Understanding the Alphalist

This article will show you what is taken into account by PayrollHero to compute your BIR Alphalist.

How does PayrollHero compute your Alphalist?

 

Gross Compensation Income

Gross Pay + Gross 13th Month (14th and so on) + Gross De Minimis + Gross Other Benefits + Gross Other Compensations + Gross Adjustments

 

Non-taxable 13th Month Pay and other benefits

The non-taxable sum of amounts from banks classified as 13th monthpay + non-taxable sum of amounts classified as other_benefit

 

Non-taxable De Minimis

The non-taxable sum of amounts from banks classified as de_minimis

 

SSS, GSIS, PAG-IBIG & union dues

PagIbig + PhilHealth + SSS whichever is applicable to the employee

 

Salaries & other forms of compensation

Non-taxable sum of amounts from other compensations

 

Total Non-taxable/exempt compensation income

Non-taxable 13th Month and other benefits + Non-taxable De Minimis + SSS, GSIS, PAGIBIG and other union dues + Salaries and other forms of compensation

 

Taxable Basic Salary

Gross compensation income – Total Non-taxable income – Taxable 13th Month and other benefits

 

Taxable 13th Month Pay & Other Benefits

The taxable sum of amounts from banks classified as 13th monthpay + taxable sum of amounts classified as other_benefit

 

Taxable salaries & other forms of compensation

Taxable sum of amounts from other compensations

 

Total taxable compensation income

Taxable Basic Salary + Taxable 13th Month Pay & Other Benefits + Taxable salaries & other forms of compensation

 

Exemption Code

Based on the BIR Enrollments in PayrollHero

 

Exemption Amount

Amounts based on exemption code

 

Premium on health

Sum of amounts from banks tagged as health_insurance

 

Net taxable compensation income

Total taxable compensation income – Exemption Amount

 

Tax due

Based on the rates on this table and the net taxable compensation income:

Tax withheld

Tax withheld amounts from PayrollHero

cancham.com.ph_wp-content_uploads_2012_10_RCL-Annualized-Withholding-Tax.pdf (1)

Amount withheld and paid for in december

Tax Due – Tax Withheld

 

Over withheld tax

Tax refundable to the employee Withheld tax was more than the tax due.

 

Amount of tax withheld as adjusted

  • If employee has over withheld tax: Tax Withheld – Over Withheld
  • If employee has paid tax in december: Tax Withheld + Amount withheld in december