MGS BUILDERS AND GENERAL CONTRACTOR

EMAIL @: [email protected] / [email protected]

DATE: June 30,2020 REF NO.:MEMO-002

TO: ALL EMPLOYEES

ATTENTION:

FROM: HR MANAGER

SUBJECT: POLICY AND PROCEDURE

1. PURPOSE

The purpose of the Payroll Policy and Procedure is to establish criteria for the proper
internal control and handling of payments to workers.

Pursuant to the provisions as amended under Revenue Regulations No. 18-

2012, we would like to request for Original Sales Invoice or Original Official Receipts for
MGS BUILDERS and GENERAL CONTRACTOR located at Carpio Road Kumintang
Ibaba, Batangas City with Vat Reg TIN 165-649-599-000.

2. TIME ATTENDANCE AND REPORTING

(Workers Responsibility)

2.1 Attendance -Employees are required to account for their hours worked by
writing their name on the logbook with time in, time out and signature.

2.2 Payroll Cutoff- Inclusion of payroll shall be from Friday of the preceding week to
Thursday of the current week from 7am to 5pm including one hour lunch from
12:00pm-1:00pm and afternoon break at 3:00pm

MGS BUILDERS AND GENERAL CONTRACTOR, SITIO SILANGAN, KUMINTANG IBABA BATANGAS CITY, PHILIPPINES 4200
CONTACT US @ :(043)-722-2477
 MGS BUILDERS AND GENERAL CONTRACTOR
EMAIL @: [email protected] / [email protected]

2.3 Overtime- No approved overtime shall be paid. Overtime form shall be approved
before rendering overtime. Properly indicate project assignment and the purpose
of overtime.

2.4 Receipt of Payroll- Every construction worker should sign the payroll report
upon receipt of salary. Any questions regarding the computation of the payroll
should be communicated to the Payroll Personnel before the next Wednesday of
the following week to properly reflect the adjustments on the next scheduled
payroll.

3. PAYROLL PROCEDURE
(Payroll Personnel Responsibility)

3.1 Update Employee Details- Properly indicate complete name, position and
employee rate of the employee. Last name, First name, Middle name, position
and rate respectively with control EMP No. for each worker on the Payroll Master
File.Employees should be classified according to Project Assignment as
indicated in the Payroll.

3.2 Collect Records of Time Worked- Input the figure "1" on the respective working
date if the employee is present, otherwise, leave it blank. Input the no. of
extended hours worked as reflected on the overtime form approved by the
Project Engineer. The excel file will automatically compute for the total working
days and total no. of working hours. Updating of excel payroll file attendance and
sending of photos and attendance on company's group chat should be done on a
daily basis.

3.3 Subtract Deductions- Vale that is requested every Wednesday and Previous
Cash Advances should be correctly deducted on the total gross pay of the
employee.

3.4 Reporting of Payroll- Payroll Report should be submitted to Accounting every

Friday morning for pre audit, payment request and approval of the owner.

3.5 Distribution of Payroll and Payslip- Payroll should be distributed every

Saturday to the workers. The Payroll Personnel should make sure that upon the
release of the worker's pay, it should be signed by the worker who received it. If
payroll shall be sent through any Express Money Transfer (e.g.Palawan, Smart

MGS BUILDERS AND GENERAL CONTRACTOR, SITIO SILANGAN, KUMINTANG IBABA BATANGAS CITY, PHILIPPINES 4200
CONTACT US @ :(043)-722-2477
 MGS BUILDERS AND GENERAL CONTRACTOR
EMAIL @: [email protected] / [email protected]

Padala) attach the "Send Money Form" to the Payroll File to account for
additional payroll expenses.

3.6 Final Reporting of Payroll- Final Payroll with signature of the employees should
be submitted to Accounting every Monday for post audit. Attachments should
include: (1) Printed Payroll File with signature of the employees,(2) Overtime
Form approved by Site Engineer. (3) Photocopy of Logbook Attendance and
other necessary documents as may be deemed required.

3.7 Payroll Findings- Any findings and adjustments (Overpayment or

Underpayment), should be processed during the next payroll period unless
exception is made based on adjustment circumstances.

4. ACCOUNTING RESPONSIBILITIES
(Accounting Personnel Responbilities)

4.1 Pre-Audit -The audit personnel should check for the correctness as to amount.
Verify if the total amount indicated on the payroll file is the total amount
requested for payroll payment .

4.2 Post Audit- The audit personnel should check for the accuracy of the overall
payroll.The following key points should be considered:

1. Review if the employees listed on the payroll worked during the payroll
cutoff period.

2.Verify that all of these employees worked.

3.Catch manual errors made when entering numbers into a system

4.Accurately account for paid or unpaid time off

5. Check employee's signatures if actually received by the employee

6. Verify if time in and time out is correctly labeled.

7.Remove terminated employees from the payroll file.

4.3 Audit Findings - Any payroll findings including overpayment or underpayment

shall be forwarded to HR Personnel every Friday before printing the Payroll
Report

MGS BUILDERS AND GENERAL CONTRACTOR, SITIO SILANGAN, KUMINTANG IBABA BATANGAS CITY, PHILIPPINES 4200
CONTACT US @ :(043)-722-2477
 MGS BUILDERS AND GENERAL CONTRACTOR
EMAIL @: [email protected] / [email protected]

The above procedure is for compliance effectively upon issuance of Notice unless new
policy is issued as replacement or modification for the above policy.

Prepared by: Approved by:

LAURINE GARCIA KENNETH M. SUAREZ

HR MANAGER PROPRIETOR

MGS BUILDERS AND GENERAL CONTRACTOR, SITIO SILANGAN, KUMINTANG IBABA BATANGAS CITY, PHILIPPINES 4200
CONTACT US @ :(043)-722-2477