Hurey https://hurey.ph/ The most scalable HR and Payroll app in the Philippines! Tue, 06 Dec 2022 05:30:49 +0000 en hourly 1 https://wordpress.org/?v=6.1.1 https://hurey.ph/wp-content/uploads/2019/07/cropped-brand-32x32.png Hurey https://hurey.ph/ 32 32 Use BIR Form 1601-C as Guide for Payroll Computation https://hurey.ph/bir-form-1601-c-as-guide-for-payroll-computation/?utm_source=rss&utm_medium=rss&utm_campaign=bir-form-1601-c-as-guide-for-payroll-computation https://hurey.ph/bir-form-1601-c-as-guide-for-payroll-computation/#respond Mon, 24 Oct 2022 07:49:10 +0000 https://hurey.ph/?p=6635 Are you setting up a payroll system for your business in the Philippines? Learn to use BIR Form 1601-C as your guide!

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Establishing a payroll system can easily become a daunting task, especially if you’re a new entrepreneur who has little or no background in accounting. Our suggestion? Start with looking at BIR Form 1601-C because:

  • the Bureau of Internal Revenue (BIR) requires businesses to file this form every month.
  • it needs information that your payroll computation should provide.
  • it is important to keep the form’s criteria in mind when setting up a payroll system.

In any case, a clear understanding of BIR Form 1601-C will give you a general idea of what you should look out for in a payroll system.

Generally, you have three options as to how to proceed with your payroll. You can:

  1. Develop a payroll system from scratch, in-house.
  2. Hire a professional — most likely an accountant — to establish a worksheet-based system for you.
  3. Purchase a spreadsheet template or a payroll software, depending on what your budget allows.
Heading of BIR Form 1601-C
BIR Form 1601-C is technically a business' monthly report on the taxes on compensation it has withheld from employees.

What is BIR Form 1601-C?

Did you know that businesses in the Philippines are obligated by law to act as Withholding Agents for the BIR?  In fact, costly penalties and even jail time can result if a business is negligent in this aspect.

In a nutshell, what is BIR Form 1601-C?

  • It is called the “Monthly Remittance Return of Income Taxes Withheld on Compensation.”
  • When you fill out this form, your business basically answers this question: “In total, how much taxes due from your employees have you collected for the BIR this month?”
  • Here, you summarize your firm’s payroll computation. No individual names or individual pay data are shown.
  • You start off by stating the total amount of compensation you’ve paid to your employees for a specific month
  • You then break its components down into taxable and non-taxable classifications, as determined by Philippine laws.
  • BIR Form 1601-C should be filed by the tenth day of the next month. However, an exemption is set for the December report — its deadline is set on the 25th day of January on the following year.

Parts of BIR Form 1601-C

Briefly, let us scan the sections of this form to get familiar with its structure and the specific sets of data it requires. 

The Heading

The topmost portion of BIR Form 1601-C asks you to indicate:

    • The specific month covered
    • If you are filing the month’s tax return for the first time, or if you are submitting an amended return
    • If you’ve withheld taxes for that month
    • The number of sheets attached, if there are any
    • The tax code specific to your industry (alphanumeric tax code or ATC)

The heading covers Items 1-5.

Main Sections

Part I- Background Information

Here’s where you’ll input the company’s name, address, contact details, tax identification number (TIN), and other business info. Covers Items 6-13.

Part II- Computation of Tax

The core of BIR Form 1601-C. In this section, you’re essentially making a summary of your firm’s payroll. Moreover, the data you’ll provide will show how you’ve arrived at the total withholding tax figure. Includes Items 14-36.

Part III- Details of Payment

How did you remit the taxes you’ve withheld to the BIR? Provide the related information in Items 37-40.

Part IV- Schedule

Withholding tax corrections from the previous months are indicated here, if there are any.

Deconstructing BIR Form 1601-C

Now that we have a general overview of this BIR form, let us dissect its Part II to reveal key takeaways to guide your payroll computation.  

The section starts off with Item 14. What’s the Total Amount of Compensation that you’ve paid all your employees in the given month? From this, we learn the following:

    • First, deduct and withhold the applicable taxes even before the employees receive their pay. 
    • Their pay slip should clearly reflect the deductions made, if there are any.
    • Finally, keep and update records. You must be able to generate monthly reports on the amount of taxes withheld.

From the Total Amount of Compensation, you break it down into two: the non-taxable (Item 21) and the taxable (Item 22).

    • Your payroll should be able to identify and process all taxable and non-taxable components of employees’ renumerations.
Items 14-25 of BIR Form 1601-C
Make sure that your payroll system follows the requirements set in BIR Form 1601-C.

The Total Non-Taxable Compensation (Item 21) is broken down into five groups:

    • Statutory Minimum Wage for Minimum Wage Earners or MWEs (Item 15)
    • Holiday Pay, Overtime Pay, Night Differential Pay, Hazard Pay for MWEs (Item 16)
    • 13th Month Pay and Other Benefits (Item 17)
      De Minimis Benefits (Item 18)
    • SSS, GSIS, PHIC, HDMF Contributions & Union Dues- Employees’ Share (Item 19)

Our key takeaways:

    • First, is that your payroll must be able to tag employees who are MWEs
    • Their Holiday Pay, Overtime Pay, Night Differential Pay, and Hazard Pay are tax exempt. Thus, your payroll system must easily distinguish such items from their Non-MWE counterparts.
    • The previous items are dependent on the number of work hours rendered. Your payroll and timesheet must always be in sync. 
    • The 13th Month Pay and Other Benefits, for the most part, are non-taxable for both MWEs and Non-MWEs. However, your payroll computation must know that any sum received above P90,000 per individual is subject to tax. 
    • Also, your payroll must itemize the De Minimis Benefits (or benefits with minimal value) as identified by the BIR in their website. Furthermore, your system must be able to identify the ceiling that’s set for each item, so that the proper taxes can be imposed on the excess amount.
    • Finally, the mandated deductions listed in Item 19 are also tax exempt. However, your payroll should be able to separate the deductions shouldered by the employees, and not include the employer’s share for the purpose of BIR Form 1601-C. 
 

Due to the Tax Reform for Acceleration and Inclusion Act (TRAIN), the Total Taxable Compensation in Item 22 can be further reduced to arrive at the Net Taxable Compensation in Item 24.

    • For Non-MWEs, the first P250,000 of their income for the year are tax-exempt due to the TRAIN law.
    • Therefore, your payroll system should be able to set apart the taxable and non-taxable components of the compensation received by Non-MWEs.

Finally, we go to the Total Taxes Withheld (Item 25).

    • In summary, your payroll system must accurately identify the taxable components of your employees’ compensation, apply the correct tax rates, and report the total withholding taxes due for every payroll run.

Items 26-30 concern withholding tax adjustments if there were errors in previous months’ calculation or remittance (or both) as well as the penalties involved (if there are any).

    • An ideal payroll system, therefore, should allow you to view the original payroll report and its amended versions to easily facilitate and report the proper adjustments. 

Congratulations! You have successfully completed our crash course on BIR Form 1601-C. Hopefully, you can now clearly see the depth and scope of your payroll system project. Good luck!

HRIS for Rural Banks in the Philippines

Introducing Hurey, the Philippines’ Leading HR and Payroll App

The people behind Hurey knows exactly what lies ahead of you. We’ve been there and done that.

Building your own payroll system is indeed possible, if you’ve got a lot of time and personnel to allocate for the project.

But soon, you’ll be looking for more features to eliminate the recurring, manual tasks needed to maintain your system. Also, you’ll find out that a spreadsheet-based payroll system has a lot of risks — e.g., files can be easily corrupted, deleted, or accidentally altered.

This was the reason why the Hurey HRIS was born. We knew the exact HR and payroll-related needs of businesses, from small startups to large conglomerates.

Everything that you will need, we’ve already done for you. By harnessing the power of digital technology, we’ve produced efficient solutions that are loved by hundreds of busy business owners and their HR and accounting personnel.

So why build everything from scratch when a complete, cost-effective, and ready-to-use HRIS is readily available for your organization?

Don’t waste your time and get your new business running ASAP! Book a free Hurey demo now!

What are you waiting for?

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BIR Withholding Taxes on Compensation: (An Overview) https://hurey.ph/bir-withholding-taxes-employee-compensation/?utm_source=rss&utm_medium=rss&utm_campaign=bir-withholding-taxes-employee-compensation https://hurey.ph/bir-withholding-taxes-employee-compensation/#respond Fri, 09 Sep 2022 02:46:05 +0000 https://hurey.ph/?p=6417 An overview on how withholding taxes on compensation are carried out by firms. Discusses BIR Forms 2316, 1601-C, 1604-C, and Alphalist.

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Are you planning to put up a business, or have started running one recently? Basically, you must understand that the law puts a huge  responsibility on you as a Withholding Agent for taxes due to the Bureau of Internal Revenue (BIR). 

After all, the compensation that you pay to your employees are generally subject to withholding taxes that must be remitted to the BIR. Costly fines and penalties — even imprisonment in extreme cases — await if you are negligent in your role as a Withholding Agent. 

How should you prevent this potential headache? First, understand and have a clear overview of how withholding taxes on compensation are processed.  Read this article to do just that. We will also introduce you to the following BIR forms along the way:

  • BIR Form 1601-C: Monthly Remittance Return of Income Taxes Withheld on Compensation
  • BIR Form 1604-C: Annual Information Return of Income Taxes Withheld on Compensation
  • Alphalist of Employees (an attachment to BIR Form 1604-C)
  • BIR Form 2316: Certificate of Compensation Payment or Income Tax Withheld

What does it mean to be a Withholding Agent?

A Withholding Agent is any person or entity who has control of the payment that is subject to withholding tax.

As a business, you are tasked to collect taxes on behalf of BIR. But how do you do this? You automatically withhold (subtract and temporarily keep) the taxes due when your business makes certain payments. Afterwards, you remit those collections to the BIR. 

Who are required by Philippine law to serve as Withholding Agents?

There are three classifications:

    • Individuals that engage in business or practice a profession
    • Non-individuals such as corporations, associations, partnerships, and cooperatives
    • Government agencies and instrumentalities

What types of withholding taxes am I obliged to collect?

Businesses are required to collect three types of withholding taxes. 

1. Withholding Tax on Compensation

First, the business sets aside remuneration for the services rendered by its employees. Deduct and withhold the applicable taxes even before the employees receive their pay. 

2. Expanded Withholding Tax

These are taxes that you withhold for specific income payments. Examples are:

    • Professional fees, usually outside of employer-employee relationships.
    • Rental income for properties used by your business.
    • Income payments to certain contractors (e.g., general engineering, transportation, warehousing)

The business as a payee can credit the taxes withheld here against its income tax due for that period. 

3. Final Withholding Tax

This is also applied to certain income payments. However, the taxes withheld are not creditable against the income tax due of the receiver of the income. This includes, but is not limited to, dividends, royalties, and prizes.

Withholding Tax on Compensation: How do I go about it?

Here’s a general overview on what you need to do as an employer when it comes to your role as a Withholding Agent for compensation tax. 

1. Organize your payroll computation so that withholding taxes are clearly shown per pay period.

    • You will need a reputable accountant for this. 
    • Use a spreadsheet at the very least. Input the full list of your employees and specify the components of their monthly salaries and benefits. 
    • Important! Each employee must be classified as either a Minimum Wage Earner (MWE) or non-MWE. MWEs are employees who earn P20,833 per month or below.
    • MWEs are exempt from income tax. The same applies to their holiday pay, overtime pay, night differential pay, and hazard pay. However, additional compensation in excess of a certain amount is taxable. Refer to your accountant for this.
    • Check out the BIR’s withholding tax calculator. You can pattern your spreadsheet after this. Or, if you prefer to download free or paid payroll spreadsheet templates (scan for malware first), check if your accountant’s computation will tally with the results of the BIR calculator.

2. Withhold the proper tax on compensation for every payroll.

    • Deduct and withhold the applicable taxes even before the employees receive their pay. 
    • Their pay slip should clearly reflect the deductions made, if there are any.
    • Keep and update records. You must be able to generate monthly reports on the amount of taxes withhold.

3. Remit to the BIR the taxes you’ve withheld. Do this monthly.

    • Use BIR Form 1601-C: Monthly Remittance Return of Income Taxes Withheld on Compensation
    • This form shows the total amount of taxes that you’ve withheld from all employees for the month. 
    • Completely fill out and submit this form to the BIR on the 10th day of the following month.  For the month of December, the withheld taxes must be remitted by the 25th of the following month – January.
    • Include MWS in this report, even though they are exempt from withholding taxes.

4. Submit to the BIR the summary of taxes you’ve withheld from employees for the calendar year.

    • Use BIR Form 1604-C: Annual Information Return of Income Taxes Withheld on Compensation
    • File this form before January 31 of the following year.
    • The accomplished form serves as your annual report to the BIR. It confirms the total amount of income tax that you’ve withheld from your employees for the tax year.
    • Attachments required for BIR Form 1604-C are: Alphalist of Employees and Alphalist of MWEs. The BIR provides an app that you can download and install to generate such lists.
    • Declare and certify each name on the Alphalist using BIR Form 2316. .

5. Issue BIR Form 2316 to your employees.

    • This form is the Certificate of Compensation Payment or Income Tax Withheld
    • It shows your employees’ gross income and the taxes that you’ve withheld for the whole calendar year.
    • Fill out and issue individual forms to all of your employees by the 31st of January of the following year. 
    • If there’s a termination of employment, this form must be issued on the last day that the payment of wages was made.
    • The more employees that you have, the more tedious this task can become.

In Hurey’s previous blog, we discussed in detail what BIR Form 2316 is, and the steps involved in its preparation and submission.

Getting a headache, already?

To remind you, this is just an overview. We have not touched on the nitty-gritty of the subject, like how to actually remit the withheld taxes, and the yearend adjustments and refunds if too much or too little taxes were withheld. Most of all, we have not discussed the legal technicalities, as well as the remedies and penalties involved when firms commit errors in their role as a Withholding Agent. 

Smiling young man holds tax papers; laptop screen says tax has been paid

Let Hurey deal with your withholding tax troubles

Why build everything from scratch when there’s a ready-made solution available for you? Save yourself from all these troubles and consider getting Hurey, the Philippines’ most scalable HR and Payroll app.

With Hurey, Filipino firms can fulfill their role as a Withholding Agent without breaking a sweat. Simply input all employee data and complete the initial setup required, and payroll runs become automatic! 

The cloud-based app then generates filled-out BIR Forms 2316, 1601-C, 1604-C, as well as the attached Alphalists — all with just a few clicks on a button. Just imagine the precious work hours that this will save you!

What’s more, Hurey’s dedicated team works diligently in the background, keeping tab on the latest developments that concern its cloud-based app. BIR forms, tax computations, and such are automatically updated as needed.

Don’t waste your time and get your new business running ASAP! Book a free Hurey demo now!

What are you waiting for?

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5 Digital Transformation Examples for MSMEs https://hurey.ph/digital-transformation-examples-msmes/?utm_source=rss&utm_medium=rss&utm_campaign=digital-transformation-examples-msmes https://hurey.ph/digital-transformation-examples-msmes/#respond Tue, 09 Aug 2022 07:04:09 +0000 https://hurey.ph/?p=6267 Micro, small, and medium enterprises (MSMEs) in the Philippines have much to learn from the 5 digital transformation examples listed here.

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Business owners and leaders in the Philippines are recently looking for digital transformation examples for their micro, small, and medium enterprises (MSMEs). The interest was sparked mainly by a 2021 Google report which revealed that the country can unlock P5 trillion in economic value by fully embracing digital technologies.

However, a major challenge was pointed out: digital adoption is quite low among SMSEs, the sector which makes up 99.51% of businesses in the country.

Is your business among the 90% whose digitalization levels are either ‘basic’ or ‘intermediate’, according to the report? Take heed as in this article, we’ve identified five companies whose digital transformation can inspire you. Before we proceed with the examples, let’s make sure that we’re on the same page when it comes to key terms and concepts.

Definition of Terms

  1. Digital Technology
    Why is it called ‘digital’? Because the information is represented by digits. Digital technology, therefore, encompasses anything that involves the creation, storage, processing, distribution, and utilization of digital information for all imaginable purposes.

  2. Digitization
    A printed document or photo cannot be fed into a computer. The physical must have a digital copy, so you use a scanner or digital camera.

    Keep in mind its purpose. We ‘digitize’ things that we need our digital devices to work on.

  3. Digitalization
    You now have digitized documents and photos. What’s next? You ‘digitalize’ your paper-based customer records management. You create, retrieve, and update records much faster the digitalized way.

    Digitalization, therefore, is simply improving the way we work. We do this through digitized information, as well as digital tools and technologies.

  4. Digital Transformation
    Here, we turn a ‘traditional’ or ‘low-tech’ organization into a ‘digital powerhouse’. The organization embraces digital technology and learns to wield its full power in ALL aspects of its operations.

    Let’s stay with our previous example. You’ve realized that your digitalized customer records management now provides a wealth of information to propel your business. With the right software and devices, you can automate workflows related to customer service, sales, marketing, product development, and others.

    You see the immense benefits that this new prospect brings. However, the whole organization must first become a digital powerhouse. It needs to undergo digital transformation.




Middle-aged man holding tablet; arrows pointing up indicate success in the digital arena

5 Companies with Awe-inspiring Digital Transformation

We can better understand what digital transformation is all about through real-life examples that MSMEs can get inspiration from.

1. ASA Philippines Foundation

ASA Philippines is a non-stock, non-profit corporation that specializes in microfinance. In our previous blog, we discussed how a cloud-based system worked wonders for them.

Their major problem: it takes one month to collate data from their 1,150 branches all over the country. To solve this, ASA in 2016 adopted a cloud-based system which allowed them to:

  • Access to real-time financial and operations data
  • Detect onset of problems and solve them
  • Spot opportunities and craft strategies for growth
  • Monitor performance of all branches

In doing so, ASA proved that knowledge is power, and time is indeed gold.

  • Net income increased by 150% from the previous year.
  • Loan products expanded to nine, from only two before
  • Loan portfolio grew by 57%, and by another 52% the next year.
  • ASA added 533 branches to bring the total to 1,683

2. Union Bank

Union Bank of the Philippines (UnionBank) seems to be doing away with physical offices and ATMs or automated teller machines. They wanted to become a fully-digital bank. Hence, they started their digital transformation way back in 2016.

Now, customers can open bank accounts without having to actually go to a bank. In 2021 alone, almost 1 million new UnionBank accounts were created digitally.

Everything that’s been traditionally done inside physical bank premises were digitalized. Consequently, they developed a complete suite of apps to cover all customer touchpoints:

  • UnionBank Online for retail customers
  • MSME Business Banking app for MSMEs
  • The Portal app for corporate

The UnionBank leadership saw the potential disruptions that digital technology will bring to traditional banks. Rather than being swept away, they decided that they will become the disruptors by ushering in new, innovative ways of banking.

3. Catterpillar

From local companies, we now shift our attention overseas, to heavy equipment manufacturer Caterpillar. Would you believe that a company famous for construction and mining equipment is also into software development?

Caterpillar thought that they can attract and retain more customers if there’s a way to predict maintenance and parts replacement. For that reason, they did the following:

  • A digital transformation division called Cat Digital was established.
  • They studied Artificial Intelligence and Internet of Things (IoT) sensors.
  • They developed AI and IoT-based products that solved their problem.
  • They sold these products. Even the competitors’ machineries can use them.

Caterpillar made their heavy equipment superior. They developed complementary digital devices, software, and support services that became an added revenue stream.

4. Burberry

This British luxury brand’s digital strategy has long focused on redefining and improving the customer experience. When the Covid-19 pandemic hit and physical stores were closed, Burberry was quick to focus their efforts on digital:

  • They launched virtual stores where clients experience a digital likeness of their products
  • Virtual events were held within these virtual stores
  • Virtual sales associates assisted customers via video calls
  • They created AR tools (augmented reality) that clients used to visualize Burberry products right within their homes

Caterpillar made their heavy equipment superior. They developed complementary digital devices, software, and support services that became an added revenue stream.

4. Domino's Pizza

The pizza chain nearly went bankrupt in 2008, but turned to technology for redemption. From a brick-and-mortar pizza chain, it has transformed into “an e-commerce company that sells pizza.” Here’s some snippets of Domino’s inspiring tech journey:

  • CEO Patrick Doyle saw an opportunity as smart phones were replacing the keypad ones. He asked his IT group to produce an app that allows people to order pizza while waiting for a stoplight to change.
  • As a result, his IT guys delivered EasyOrder. Consequently, bulk of the food order now comes from a digital platform versus the telephone.
  • ‘Domino’s Tracker’ gave real-time updates on customers’ orders— from preparation to delivery.
  • They deployed ‘Dom’, an artificial-intelligence ordering bot which allowed customers to place orders from their preferred digital channel, with little effort.
  • Their AnyWare technology lets people order easily from a wide range of smart devices and digital channels.
  • In 2016, Domino’s made the world’s first pizza delivery via drone. This happened in New Zealand.
  • They teamed up with Ford and launched a ‘driverless’ delivery in 2019, as well as with Rad Power Bikes for the e-bike counterpart.

Domino’s has done much more as it evolved into a tech titan. They have successfully infused digital technology in everything that they do, and other companies are following suit.

MSMEs in the Philippines must conduct a deeper study into the digital transformation examples in this article. In the country, the race is technically on, but only a few have started their runs. The 2020 Global Connectivity Index (CGI) tags the Philippines as just “a starter” when it comes to the adoption of digital transformation.

There is still time, but can your MSME afford to be sideswiped by the competition?

Young man holds flag; other arm raised to indicate success

Our Advice: Focus on HR and Payroll

MSMEs in the Philippines must prioritize digitalization in the aspect of HR management. The reason is quite simple: company success and workforce management are directly related. If you can’t efficiently manage your people now, what more when you introduce digital transformation?

An HRIS is a good stepping stone for MSMEs that want to try out digital transformation as shown in the previous examples. In our previous blog, we explained how automation-assisted HR and Payroll procedures can be cost-effective even for small businesses and startups. Mundane tasks are eliminated, and you can free up HR personnel who can then focus on the people aspect of your digital shift.

MSMEs can start digital transformation with Hurey as an example

Hurey is the most scalable HR and payroll app that’s specifically designed for MSMEs. This means that your business can select features it immediately needs, then add others later as the need arises. 

If you are just starting your digital transformation journey, Hurey is the perfect companion for you! Your business will learn the benefits of a cloud-based system, paperless transactions, automation, AI-backed and 24/7 employee support, real-time data reports, and a lot more! 

What are you waiting for? Book a demo now.

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Rural banks in the Philippines must get HRIS https://hurey.ph/rural-banks-philippines-hris/?utm_source=rss&utm_medium=rss&utm_campaign=rural-banks-philippines-hris https://hurey.ph/rural-banks-philippines-hris/#respond Fri, 01 Jul 2022 07:22:45 +0000 https://hurey.ph/?p=5825 Rural banks in the Philippines must get hold of the immense benefits afforded by a capable HRIS or risk losing it all to the competition.

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Do rural banks in the Philippines really need to get an HRIS?

For starters, an organization can only be as great as its people. For this reason, great companies give prime importance to human resources management.

But what if your company’s unique customer base is ‘low tech’, just like the case of rural banks in the Philippines? Would you insist on doing things the way they were done before, even when a newer and more efficient process is proven to work? Is a Human Resource Information System (HRIS) just a waste of limited resources, if nothing’s broken that needs fixing?

Rural banks in the Philippines have much to lose if they ignore the huge benefits of an HRIS. It’s like insisting on travelling on foot, when a car ride is ready and willing to take you to places. 

What is an HRIS?

An HRIS leverages the developments in information technology (IT) to effectively manage all aspects of human resource functions and applications.

  • Recruitment, Training and Development – hire and retain the best talents
  • Performance Evaluation – assess work output
  • Employer – Employee Relations- maintain mutually beneficial relationship
  • Sustain Company Culture – vision and mission, policies, traditions, events
  • Manage Employee Benefits – salaries, social security, incentives, etc.
  • Create a Safe Work Environment – promote physical and mental wellness
  • Disciplinary Actions – handle infractions against company rules and policies

Time-consuming and repeating tasks can overwhelm the HR department, more so as the company grows. It is in this regard that the HRIS was created. With an HRIS, a company gets hold of a seamless system for collecting, storing, maintaining, and recovering critical information about their greatest asset— their workforce.

Change is coming

Rural banks in the Philippines have enjoyed these features that made them the bank of choice in the provinces:

  • Niche Market
  • Rural banks provide credit to food producers such as farmers, fisherfolk, and cottage industries that are among the most marginalized sectors.

  • Geographic Advantage
  • Their presence in the regions makes them the main access points for financial services.

  • Personal Touch
  • Rural banks operate mostly on a person-to-person approach. They know their areas well. As a result, the locals trust them.

  • Tailor-Fit Products and Services
  • In addition, their personal knowledge of the countryside enables them to come up with unique products that their clients need. 

Adjust or be left out

HRIS for Rural Banks in the Philippines

However, the playing field is changing due to recent updates in information technology. Rural banks will lose their edge if they don’t act fast. 

  • Tighter Competition
    Rural banks are planted in provincial areas.  On the other hand, commercial banks are mostly in urban centers. In other words, the two have different target markets, but that was before. The  bigger banks are now taking a slice out of the rural pie with the help of digitalization.
  • Geographic Advantage Being Negated
    The commercial banks don’t have to build actual branches in remote areas. As long as Internet service providers continue to expand coverage, they can reach out to more people.
  • Advent of Satellite Internet Service
    The Philippines will be the first country in Southeast Asia to get satellite Internet service from tech visionary Elon Musk. Take note— government officials said Starlink may start delivering services by the end of 2022. This means that rural areas and remote islands can gain Internet access simply by putting up satellite dishes.

What must rural banks do in response? They must hold their ground, evolve, and offer superior products and services. Moreover, the heroes of countryside development must not become a relic of the past. They must embrace technology and wield it, just like their competition.

Rural banks in the Philippines need HRIS

Have you noticed a common trait among great companies? They have superb HR departments. They hire the best talents and keep them motivated to perform exemplary work. An effective HR group, therefore, is crucial to attain corporate goals.

Similarly, rural banks in the Philippines must streamline their HR processes to rise up to new heights. They must choose an HRIS that their HR departments will love. The specific features that they must look after should include:

  • Automation of Repeating Tasks
    Your bank needs to focus. Thus, you must eliminate recurring HR tasks that can simply be automated by an HRIS. Payroll preparation, tax computations, employee information management, request and approvals are some examples.

  • Digital Payroll
    Do you still disburse cash for payroll? Paying cash wages require 14-18 person-days per month, as shown in a study of small firms with 10-99 staff. On the other hand, disbursing digital wages through bank transfers needs only two person-days per month. Recent innovations in digital payroll solutions can still reduce this to just mere minutes.

  • Saves Time for High-Value Projects
    An HRIS can free up more time from your HR and Finance people. Because of this, high-impact projects can be tackled, like expanding the bank’s products or improving its work processes. Moreover, the group can pursue innovations that will help drive revenues up and reduce costs.

Other Benefits

  • Strengthens Human Interaction
    One of the key strengths of rural banking is the human element in its transactions. The larger banks may use digitalization to reach the same market, but rural banks still have the upper hand. Technology can never truly mimic the ‘warm feeling’ when one deals with another person. Rural banks, thus, should use technology not to replace interactions, but make them more efficient.

    For example, field officers can increase their personal visits by going straight to where their job orders need them to be. With an HRIS, it is possible to log their attendance through their mobile devices. Also, they have the option to use the nearest biometric device of their rural bank. 

  • Good for Work-From-Home Setups
    It’s easy with an HRIS, whose built-in features ensure productivity even when employees are working from their homes.

  • Improves Productivity
    First, you must decide and set KPIs. Second, use the HRIS to measure, monitor, and adjust those as needed. Data can be viewed anytime and from anywhere there’s an Internet connection. What’s more, data is presented in easy-to-digest reports for quick decision-making.

  • Supports Business Expansion
    Add more branches or branch-lite offices if that is your bank’s strategy. With an HRIS, you can manage all employees from whatever location or time shift they may be in. All you need is a device with an internet connection. 

  • Saves Millions on On-site Servers
    Your bank can save millions of pesos with cloud-based systems. First, there is no need to purchase on-premise servers. Second, the related maintenance and upgrade are eliminated too. Third, your rural bank will have no need to for legacy software. With cloud-based systems, your bank needs to keep only their computers, smart devices, and most important of all, their internet connection.

  • Ensures Business Continuity
    The Philippines is prone to earthquakes, tsunamis, volcanic eruptions, landslides, and flooding. When a disaster strikes an area, your bank’s crucial data sits secured and accessible in the cloud. Even if your physical office suffers major damage, business operations can swiftly resume as records are intact.

Real Winners: Your Customers

The benefits that an HRIS brings to any organization will surely transcend to the customer side. How is it so? Using an HRIS allows you to focus on the business essentials. As a result, your rural bank can offer better services and superior financial products that will make clients happy.

By fully embracing an effective HRIS, rural banks in the Philippines can continue fulfilling their noble mission of driving growth in the countryside.

How can Hurey help?

Hurey is the most scalable HR and Payroll application in the Philippines. Moreover,  it is a cost-effective HRIS solution that fits the needs of firms here, including rural banks.

We understand the problems that small enterprises face, more so in the aspect of limited manpower. Therefore, Hurey has harnessed the power of information technology and put it at your fingertips. Now, your staff can do previously time-consuming and nerve-wracking HR tasks with just a few taps, swipes, or clicks on our app. It’s that easy!

Contact us for a free demo and experience the Hurey difference.

HRIS Rural Banks Philippines

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Digitalization of Rural Banks in the Philippines Crucial to Economy https://hurey.ph/digitalization-rural-banks-philippines-2022/?utm_source=rss&utm_medium=rss&utm_campaign=digitalization-rural-banks-philippines-2022 https://hurey.ph/digitalization-rural-banks-philippines-2022/#respond Thu, 26 May 2022 01:30:38 +0000 https://hurey.ph/?p=5441 The digitalization of rural banks in the Philippines will boost financial services and help the nation achieve its targeted economic growth.

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Rural banks in the Philippines must speed up their digitalization this 2022. The economy has woken up from its pandemic slumber and growth opportunities abound. Those who are quick to infuse technology in their businesses will reap most of the economic rewards. Most of all, the digitalized rural banks will better fulfill their mission to drive economic growth in the regions.

Rosy Economic Outlook

The Covid-19 pandemic dealt a crippling blow to our economy in 2020. At that time, our Gross Domestic Product (GDP) decreased by 9.5% as movement restrictions were in place. The next year, GDP recovered slightly by 5.6% as people coped up with ‘the new normal. Government restrictions were then relaxed as vaccines became available.

Fortunately, COVID-19 cases finally came into recession after a huge spike in January 2022. Our economic managers thus came up with a forecast: GDP will increase by 7% to 9% this year. It will likely be at par, or even beat the pre-pandemic levels. The 8.3% GDP growth this first quarter confirms this positive outlook. 

The 6% to 7% GDP growth forecast may indeed become achievable in the next two years if things will continue to do well. Therefore, the digitalization of rural banks in the Philippines must be swiftly carried out. This will allow the economy to absorb the maximum benefits from this sector. 

Agriculture and Rural Banks in the Philippines

Rural banks in the Philippines did not suffer as much compared to other firms. The reason lies in their major dependence on the agriculture sector, which improved even in the midst of the pandemic. In fact, rural banks’ cumulative net income grew by 33.5% to P3.2 million by September 2021 compared with the same period in 2020.

The ‘heroes of the countryside’ proved to be resilient during the worst of the pandemic. However, can they meet the expected demand for financial services with better days seemingly ahead?

Digitalization Challenge for Rural Banks in the Philippines

The government has lifted most of its restrictions related to the pandemic. This encouraged firms that were on self preservation mode to quickly transition, grow and expand. Even in the farthest municipalities, the scale of economic activities are back to pre-pandemic levels.

Domestic consumption went up, and tourism has opened to both locals and foreigners. Also, billions of pesos are in fresh circulation thanks to the recent national elections. As a result, financial support services are currently in high demand as entrepreneurs seize the available opportunities left and right.

Rural banks in the Philippines are thus under pressure to rapidly increase operational capacities. They need to step up since regional entrepreneurs rely on them for capital. Their clients cannot maximize the opportunities at hand without financial help.

But how can rural banks overcome this challenge? The answer is digital transformation. It can help them become more intelligent, agile, and sustainable in this changing digital economy. 

The Digital Effect

New technologies allow microlenders to expand their portfolio, widen their reach, and process higher volumes of transactions. Moreover, investing in digital technology allows small banks and microfinance firms to boost efficiencies, offer more services, and grow revenues.

One example is ASA Philippines Foundation, a microfinance Non-government Organization. In 2016, ASA  interconnected its 1,150 branches across the country using a cloud-based system. The benefits reaped from this move allowed ASA to expand to the farthest places. 

ASA also diversified its product offerings by four times, resulting to a 57% increase in loan portfolio. The best of it all, ASA increased their net income by 150%.  


The NGO gained access to real-time financial data care of the new automated system. ASA officers recall that it takes a month before they can figures on portfolio performance, profitability, and related information. Now, ASA can readily take action and craft strategies in view of real-time data. 

As a result, ASA has expanded to 1,683 branches across the country. They have almost two million borrowers now and their loan portfolio is at P29.39 billion.

ASA’s digitalization success is worth should be replicated by rural banks in the Philippines since they belong to the same microfinance industry.

Digitalization of Rural Banks in the Philippines

Online Payment: An Introduction to Digitalization

There are some good things that came out of the COVID-19 pandemic. For one, it encouraged use of online payment channels. Filipinos who insist on over-the-counter payments were forced to experience the ease and benefits of digital transactions. Who will go back to paying cash after tasting the convenience of paying anytime online? Who will miss the tiresome commutes and long queues to physically deliver cash to the cashier? 

Consumers and business owners alike got to devote more time to their livelihoods, thanks to the convenience offered by online payment channels. Also, the organizations that utilized cashless payments gained key advantages. First, they can now process thousands of transactions without having to add personnel or physical facilities. Second, the cashiers’ workloads became lighter as more customers resort to using G-Cash, PayMaya, online banks and other e-facilities. Third, personnel can actually be reassigned and given other roles if their customers’ dependence on cashiers have been significantly reduced.  

Rural banks in the Philippines, therefore, can start with digital payments before deciding to go full-blast with their digital transformation.

Resistance to Tech Softened

Before COVID-19, it was hard to sell the concept of online payment channels to customers who distrust technology. They were content with paying cash, so they can’t be bothered with creating online accounts and learning different apps.

The volume of digital transactions, however, grew steadily in recent years despite the resistance of traditional customers. What brought its steep rise to popularity, unexpectedly, was due to the pandemic. 

The use of digital channels gained much traction when the government’s restrictions on physical movement peaked. People can’t go out, but transactions can be made online. People who missed shopping in malls found refuge in e-shopping. Those who want to avoid the crowds opted for online-based delivery setups— for food, groceries, clothes, basically anything. Businesses quickly saw the increase in ecommerce transactions and made it easier for customers to avail their products and services online.

Taking all of these to account, it is no wonder that consumers payments accounted for 78% of the 4.6 billion monthly payments made in the first half of 2020. People are now more open to digital transactions, and rural banks in the Philippines must take advantage. The digitization of its processes will bring immense benefits to both the business and client’s side, as exemplified in the previous story of ASA Philippines.

Narrowing Down the Digital Divide

There is however one problem. Digital payments may not be as accessible for low-income consumers. The same holds true for micro and small business, especially those in the provinces. 

The Bangko Sentral ng Pilipinas (BSP) discussed the smartphone ownership and internet access gap in its 2019 Financial Inclusion Survey. Their report said 4 out of 10 adults in rural areas do not have access to a smartphone nor the Internet. Their data for adults under the socio-economic class E was similar.

Furthermore, their 2019 FIS showed that 52% of Filipino adults own a smartphone. However, only one in ten use them for financial transaction. The reasons cited? Lack of trust and awareness, weak signal or slow internet, and preference for bank and ATM transactions. 

Rural banks deal mostly with farmers, fisherfolks, cooperatives, and various cottage industries that belong to the most marginalized sectors. Therefore, their clients may not have access to smartphones or the internet. The situation, however, varies from area to area, so a one-size-fits-all digitalization solution should not be expected for all rural banks.

What should be kept in mind is that people love technology. It is embraced as soon as it becomes available in the community. The digitization strategy of rural banks in the Philippines thus should not call for an abrupt transition. Rather, it should outline a series of steps that should be taken as access to technology improves.

Government's 2023 Vision: A 'Banked' Population

The 2019 BSP study also mentioned that 51.2 million adult Filipinos do not have bank accounts. This means that around 71% do not have access to legitimate financial services that help improve lives.

The BSP however noticed a 53% surge in bank account ownership by the second quarter of 2021. From 20.9 million adults, those who own bank accounts rose to 41 million. This is a promising development but overall, there still exists a large financial inclusion gap in the Philippines. The BSP thus launched the National Strategy for Financial Inclusion (NSFI) 2022 to 2028 to address the issue. 

The NSFI is a six-year plan which pushes for inclusive growth and financial resilience for Filipinos. Achieving these goals requires increasing transaction account ownership from 29% to 90% by 2028. Moreover, the plan identified four strategic objectives or major areas of intervention:

  • Promote inclusive digital finance
  • Strengthen financial education and consumer protection
  • Enhance access to risk protection and social security nets
  • Enhance agriculture and MSME financing ecosystem

Strengthening Program for Rural Banks in the Philippines

The BSP also established the Rural Bank Strengthening Program (RBSP) to improve the operation, capabilities, and competitiveness of rural banks in the Philippines. The three-year structured program was developed by the Interagency Working Group of the RBSPT (IAWG-RBSP). 

The RBSP has four key elements: 

  • Strengthened capital base
  • Holistic menu of five (5) time-bound tracks,
  • Incentives and capacity building intervention, and
  • Review and enhancements of existing regulations.

Kickstart Your Digital Transformation Journey

Hurey is a cloud-based HR and payroll app that can be scaled easily to meet the needs of any business— including rural banks. It can automate repetitive HR and payroll tasks, so your staff can focus on supporting your rural bank’s digital transformation.

Hurey has partnered with GCash to offer a more convenient salary disbursement and encourage cashless transactions and online payments. Moreover, Hurey can be easily integrated with the Xero accounting software to improve your financial institution’s accounting, tax, and compliance process.

Hurey has also inherited Microsoft Azure’s security assessments to ensure secure exchange of financial information between your rural bank branches. Moreover, its database is geo-replicated to guarantee the safety and easy recovery of your and your clients’ data during disasters.

Contact us for a free demo and experience the Hurey difference!

Digitalization of Rural Banks in the Philippines

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Implementing Hybrid Work Setup with HRIS Technology https://hurey.ph/implementing-hybrid-work-setup-with-hris-technology/?utm_source=rss&utm_medium=rss&utm_campaign=implementing-hybrid-work-setup-with-hris-technology https://hurey.ph/implementing-hybrid-work-setup-with-hris-technology/#respond Thu, 28 Apr 2022 01:53:31 +0000 https://hurey.ph/?p=5374 With the continuous advancements in the technology used for work, many believe that implementing a hybrid work setup will pave the path to a successful balance.

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With the continuous advancements in the technology used for work, especially in the Human Resource Department, many believe that implementing hybrid work setup with HRIS will pave the path to a successful compromise. However, this work setup requires major adjustments in your organization, which can be made easier with the help of a good Human Resource Information System. But how?

As everyone tries to embrace the ‘new normal’ setup after the numerous waves of COVID-19 surges, specific approaches are being introduced to the different aspects of our lives. Schools are now open, everyone is finally welcome to visit public spaces, and restrictions are finally being lifted.

In the professional setup, the Fiscal Incentives Review Board (FIRB) released a directive for Business Process Outsourcing (BPO) companies to return to on-site work last April 1, 2022. This was frowned upon and called out by different worker groups and lawmakers in various statements urging the board to reconsider their decision.

Hybrid Work Setup with HRIS

You can accomplish a mountain of tasks for your company with a good HRIS! There is an endless list of benefits and here are only some:

Manage Employee Information

HR professionals in the past used to be troubled by the endless paperwork they had to accomplish within a limited amount of time. Not only that but they were also expected to sort and store every employee information that was passed unto them to ensure that everything is safe and secure.

With an HRIS, the necessary data given by both current and prospective staff can be uploaded to a cloud system that only specific individuals or departments have access to. It would be easier to find files as per company practice, and even for compliance. This also allows employers to review every applicant’s file thoroughly and select the best person for the job post.

Furthermore, a good HRIS can be used in onboarding processes which lessens the paperwork new hires must  accomplish on their first day.

Empower Workers

Having an HRIS will give workers the ability to feel more empowered because the program allows a better user experience for everyone in the using the system. They can have access to the goals they have finished, KPIs, and even show their performance with a specific parametric. This also helps managers tailor different training courses for specific employees and decide which one is fit to be promoted.

Additionally, an HRIS can keep records of any disciplinary action taken against an employee which helps in filing cases for termination or looking for opportunities for improvement.

Reduce Redundant Meetings

One disadvantage of the hybrid setup is the excessive meetings. Because there are days when employees work from home and when they must report to the office, bosses frequently convene large meetings where only the same topics are discussed.

Inside the HRIS, organizations can customize  a section or page of the system for announcements. As well as create a feed for posting notices, filing requests, and checking other information in the database.

That way, employers could determine which departments have been notified, which employees need to be checked, and even identify if there is already a response to the announcement.

Make Data-driven Decisions on Hybrid Work Setup with HRIS

Another noteworthy feature of an HRIS is that you can choose what you want to see in your software. Some systems focus on simply integrating every document, while some include predictive analytics such as forecasting and modelling of data from the logged information.

With the help of the projected data, you can make more crucial decisions for your company. This reduces the work done by professionals when creating reports and gathering data. Since the manual administrative work is lessened, you can make plans for identifying losses, what to do next, and what can be modified in a timely manner.

Ensure Compliance

Something that drags the process of any paperwork ensures every aspect of the document is complete. This includes all the necessary information and the necessary forms for attachment. Since employees need to fill out and check each document for submission, they tend to take days before filing each compliance requirement.

This is not a problem with HRIS since the software automates form completion and verifies the validity of the forms to be filed. An HRIS also keeps up to date with new regulations and shows which forms should be submitted together. It can also have a digital signature feature to streamline the gathering of approvals from various signatories regardless of where they are.

The future of workplace setup

Lockdowns due to COVID-19 made people reflect and spend more time with their family, peers, and even themselves. For a generation who wants to optimize their time, the hybrid model is surely necessary since this allows people to easily adjust. Not only that, but they can also work from home and onsite, depending on the employer’s demands. In the increasingly complicated employment landscape, this strategy will help firms attract individuals who reside further away while upholding a person’s sense of belonging and team spirit.

Since HR is one of the cores of any functional working environment, there is demand for the best programs that will help the company become even more productive. Hence, there is a need to integrate current technology with good information software that would cater to the needs, goals, and wants organizations have set.

Together with a good human resource information software, this is the future of the workplace. 

Hybrid Work Setup with HRIS

How can Hurey help?

Those are just some of the key features of HRIS that you can have in your organization!

With Hurey, you are free to tailor your cloud-based HRIS app with all the features necessary to increase efficiency. From simple file keeping to the complex data analyzer and predictor, you can have all that you need in one centralized system.

What are you waiting for?

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Complete Guide in Choosing Your Company HRIS https://hurey.ph/guide-in-choosing-your-company-hris/?utm_source=rss&utm_medium=rss&utm_campaign=guide-in-choosing-your-company-hris https://hurey.ph/guide-in-choosing-your-company-hris/#respond Tue, 29 Mar 2022 07:04:22 +0000 https://hurey.ph/?p=5167 Stay on top of your game by optimizing your processes with the help of a Human Resource Information System. This is your complete guide in choosing your company HRIS.

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Every organization has its own set of people, plans, and systems—all of which contribute to the company’s distinct strategic advantage. However, the growth in the market brought by different factors ushers a lot of competition. With the constant developments, industries aim to offer employment positions for people who are deemed qualified to fill them, providing a large pool of options for both job searchers and employers. Let us help you in choosing your company HRIS.

Since the hybrid work setup is now considered a norm, as one major effect the pandemic has on the economy as well as workplace culture itself, companies are trying to engage in the digital transformation and telecommuting of their businesses. Hence, Human resources have shifted its focus from people administration to people operations and strategy, a trend that acknowledges administrative labor while creating a positive experience for the employees.

The need to actively connect with workers, customers, and others makes it difficult for businesses to strike a balance between meeting corporate goals and needs while also providing a strong experience for everybody. As a result, more are trying to stay on top of their game with the help of a Human Resource Information System for the past years.

HRIS and its importance

Human Resource Information System (HRIS) is the synergy of Human Resources and Information Technology. This encompasses the broad suite of software used in HR that are intended for policy and procedural mandates by the organization, people management, and data tracking among its other utilization. It is a centralized system that covers most of the HR basic tasks, if not everything.

Unlike the basic programs that only focus on accomplishing a minute task, an HRIS tries to optimize the entirety of the company’s system which prevents unnecessary errors and confusion brought by manual input. HRIS saves time for employees, as well as the organization because you are only clicks away from finding an important piece of information. HRIS is also a cost-effective technique in cutting expenses. This is because time is saved through the system, thus, making it easier for workers to do their jobs.

Not only that, there are numerous ways on how choosing HRIS helps professionals create more comprehensive and concise data reports which are helpful in coming up with vital decisions for the company. More importantly, HRIS can be easily upgraded so it can keep up with the current technology. This enables organizations to have an edge over  HR processes.

 

Factors to consider:

1. Your organization

There are numerous options in choosing your company HRIS, all of which can help your company to thrive. What you need to do is recognize what is most fitting for your organization’s needs. These are what you need to consider before acquiring an HRIS:

Every organization has its own set of objectives, goals, and plans. Before you start searching for an HRIS, you need to know the problems that arise, the issues your HR faces, and other operations that hinder the growth of your company. Assess the severity of your problems, then envision the kind of results you wish to achieve. From there, you can take into consideration the culture of your organization. Then you can have an outline of the major problems and how you can solve them, and the effect you wish to have.

2. Staff size

Not all systems are equally made, some are designed to cater to small and medium-sized enterprises (SMEs) while others can support large corporations. There are also HRIS that offer standardized software that can serve organizations of varying numbers of employees. However, this poses a slight problem when it does not fit well with the company.

3. Budget

Adopting HRIS packages requires a budget that needs to be well thought out before acquiring one. You need to consider the maximum number of users that can use the software, and how many can access features for smoother functions. Also, you need to know the extent of the features that are available in your preferred system. The more complex the system you would want to have, the more expensive it will be. This is because developers dedicated more time in trying to design and execute the program for its users. Remember to set a baseline budget and ceiling financial plan because this will benefit you.

4. Company goals and needs

Companies strive to maximize their resources for their growth. So, when organizations try to adopt a new system, they review the overall processes of the HR and how it affects the totality of the company. Since there are different goals and needs for every company, they try to adopt different systems that best suit their wants and objectives. With this in mind, HR tries to examine the available choices and select the top system in achieving the best possible outcome for them.

Choosing Company HRIS

When Choosing Your Company HRIS, it should be:

1. User-Friendly

COVID-19 enabled everyone to be acquainted with technology. But even though years has passed already, some people still find it hard to navigate  processes. A good HRIS has an interface that is friendly to its user. This means that it is easy to learn and understand because it aims to provide a good user experience. The product you will get depends on the people who will use it. It will be designed based on the people’s capability to follow the software’s complexity. Additionally, when choosing a good HRIS, it should be organized, has a trouble-free design that allows easier access to tools, features, and options. Moreover, it should also include quick access to commands as well as features your organization requires.

2. Functional

The HRIS that will help your organization achieve the best result will perform the intended behavior of the system. This involves the core tasks, functions, and services the organization offers. Moreover, it improves the efficiency of the employees and minimizes mistakes. It integrates data depending on the strategy and target of the institution. More importantly, it meets and even exceeds the expectations set.

3. Upgradeable

A valuable product is not stagnant. There are times when software is upgraded for further fixing, modification, and adaption of new technology which is done to prolong its survivability in the market. In other words, some enhancements have to be done even after installing the new system. This is done by the developers as part of the evolution the HRIS you will acquire should include which allows the system to serve its purpose for a long time.

4. Reliable

You need to know the consistency of the system. This includes considering if there are existing technical errors in the HRIS that can be a threat to the operations of your organization. You need to find an HRIS that has a reputation for increasing reliability as time passes. This can be seen in maintenance and analysis during procurement. It should be flexible, one that can be utilized even in an ever-changing environment.

5. Supports growth and expansion

The best HRIS for your business is one that can promote and support the growth and expansion of your organization. You can see this based on the offered services, the coverage of the software, and the ability of the HRIS to perform well under growing circumstances.

Choosing Company HRIS

How can Hurey help?

The pandemic brought a big change in the HR processes where technology and manual processes were synergized. This revolutionized the industry, making everything easier with the help of different systems.

With Hurey, you have a reliable cloud-based accounting software that provides different features and tools that are used for different HR tasks which include the integration of data, bookkeeping, and tax compliance among its other features. Not only that, it includes the tools that could help your business grow while keeping your information safe.

 

Book a free demo now and start enjoying the Hurey and XERO integration.

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Philippine HR Outline: Workplace Trends that will Shape 2022 https://hurey.ph/philippine-hr-outline-workplace-trends-that-will-shape-2022/?utm_source=rss&utm_medium=rss&utm_campaign=philippine-hr-outline-workplace-trends-that-will-shape-2022 https://hurey.ph/philippine-hr-outline-workplace-trends-that-will-shape-2022/#respond Wed, 23 Feb 2022 01:49:32 +0000 https://hurey.ph/?p=5105 Streamline your operations by leaving the mundane, repetitive tasks to machines, and start assigning your human resources to core tasks.

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The past year, many of us anticipated that it would be the year when things would finally return to normal. With vaccines becoming more available, and the rate of COVID-19 cases declining, everyone thought that it would only be a matter of time before we can go back to our lifestyles pre-pandemic. However, 2021 defied all our assumptions and turned things around, introducing new variants, breaking records of positive cases, and even leaving a high rate of labor turnover for reasons such as pay dissatisfaction, poor benefit packages, and limited career advancements.

The events caused by the pandemic posed serious workplace obstacles. Each problem had a direct impact on various areas of work like the business as a whole. The staff, the welfare of firms and their workers, and even the outputs were put to the test during this period.

Because 2021 was a hard time for businesses, there has been a shift in how Human Resources functions. The present situation led HR professionals to step up their game and take charge in trying to stay on top of the industry their company belongs to. Hence, the great reliance on the department of every workplace.

However, 2022 appears to be a year of major transformations. As relentless as these changes may be, there are other trends that started in 2021  and reinforced by the pandemic but are more likely to become big trends in 2022, such as:

1. Hybrid work arrangement is here to stay.

The peak of the COVID surge forced everyone to work more flexibly. Since then, there has been a rise in the digitalization of job duties and changes in job frameworks. These enhanced the completion of business’ needs and targets. This also led to remote job escalation wherein staff are allowed to work at a firm located in another region, even country.

In a survey conducted by Price Waterhouse Coopers (PwC) on remote work in the US, they found that 83% of employers achieved overwhelming success for their company and employees after shifting to a remote work arrangement.  

Moreover, considering  COVID-19 is highly unpredictable, flexible work arrangement offers a good alternative to companies since they can organize if they want a full work-from-home experience for the employees, alternate physical presence, or shortened work hours.

2. Well-being is a top priority.

For years, several actions were targeted at supporting the well-being of the staff, but they were not given enough concern until the covid struck. During the height of the pandemic, there was an increase in the turnover rate due to mental health difficulties. It served as a wake-up call for many firms. This pushed them to consider the wellness of their employees.

This crucial time had everyone on their toes resulting in countless sleepless nights. As a result, it influenced the welfare as well as the output of every employee. Since they are the heart of every business, firms are trying to protect their employees’ health and provide a working environment that will help them thrive.

In addition, when the welfare of employees is valued, they become more productive and empowered. Positive behaviour equated with positive interventions help people maximize their capabilities, thus, assisting them in becoming the best version of their professional and even personal selves.

Understanding employees from a holistic perspective helps them in more ways than companies anticipate as this foster better relationships among the people in the organization, which increases staff morale and lowers absenteeism.

Hurey and Xero Integration

3. Skill-Based Hiring over background.

Since the start of COVID-19, old conventions are being thrown out and new trends are being embraced by organizations. One such trend is the hybrid work arrangement, but aside from that, people should also expect recruiting flexibility.

Nowadays, more businesses are placing greater emphasis on the skills and core competencies potential employees may bring to the job rather than employing pre-determined people with a good paper presented during the interview. This new trend was just recently introduced wherein companies are encouraged to connect with job seekers depending on the skill set their organization requires. This aids in quickly identifying basic skills needed in job openings and linking them to positions where they are most fitting.

Since, the corporate world is in the midst of transition. Employers are opting and taking the initiative to find people who can do well in their jobs.

This trend is unconventional since this merged courses learned during training with skill evaluation rather than solely basing recruitment on the educational and work background of a person. Hence, becoming a very prominent course that took the HR world by storm.

4. Multigenerational workforce.

Diversity in the workplace is a critical component of attaining the organization’s goals as this allows different skills, styles, and opinions that could help the business thrive. To achieve diversity, employers are trying to hire people from different generations such as the baby boomer generation, Generation X and Z, and the millennials.

A multigenerational workforce is believed to be the integration of different habits, communication styles, and work ethics where everyone can learn from one another.

This combination allows employees to exchange knowledge and experiences from different standpoints, which creates a mutually beneficial partnership called the reverse-mentoring process where knowledge transfer and retention stick more.

Moreover, this could help in debunking generational stereotypes where various people eradicate the assumptions they have. Thus, helping them work harmoniously with one another.

5. Adapt, Identify, and Transform

HR processes continuously change throughout time, more so during the pandemic. This dynamic has become the very reason why this aspect is crucial but satisfying for HR professionals. In 2022, a fundamental change foreseen is HR steering away from its project-based focus and shifting to the product-based one.

This enables a strategy that focuses on what is in front and seeing the value it has rather than the value it will give once it serves its purpose. Thus, enabling HR to adapt, identify, and then transform its processes after considering every aspect.

On top of that, this will help in having more HR professionals who have empathy towards other workers aside from just noting what will be the best practice for the company, which then builds credentials and integrity for the organization as a whole. There is also a bigger chance of having employees who have the initiative to consider leadership positions in certain projects and take accountability for wrongdoings by setting an example.

As digitalization continues, standardized processes using software are also seen. More tasks are going to be accomplished by computers which will require HR professionals to up-skill and become tech-savvies to go with the flow.

preparing BIR Form 2316

How can Hurey help?

This year, the corporate world is more likely to face unprecedented problems that will require HR to change the system for the nth time. Hence, the need to take care of your organization and the people who are part of it.

To adapt to the changing times, Hurey, a cloud-based Human Resource platform, can assist with different problems that could arise by automating HR activities like payroll, recruitment, monitoring, timekeeping, and more to accomplish a successful digital transformation for your organization.

Hurey allows you to address the technical part of your HR and payroll efficiently by automating mundane tasks, so you can have the time to explore experiences with the people who are part of the company.

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Tax Compliance with Hurey: Knowing BIR Form 2316 https://hurey.ph/tax-compliance-with-hurey-knowing-bir-form-2316/?utm_source=rss&utm_medium=rss&utm_campaign=tax-compliance-with-hurey-knowing-bir-form-2316 https://hurey.ph/tax-compliance-with-hurey-knowing-bir-form-2316/#respond Fri, 19 Nov 2021 03:07:16 +0000 https://hurey.ph/?p=4892 Here's a simple guide to Tax Compliance with BIR Form 2316 and how Hurey can make your BIR Tax filings much easier!

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We’re only a month away from January. This means you should already be preparing for the annual filing of BIR form 2316. Good job if you have already started, but if you haven’t, don’t worry. We’ve prepared a simple guide for you!

But first… 

What is BIR Form 2316?

 

The BIR Form 2316 – Certificate of Compensation Payment/Tax Withheld is a government-issued document that shows an employee’s gross income and the taxes withheld by the employer throughout the year.

Aside from being proof of income and tax withheld, you can also use the BIR Form 2316 for other purposes, such as proof of financial capacity for loans and other applications.

Is it the same as an Income Tax Return?

The short answer is no. The ITR is a tax return while BIR Form 2316 is the certification of an employee’s income and taxes withheld. However, you can use the two interchangeably.

What is it for then?

The Filing of BIR Form 2316 is one way for the Bureau of Internal Revenue (BIR) to keep track of tax-paying employers in the Philippines. The BIR can use this form to determine if an employer has submitted the compensation tax withheld for a given year.

Moreover, employees can also get information from BIR Form 2316 on how much tax their employers deducted from their paychecks during the previous year.

It is also worth noting that, during the same calendar year, if an employee resigns, the new employer should seek the Form that the employee got from the old employer

When should I fill out?

 You must create, complete, and mail BIR Form 2316 to all covered employees on or before the 31st of January of the year following the time in which the compensation was paid.

After both the employer and each employee have signed it, the employer must file BIR Form 2316 with the BIR by February 28 of each year.

Form 2316

Getting Ready to Submit BIR Form 2316

Keep these in mind when preparing to submit your Certificate of Compensation Payment/Tax Withheld.

  1. Preparing BIR Form 2316 can be complicated, especially when you have plenty of employees. Start early, so you won’t have to cram and have more time to review your forms before filing.
  2. Ensure that your records are accurate and updated. You wouldn’t want to repeat everything because of a mistake.
  3.  Double-check everything and ensure that you are using the correct version for filing BIR Form 2316. Follow this link for the latest and correct version:

BIR Form No. 2316 (January 2018 (ENCS)

BIR also offers online filings with eFPS and online forms at eBIRForms

4. Form 2316 requires the signature of BOTH the employee and employer.

5.  Three (3) original copies of the form should be completed and sent to employees for signing on or before January 31.

6. Once your employees have signed, you must file the copies of BIR Form 2316 with the BIR before February 28. The BIR, Employer, and Employee shall be provided with their respective copies of the original.

preparing BIR Form 2316

Make it easy with Hurey

Hurey is the Philippines’ most scalable HR and payroll software. It’s designed to help you take care of the stars of your business by automating, simplifying, and optimizing your HR and payroll operations.

Hassle-Free Tax Calculation

Using an HRIS in preparing BIR Form 2316 and other Tax Compliance requirements makes all the difference in terms of volume. With Hurey’s built-in intelligent tax calculation feature, you can automatically adjust tax computations based on earnings or deductions on every pay run.

Moreover, you can automatically generate your BIR Form for each employee with Hurey, so you won’t have to go through the hassle of doing it manually. This feature not only saves your employees time, but also lessens the fatigue caused by redundant tasks.

Most importantly, you don’t have to worry about the accuracy of records, volume of work, and whether or not you are using the right forms. Everything is automated and taken care of by the system to ensure efficiency, while maintaining the quality and reliability in your filings.

Premium Quality Service

Hurey is specifically tailored to suit the Philippine market and its ever-changing compliance requirements. This ensures that your HRIS is always up to date with the latest tools and features to streamline your processes.

As your company expands, you’ll need to devise solutions to deal with the increased demand and effort. Automating HR processes with Hurey will help your company keep up and match the growing workload demand. Aside from tax computations, you can also automate other mundane HR operations and free up your HR staff. This gives them more time to concentrate on core tasks.

Hurey’s features also provide your HR team more time to improve their productivity with tasks that truly provide value to your business. As a result, not only is your company’s human value strengthened, but it also becomes more agile and ready to take on your competitors.

Book a free demo with Hurey and experience the difference of using the most scalable HR and payroll app in the Philippines!

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How the Hurey + Xero integration benefits your business https://hurey.ph/how-hurey-xero-integration-benefits-your-business/?utm_source=rss&utm_medium=rss&utm_campaign=how-hurey-xero-integration-benefits-your-business https://hurey.ph/how-hurey-xero-integration-benefits-your-business/#respond Fri, 29 Oct 2021 04:42:43 +0000 https://hurey.ph/?p=4704 Streamline your operations by leaving the mundane, repetitive tasks to machines, and start assigning your human resources to core tasks.

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Businesses, in a way, are similar to a machine. The more well-oiled and well-maintained their parts are, the better it runs. The Hurey + Xero integration is a seamless solution that allows you to improve your company’s processes.

Efficiency stands at the core of every successful business. It is also defined  as the peak level of performance that uses the least amount of inputs to achieve the highest amount of output.

With the business landscape continuously changing little by little in between Industrial Revolutions, staying ahead on trends and advancements is the key to beating your competitors.


In order to achieve efficiency, use the least amount of inputs to achieve the highest amount of output

In our last article, we have discussed the use of technology in businesses and how it is borderline absurd to keep on doing dull work when a machine can do it in a matter of minutes. Most importantly, it goes against every company’s goal to achieve peak efficiency.

Streamline your operations by leaving the dull, repetitive tasks to machines. With your freed up time, you can focus on giving core tasks to your human resources. Remember, less amount of input and high amount of outputs.

Here are the key benefits of the Hurey + Xero Integration

Employee and Payroll Mapping

Map your existing staff or create new profiles to your Xero account with just one click of a button. With this, you can quickly fill and map your payroll data for a precise and time-saving process.

Improved Timekeeping

Post staff timesheets, including late time ins, leaves, and absences. Proper timekeeping aids in the upkeep of the firm’s policies and helps to avoid unchecked downtimes. It also allows you to handle minor issues before they become more serious. Furthermore, it improves time reporting, review, and sign-off on Xero.

Pay run Generation

Easily adjust your Hurey to make your business process a lot easier for your admin staff. Quickly create cut-off periods, including attendance, holidays, and pay items for more precise payroll reports. With a better process, your staff can free up time that is often wasted on routine tasks.

Disbursements Monitoring

Keeping a close eye on your company cash flow ensures that the company’s financial situation is closely monitored and kept at a good standing.

You can keep a close eye on your cash flow with Hurey’s automated updates. It can also keep track of your reimbursements and payables. Moreover, you may access these files at the tip of your fingers anytime since it is readily usable in the cloud.  

 

Hurey and Xero Integration

Taking care of the stars of your Business

Your employees are generally among the bits and pieces that keep the company going.

Each staff plays their part by doing their job of keeping the firm running. However, your employees aren’t just simple cogs to giant machinery. They have the potential to grow and expand their skills past their supposed purpose with the right handling.

Moreover, as the head of the business, keep it moving by taking good care of your staff and reducing the factors that could cause stress, friction, and needless workloads that would soon lead to burnout.

How Automation with Hurey + Xero integration eliminates wear for your staff:

Always make use of the available technology. Back in the late 1800s, conveyor belts changed the way factories work. This invention drove a huge increase in staff production by improving work efficiency and cutting physical labor efforts.

Most importantly, automation doesn’t mean replacing people with machines. Right now, it is one of the top industry advances that altered the way businesses around the world work.

Some key benefits of automation with the Hurey + Xero integration are:

Accuracy

Minimize errors and maintain accuracy within your work papers.

Regardless of how well-organized and well-maintained your staff is, it is impossible to eliminate errors. Anyone can end up making mistakes that could lead to loss of resources such as time and money. With the right technology, you can lessen these risks and correct errors before they cause a huge problem for your organization.

Save time

Staff are paid for the valuable time they offer to the firm. Make sure that it is not lost pushing papers or doing tasks that doesn’t for your business.

Hurey helps your HR staff to process payroll and benefits in just a few minutes, so they can have a stress-free pay period.

By using Hurey + Xero integration, you can get rid of the wasted time spent on repetitive payroll processes. It also allows you to dedicate your staff to focus on high-impact tasks that bring more value to your company. As well as keep your staff doing things that promote growth.

Customizability

When choosing a tool to automate your processes, company culture fit and functionality should be on top of your checklist. Customizability is a good sign as it means that its functions can be tailored to suit your needs.  

This Hurey feature allows you to set it to meet the unique needs of your company. When paired with Xero, it gives a seamless match that allows you to easily set up, monitor, and update your data, among other features.  

preparing BIR Form 2316

Make the most out of your Hurey experience

Technology is an integral part of the ever-growing business industry.

Hurey is the most scalable HR and Payroll app in the Philippines. Automating processes beyond payroll and accounting helps put your business in a strong place against other firms. Moreover, a cutting-edge HRIS for hiring, selection, etc. also adds more value to your organization.

Constantly upgrading and improving are key factors in keeping your business agile. It also readies you for the sudden changes in the business landscape. With Hurey, you can keep running your firm in optimal condition and stay ahead of the competition.

Interested?

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