Economy and Simplification of the Payroll System

November 16, 1977 REVENUE MEMORANDUM ORDER NO. 56-77 SUBJECT : Economy and Simplification of the Payroll System In line with Presidential instructions for the institution of measures to economize on office expenditures, in order to cut down on effort and time on the processing of payrolls, and in view of a strong need to improve payroll procedures, there is hereby prescribed a modified forms system for the payment of salaries and allowances. I. PROCEDURES A. PAYSLIPS (BIR Form 163) 1. Instead of the four (4) pay slips in two ply each prepared a month for and issued to employees receiving salaries in cash and the two (2) pay slips in two ply each prepared a month for and issued to employees receiving salaries by warrant, there shall be a uniform system where in only one pay slip using the revised BIR Form 163, attached, shall be used. 2. The new pay slip in single ply shall be issued only on the first pay day of the month. It shall be inserted together with the cash in the pay envelope of those receiving cash or mailed with the first quincena warrant for those receiving salaries by warrant. 3. The pay slip shall no longer be signed by the recipient. As usual it shall be the evidence of the particulars of deductions from the monthly salary of the BIR employee concerned. cdt B. PAYROLL (BIR Form 162) The payroll shall be prepared in the usual procedure, with the usual deadlines and with the usual entries, except for the following: 1. Monthly allowances and gross salaries are now detailed in the payroll but the title of position has been deleted. (See revised BIR Form 162 attached.) 2. The cash payroll shall be prepared only in three (3) ply, instead of four (4) ply, to be distributed as follows: (a) Original to the Auditor (b) Duplicate to the General Services Division (c) Triplicate to the Accounting Division 3. The warrant payroll shall be prepared in three (3) ply to be distributed as follows: (a) Original to the Auditor (b) Duplicate and triplicate to the Accounting Division 4. The last payroll for the month shall include the living allowance of those entitled thereto. In case of payment of salary by warrant, the net salary for the last quincena plus the allowance shall be paid only under one check; the first quincena payroll shall leave the living allowances column bank. C. PAY ENVELOPE (BIR Form 823) A different procedure for using pay envelopes is prescribed. 1. There shall be only one pay envelope to be used for all the salary payments to an employee in a single month. (See revised BIR Form 823 attached.) 2. For one receiving cash, everytime he receives his pay envelope for the first three (3) payroll periods of the month he shall return the envelope to the paymaster after removing the cash and any rider from the envelope. 3. The pay envelope given on the last payday of the month need not be returned anymore; a new pay envelope shall be prepared and issued for the succeeding month. 4. Pay envelopes are not necessary for warrant salaries. II. RESPONSIBILITIES A. DATA PROCESSING CENTER 1. The DPC shall be responsible for preparing the payrolls, pay slips and warrants with the usual deadlines in the modified forms as prescribed in this Revenue Memorandum Order. 2. The DPC will test the revised forms for adjustment to computer specifications before final purchase. B. PROPERTY DIVISION The Property Division shall be responsible for purchasing the forms and envelopes; provided, that the continuous forms (payrolls and pay slip) shall have the final approval of the DPC before placing the final order; and, provided, further, that the pay envelope shall be of a quality that is suitable for repeated usage and shall have the approval of the General Services Division before final purchase. C. ACCOUNTING DIVISION The Usual controls shall be exercised by the Accounting Division. No changes except as prescribed herein is envisioned by this Revenue Memorandum Order. III. PRESENT PROCEDURES Except as prescribed herein, there shall be no changes In the controls and procedures in the preparation of payrolls and other auxiliary documents thereof nor in the order of payment of salaries. Usual deadline procedures for the payrolls shall be followed. IV. REPEALING CLAUSE AND EFFECTIVITY DATE 1. All orders and instructions inconsistent herewith are hereby repealed. 2. This Order takes effect starting with the payroll for January, 1978. aisa dc EFREN I. PLANA Acting Commissioner of Internal Revenue TAN P4519-F2828-A-4 PAY SLIPS BIR FORM 162 REVISED JULY 1997