How to Set up the BIR Deduction to Deduct Fixed Amounts on PayrollHero?

If you would like to deduct a fixed amount for your BIR deduction, you would need to do this on the Payments page of the Employee profile.

Here’s how to set it up:

  1. Go to the Employee profile
  2. Click on Payments page
  3. If you have the BIR (Strict or Smart Tax table) set up globally, it would be best to disable the payment for those employee’s who will be using a fixed amount for their BIR deduction.
  4. Under the “Employee Payments” select the payment kind “Deduction” and click on ‘Add a new payment‘. See screenshot below:xjv18qxxsK7yrUBsiQrt
  5.  On the deduction payment, choose the following settings:- I want to “debit” a “Philippine: BIR (fixed amount)
    – Pay this “Per payroll” based on “Enrollment” (make sure the employee has the BIR enrollment.)
    – Select the “Philippines: BIR” enrollment.
    – The amount is debited from “Net” and is recorded under the “BIR” bank.
    – Add the employee’s BIR fixed amount on the field on the first row.
    – Name the BIR deduction to any name you want it.See screenshot below:
  6. Once you’re done, click on “Create” and that’s it!
  7. The BIR (Fixed amount) feature should deduct fixed amount per payroll and should show up on the BIR 1601C.


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