[Blueboard] Honoraria, Consultancy or Professional Fees of ADMU employees
cao at admu.edu.ph
cao at admu.edu.ph
Tue Apr 3 09:07:33 PHT 2007
pls. post again. this message contains the correct link to the new form to be
used. thank you.
March 5, 2007
TO : Unit and Department Heads
FROM : Central Accounting Office and Personnel Office
SUBJECT : Honoraria, Consultancy or Professional Fees of ADMU employees
Last March 2, 2007, we consulted with your unit/departments representative
regarding the payments for honoraria, consultancy or professional fees of ADMU
employees processed by Central Accounting Office through voucher checks and by
way of Order for a Check. The following issues and concerns were discussed
during the meeting:
o If an employee moves into a higher income tax bracket as a result of the
honorarium or professional fee that he/she receives, the withholding income
tax computed and deducted may be understated.
- In order to adjust his/her total compensation income, these payments are
encoded as correcting entries in the Payroll System on the succeeding pay
period resulting to duplication of work.
- Any under withholding of tax in the voucher check payment is deducted from
the salary in the succeeding pay period. Thus, the tax withheld or deducted
will increase without any increase in gross pay, which may result to a sudden
drop in employees net pay.
o If an employee has not yet reached the maximum premium coverage for SSS,
Philhealth, and/or Pag-IBIG deduction, his/her deductions may also be
understated for the period covered. For an employee who is already within 10
years before retirement age, any understatement in his/her SSS premium can
affect the retirement benefit computed by SSS.
o Since payment of said honoraria is processed by CAO, the amount does not
form part of the total compensation of an employee in the Personnel Offices
record. Hence, when an employee requests for certification for specific
purposes, the amount of compensation being certified by the Personnel Office
may be understated.
o Voluminous number of Order for a Check / Voucher Checks is being processed
by all units concerned. (Department, Personnel, Central Accounting,
Signatories from Treasurer and Presidents Office).
Considering the above issues/concerns, we agreed that all payments to ADMU
employees for honoraria, consultancy or professional fees would be paid
through Payroll by way of Payroll Authorization Notice [PAN] processed by the
Personnel Office. If this manner of payment will be implemented, the
following benefits will accrue to our employees:
o Convenience. The honorarium, consultancy or professional fee of an
employee will either be automatically credited to his/her bank account or
become part of his/her paycheck so an employee does not need to go directly to
CAO or authorize someone to claim his/her check
o Complete and up-to-date information regarding employees compensation.
There is an assurance that:
- The certificate of compensation being issued by the Personnel Office is
equal to the amount, which the employee actually receives from the University.
- There is a more reliable basis for computing the SSS, Pag-IBIG and Phil
Health contribution of an employee.
o Proper matching of income and taxes. Any increase in gross pay due to
honoraria, consultancy or professional fees will result to corresponding
adjustments in taxes withheld for the same period.
The following revised procedure will be implemented on April 1, 2007, the
first day of the fiscal year 2007-2008.
1. To initiate a payment to an ADMU employee for the honoraria, consultancy
or professional fees, Unit/department will fill out and submit the Request for
Payment for Employees Honorarium or Professional/Consultancy Fee to the CAO.
(You may download this form at this link:
or you may download it from the Central Accounting Office website at
2. The CAO Financial Reporting and Budget/Fund Monitoring Section will
check the budget/fund availability and forward the request to the Personnel
Office. If the budget/fund is insufficient, CAO will return the request to
3. The Personnel Office will review the Request for Payment for Employees
Professional Fee/Honorarium/Consultancy and will prepare the PAN. The PAN is
distributed as follow:
4. The CAO Payroll Section will process the PAN. The honoraria,
consultancy or professional fee will be reflected as a separate item in the
employees pay slip and will be part of gross pay of employee.
5. The Payroll Cut-Off set by the Personnel Office will be applied through
out the process.
We will appreciate your full support and cooperation on its implementation.
Thank you very much.
IMELDA G. NIBUNGCO LEONORA P. WIJANGCO
Director, Personnel Office Director, Central Accounting Office
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