[Blueboard] Changes in Payroll Processing of Newly Hired Employees

cao at admu.edu.ph cao at admu.edu.ph
Mon Apr 2 08:14:15 PHT 2007


pls. post. thank you.


March 23, 2007

TO	:	Unit and Department Heads

FROM	:	Central Accounting Office and Personnel Office

SUBJECT:	Changes in Payroll Processing of Newly Hired Employees
_______________________________________________________________________________

The procedure that is currently in place requires all newly hired employees to 
submit ALL of the following documents before their Payroll Authorization 
Notice (PAN) is prepared by the Personnel Office:

a)  Personnel Data Sheet
b)  Completed BIR form 2305  or BIR form 1902
c)  SSS Number
d)  Completed Philhealth M1 A form
e)  Completed Pag-IBIG Member’s Data Form M1-2
f)  Transcript of records 

Salary payments of newly hired employees are not processed nor released until 
the above required documents have been submitted.  

The above procedure has given rise to a number of concerns.  When the required 
documents are not received before the payroll cutoff time, payroll payments 
are not processed resulting in late deduction and remittance of SSS, Pag-IBIG 
and Phil Health Premiums.  This situation, which happens quite often, has 
adverse consequences for both the employee and the University.  The employee, 
even if employed does not receive Philhealth, SSS and Pag-IBIG coverage while 
the University gets penalized and acquires a delinquent record for late 
remittances.  To correct the above situation and after consultations with your 
unit/department’s representative last March 2, 2007, please be informed of the 
following guidelines which will be applicable for faculty members only and ill 
be implemented on April 1, 2007, the first day of the FY 2007-2008:

1.  In principle, all newly hired employee should submit ALL required 
documents before his/her first day of employment.  For Loyola Schools part-
time faculty, the Assistants to the Dean should forward the required documents 
to the Office Vice-President for Loyola Schools who will in turn forward these 
to the Personnel Office before the first day of employment.  The Assistants to 
the Dean should also indicate the most probable load of the faculty member.  

2.  If the employee is unable to submit all of the above listed required 
documents prior to hiring,  he must at least submit the minimum document 
requirements (items a to e listed above) before the first day of employment.
 
3.  If the employee submits ALL required documents, the Personnel Office will 
prepare the employee’s PAN for immediate processing of the CAO, thus his/her 
salary payment will be processed and released without further delay.  If the 
employee submits only the minimum document requirements, his PAN will be 
prepared by Personnel and forwarded to CAO.  His/her salary payment will be 
processed so that all the government-mandated deductions can be 
deducted/remitted on time.  However, the PAN will have a “hold release” 
instruction to the Central Accounting Office.  This means that the paycheck 
will not be released until submission of all the required documents to the 
Personnel Office.

4.  If the employee submits his/her minimum document requirements (items a to 
e above) after the deadline set (before the first day of classes) or after 
payroll cutoff, any interest or penalty that may be imposed by the government 
agencies involved will be charged to the unit or department.

All other categories of employees (professionals, administrators, staff) are 
required to submit ALL documents before first day of employment.  We will 
appreciate your full cooperation on the implementation of the above changes 
which are being effected for the benefit of both the University and newly 
hired employees.  Thank you very much.



IMELDA G. NIBUNGCO			LEONORA P. WIJANGCO
Director, Personnel Office		Director, Central Accounting Office



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