes to be expected when it comes to Payroll and taxes.
New Tax Table for 2018
With the new tax table, the withholding tax is expected to be lower for a majority of employees. In fact, those earning up to P20k monthly will not be subject to withholding tax on compensation. While those earning higher will also enjoy lower tax rates due to the revised tax table.
No more exemptions for dependents
With the new tax table, the tax will now be the same for those earning at the same level or same bracket, regardless of your tax exemption status – which is based on the number of dependents that you have. So if you have 4 children earning P30k monthly, the tax you will pay will be the same as a single person also earning P30k monthly. But no need to worry – as the tax you have to pay will still be much lower than what you were paying last year.
Higher tax-exempt limit for benefits
Another change with TRAIN is that benefits up to P90K per year is tax exempt. Previously, this amount was limited to P82K. Benefits include 13th month pay and bonuses that a company might give to its employees. So if you were already being taxed for benefits before, expect this tax to go down as well with the higher tax exempt limit for benefits.
Is your Payroll System capable of handling the changes brought about by the TRAIN bill? Are you worrying about deducting the wrong tax amounts from your employees? Contact us now and let the Everything at Work HRIS / HRMS / HCM Payroll System work for you.