December is the most demanding and complex month for payroll teams in the Philippines. Aside
from holiday schedules, peak business operations, and event-related bonuses, HR must
complete multiple compliance-heavy tasks all at once.
Companies must process major requirements including 13th month pay, year-end tax
annualization, BIR Alphalist (1604-CF), Form 2316, holiday premiums, overtime and night
differential, final payroll cutoffs, and year-end adjustments. Manual spreadsheets cannot
handle this reliably, which is why more companies are switching to cloud-based payroll
systems like PayrollOnlinePlus.
1. Automated 13th Month Pay — No More Manual Computations
The 13th month computation involves proration for new hires and resigned staff, attendance
validation, allowance inclusion/exclusion, YTD earnings verification, and compliance with
the December 24 deadline.
PayrollOnlinePlus automates this entire process:
✔️ Auto-prorated computation
✔️ Automatic inclusion/exclusion rules
✔️ Instant 13th month reports
✔️ Employee ESS viewing
✔️ Zero manual intervention
This automation saves hours or days of work and eliminates human error.
2. Smart Tax Annualization — Powered by Automation
Annualization is one of the most tedious and error-prone payroll tasks. PayrollOnlinePlus automatically
consolidates YTD income, separates taxable and non-taxable items, adjusts withholding taxes, and
calculates under- or over-withheld amounts.
The system recalculates instantly whenever HR updates bonuses, overtime, adjustments, allowances, or
late payroll changes, ensuring accurate year-end tax reporting.
3. One-Click Alphalist (1604-CF) Generation
Manual Alphalist preparation can take weeks. PayrollOnlinePlus generates a BIR-compliant Alphalist with
proper tagging of active, separated, and new employees, complete income and tax breakdowns, upload-ready
files for BIR, and built-in error validation.
4. Automated BIR Form 2316
PayrollOnlinePlus automates:
✔️ One-click generation of 2316
✔️ Digital signature-ready format
✔️ Correct matching of YTD tax vs final tax
✔️ ESS download access for employees
✔️ Secure cloud archiving
HR no longer needs to print or manually prepare forms individually.
5. December Holiday Premiums, Overtime & Adjustments
December includes multiple regular and special holidays, peak season OT and night
differential, Christmas and event-related bonuses, schedule changes, early dismissals, and
shift adjustments.
PayrollOnlinePlus automates all computations: holiday pay, OT/ND rules, shift differentials,
bonus taxation, and year-end adjustments — reducing errors and saving time.
6. Why Companies Choose PayrollOnlinePlus as Their Payroll System
Businesses rely on PayrollOnlinePlus because it provides:
✔️ 100% PH payroll compliance
✔️ Cloud-based, secure, and accessible 24/7
✔️ Handles thousands of employees smoothly
✔️ Removes manual spreadsheets
✔️ Faster year-end payroll processing
✔️ Built-in audit logs & validation checks
✔️ Seamless HRIS/timekeeping integration
December payroll does not have to be overwhelming. With PayrollOnlinePlus, companies get accurate 13th month computation, automatic annualization, one-click Alphalist generation, fast 2316 preparation, smooth holiday payroll processing, and full compliance — all without manual work.
