Payroll day can be stressful when there are still missing attendance logs, unapproved overtime, outdated employee information, or salary changes that have not been reflected. Most payroll problems don’t actually start when payroll is being processed. They often begin during the days leading up to it, when HR is gathering records, checking employee changes, and making sure every adjustment is accounted for.
A reliable payroll checklist for PH HR teams helps turn this process into a more organized routine. Instead of going straight into payroll calculations and hoping everything looks right, HR can work through each important area first, from employee records and timekeeping to leave, deductions, government contributions, and taxes.
This guide walks through the key checks HR should complete before running payroll, along with a simple pre-payroll checklist you can use for every cutoff.
Why Payroll Problems Usually Start Before Payroll Day
Payroll errors rarely appear out of nowhere. They often begin with a missing time log, an overtime request that was never approved, an employee record that was not updated, or a leave entry that HR forgot to include.
That is why a pre-payroll review matters. If the information going into payroll is incomplete, even an accurate payroll formula can produce the wrong result.
For Philippine HR teams, this is especially important when payroll needs to account for overtime, rest-day work, holidays, night shift differential, leave, and mandatory contributions. DOLE rules provide different pay treatment for overtime, rest days, holidays, and night work.
Step 1: Check Your Employee List
To begin your payroll checklist in PH, start with the people who should actually be included in the cutoff.
Check for:
- New hires who should receive their first salary
- Resigned or separated employees who should no longer be included in regular payroll
- Employees who transferred departments, positions, or locations
- Approved salary increases or other compensation changes
- Changes in employment status
Don’t assume these updates have already reached payroll. Compare your employee masterlist with HR records and make sure effective dates are correct.
This is also a good time to check employee information used for government reporting and deductions. SSS uses employee compensation and membership information when determining contributions, while PhilHealth requires employers to maintain employee information for premium reporting.
Step 2: Review Attendance and Timekeeping
Next, check the time data that will affect gross pay.
Look for:
- Missing time-in or time-out logs
- Late arrivals and undertime
- Approved overtime
- Rest-day work
- Regular and special holiday work
- Night shift hours
This step deserves extra attention because timekeeping issues can directly change an employee’s pay.
Under the Labor Code, overtime beyond eight hours is generally subject to additional compensation, while work between 10 p.m. and 6 a.m. is subject to night shift differential of at least 10%. Holiday and rest-day work can also carry additional premium pay.
Before moving on, resolve missing or questionable entries with the employee or supervisor instead of carrying them into the payroll run. A payroll checklist that PH HR teams actually use should help flag these issues before they affect the final figures.
Step 3: Check Leave and Other Adjustments
Once attendance is clean, review leave and payroll adjustments.
Confirm that:
- Approved leaves are recorded
- Unpaid leaves are properly reflected
- Leave balances are updated
- Employee deductions are complete
- Approved allowances or other recurring adjustments are included
Pay particular attention to changes submitted close to the cutoff. A salary adjustment, deduction, allowance, or unpaid leave can easily be missed when information is scattered across emails, spreadsheets, and separate HR records.
A good payroll checklist in PH should make it clear who reviewed each adjustment and whether it’s ready for payroll.
Step 4: Review Government Contributions and Taxes
Before running payroll, verify that the correct contribution and tax information is being used.
Review the employee and employer portions of:
- SSS
- PhilHealth
- Pag-IBIG
- BIR withholding tax
These amounts shouldn’t be treated as static figures. Contribution schedules and tax rules can change, so HR should use the latest official guidance applicable to the payroll period.
For example, the current SSS contribution schedule reflects a 15% contribution rate on the Monthly Salary Credit, with applicable employer and employee shares plus the relevant Employees’ Compensation and Mandatory Provident Fund components.
PhilHealth states that employee and employer premium shares are remitted by the employer, while Pag-IBIG’s membership guidelines specify employee and employer contribution rates based on monthly compensation.
For withholding tax, BIR rules require employers paying compensation to deduct and withhold tax using the prescribed compensation tax tables.
Step 5: Run a Payroll Review
Now compare the payroll figures before you approve them.
A useful review should include:
- Comparing total payroll with the previous cutoff
- Checking unusually large salary increases or decreases
- Reviewing new or unusual deductions
- Verifying the total number of employees
- Checking employees with zero or unusually low pay
- Reviewing overtime, holiday, and night differential amounts
The goal isn’t to recalculate every employee from scratch. It’s to spot numbers that do not make sense before they become a payday problem.
This is where a payroll checklist that PH teams can repeat every cutoff becomes especially useful. Instead of relying on memory, HR has a consistent set of checks before approving payroll.
Step 6: Generate and Release Payslips
Once payroll has passed review and approval, generate the payslips.
Check that each payslip shows the correct employee information, earnings, deductions, and net pay. If your process includes employee self-service, make sure payslips are available through the appropriate channel after payroll is finalized.
This final check gives HR one more opportunity to catch obvious discrepancies before employees see their pay details.
The Pre-Payroll Checklist
Use this payroll checklist PH guide before every payroll run:
☐ Employee list updated
☐ New hires and resignations checked
☐ Salary and status changes confirmed
☐ Attendance logs complete
☐ Overtime reviewed and approved
☐ Rest-day and holiday work checked
☐ Night shift hours reviewed
☐ Leave records updated
☐ Unpaid leave and deductions confirmed
☐ Allowances and adjustments included
☐ SSS, PhilHealth, and Pag-IBIG reviewed
☐ BIR withholding tax checked
☐ Employee count compared with previous cutoff
☐ Unusual payroll changes investigated
☐ Payroll approved
☐ Payslips generated and reviewed
A consistent pre-payroll routine can turn payday preparation from a last-minute scramble into a repeatable HR process.
With Eezi, employee records, attendance, leave, and payroll can work together in one system, helping HR keep the information behind each payroll run organized and easier to review.
Ready to make your pre-payroll process easier to manage? Book a demo today and see how Eezi can bring your HR records, attendance, leave, and payroll together in one place.
