HR System Readiness Check

Most HR and payroll set-ups stall on data nobody has collected and rules nobody wrote down. Answer 17 questions in 5 steps and see what to prepare first.

Step 1 of 5

Employee records

Every other set-up step hangs off the employee record. Missing dates and IDs stop the import.

Employee details
Employee number, birth date, hire date, department and position for everyone
Government numbers
TIN, SSS, PhilHealth and Pag-IBIG for every employee
Employment status
With end dates for probationary and project-based contracts
Step 2 of 5

Salaries and allowances

Pay is computed from the contract. If the rate or the allowance rules are unclear, every payslip is in question.

Rates and allowances
Each employee's current rate, monthly or daily, and allowances with amounts
Allowance rules
Which allowances count as basic pay, which are taxable, which are de minimis
Daily rate
How a monthly salary becomes a daily rate, such as 261 or 313 days a year
Step 3 of 5

Attendance and time records

Late, undertime and half-day rules decide most payroll deductions. These are the rules most often left unwritten.

Work schedules
Shift times, breaks and rest days for each employee
Grace period and undertime
How late and undertime minutes are counted, including rounding
Half days and absences
When a late arrival or early out becomes a half day or an absence
Biometric records
Device brand and model, and a sample export of its records
Step 4 of 5

Leave and payroll rules

Leave balances carry money, and cut-off rules decide whether the first payroll matches the last one.

Leave policy
Leave types, yearly credits, accrual, carry-over and cash conversion
Leave balances
Each employee's balance per leave type as of go-live
Cut-offs and contributions
Pay days, and which cut-off SSS, PhilHealth, Pag-IBIG and tax come from
Overtime and holiday pay
Who is entitled, including managers and supervisors
Step 5 of 5

Approvals and opening figures

Requests need someone to approve them, and a go-live after January needs this year's figures so far.

Approvers
Who approves leave, overtime and DTR corrections in each department
Year-to-date pay and tax
This year's figures per employee, including previous employers of new hires. Not needed for a January go-live
Loan balances
Running loans and remaining instalments. Not needed if there are none

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