Department of Environment and Natural Resources Document ID R11-PDDS-MS-PR-015

Revision No. 2
PROCEDURE Date Issued August 25, 2022
Remittance of Mandatory Deduction Page No. Page 1 of 6
Originator: Reviewed: Approved:
LEO ARTEMIO A. PUERTOS MARIFE A. ABAYA ALBERTO N. BANDIOLA
Accountant III/ Chief Admin OIC-Chief, MSD PENR Officer

1. Purpose:
This procedure intends to define the controls needed to ensure strict compliance on the
existing rules and regulations on the remittance of mandatory deductions on salaries and wages of
permanent employees. and the operation of the unit maintains COVID19 health safe protocols
at all times at the PENR Offices and GFIs.

2. Expected Outputs:
By implementing the controls defined in this procedure, the following output is expected:

2.1 Accurate and Timely remittances of mandatory deductions to Government Financing

Institutions (GFIs)
2.2 Handling of remittances are done in strict observance of COVID19 health protocols.

3. Scope:
This procedure covers the activities from the preparation of salaries and wages of employees
thru payroll and Disbursement Vouchers up to remittances to Government Financing Institutions
(GFIs) such as GSIS, HDMF, Philhealth, BIR.

4. Definition of Terms:

Mandatory Deductions The act of withholding specific amount from the gross amount of claim as
required or mandated by law or rule.

Government Financial Refers to government establishment that conducts financial transaction such
Institution as investments, loans and deposit

Obligation Request and Refers to the form used for the certification of the availability of allotment
Status and contains the details of the obligations

Tax Remittance Advice

A document which agencies issue/file with the Bureau of Internal Revenue
(BIR) to report and record remittances (constructive payment) of all taxes
withheld from its transactions.

Electronic Premium An online platform designed to eliminate the manual system of updating

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 Department of Environment and Natural Resources Document ID R11-PDDS-MS-PR-015
Revision No. 2
PROCEDURE Date Issued August 25, 2022
Remittance of Mandatory Deduction Page No. Page 2 of 6
Originator: Reviewed: Approved:
LEO ARTEMIO A. PUERTOS MARIFE A. ABAYA ALBERTO N. BANDIOLA
Accountant III/ Chief Admin OIC-Chief, MSD PENR Officer

Remittance System employee list, premium remittance and reporting employee contributions to
Philhealth

Electronic Billing and A web-based application that enables remitting agencies to download their
Collection System respective electronic billing files (EBFs) and upload their electronic
remittance files (ERFs)

5. Responsibilities:

Receiving/Releasing Clerk Receives and forwards to concerned personnel in charge to remit the mandatory
(Administrative Assistant) deductions from salaries and wages to GFIs

Preparer/Processor Prepares and process Remittance List and Disbursement Vouchers (DV)
(Administrative Assistant)

Indexing Indexes remittances to concerned offices

Administrative Assistant)

Accountants Signs Box C of DV certifying the availability of cash and completeness of

documentary requirements based on Manual of Authority

Liaison Officer Submits/Remits the mandatory deductions to GFIs

6. Process Inputs:
The typical required inputs for this
process are:

6.1 Documents needed:

6.1.1Disbursement Vouchers
6.1.2 Payroll
6.1.3 Remittance List

6.2 Resources Needed

6.2.1 Computer
6.2.2 Office Supplies and Equipment
6.2.3 Funding for Trainings
6.2.4 Excellent Internet connection

Check the Master Document Register Document that do not bear the DENR’s official
Verify that this is the current version before use. document stamps are considered uncontrolled.
 Department of Environment and Natural Resources Document ID R11-PDDS-MS-PR-015
Revision No. 2
PROCEDURE Date Issued August 25, 2022
Remittance of Mandatory Deduction Page No. Page 3 of 6
Originator: Reviewed: Approved:
LEO ARTEMIO A. PUERTOS MARIFE A. ABAYA ALBERTO N. BANDIOLA
Accountant III/ Chief Admin OIC-Chief, MSD PENR Officer

6.3 Personnel needed:

6.3.1 Accountants and other accounting staff involve in the preparation, processing and
approval of remittances to GFIs

6.4 Special training needed:

6.4.1 Training on latest issuances of BIR, GSIS, HDMF, and Philhealth
6.4.2 Other related trainings

7. Process Steps:
7.1 Receiving:
7.1.1 The receiving/releasing clerk receives the Remittance List extracted of from the
payroll from the Personnel Section and DVs from the Cashier Section/Unit and forwards
to the employees assigned to remit the mandatory deductions;

7.1.1.1 If the documents/reports needed submitted late, coordinate and issue

memorandum to concerned offices setting the deadline of submission.

7.2 Processing:
7.2.1 The Administrative Assistant picks up all mandatory deductions deducted in the
claims through DVs and prepares Remittance List;

7.2.2 The Administrative Assistant prepares, processes and indexes DV reflecting the total
amount of mandatory deductions from the remittance list from the Payroll and DVs ;

7.2.2.1 In order that the remittance is accurate, the assigned staff shall analyze and
reconcile the remittances against the recorded deductions from the payroll and DVs and
prepare adjustments, if any;

7.3. Funding of Government Share and Signing of Box A

7.3.1 The releasing clerk release the DV to Budget Unit for funding of Government Share
and subsequently release to MSD Chief for signing of Box A of DV and ORS.

7.4 Filing to GFIs:

7.4.1 BIR Process Flow:

- E-filing of tax returns and submits thru Electronic Filing and Payment System
(EFPS)
- Prepares payment thru electronic Tax Remittance Advice (e-TRA)

Check the Master Document Register Document that do not bear the DENR’s official
Verify that this is the current version before use. document stamps are considered uncontrolled.
 Department of Environment and Natural Resources Document ID R11-PDDS-MS-PR-015
Revision No. 2
PROCEDURE Date Issued August 25, 2022
Remittance of Mandatory Deduction Page No. Page 4 of 6
Originator: Reviewed: Approved:
LEO ARTEMIO A. PUERTOS MARIFE A. ABAYA ALBERTO N. BANDIOLA
Accountant III/ Chief Admin OIC-Chief, MSD PENR Officer

- For Taxes withheld; prepares Disbursement Voucher and payment thru ETPS

7.4.2 GSIS Process Flow:

- Downloads GSIS billing statement from the Electronic Billing and Collection
System (EBCS), a web-based application of GSIS;
- Uploads and matches remittance list with the billing statement;
- If both matches, prepare DV reflecting the total amount covering employee and
employer share;
- If it doesn’t match, coordinate with the Personnel Division for the preparation of
Agency Remittance Advice (ARA) and prepare DV;
- Submits DV to Budget Division for preparation of Obligation Request Status
(ORS) for the employer share ahead of the set deadline of remittance;

7.4.3 Philhealth Process Flow:

- Uploads and matches the Remittance List with the Remittance Status in the
Electronic Premium Reporting System (EPRS);
- If both Employee and Employer share matches, print the Preliminary Employees
Remittance List (PERL);
- Generates the Statement of Premium Accounts (SPA);
- Prepares DV and submits to Budget Division for preparation of Obligation
Request Status (ORS) for the employer share ahead of the set deadline of
remittance;

7.4.4 Pag-ibig Process Flow:

- Prepares Disbursement Vouchers reflecting the employee and employer share for
remittance;
- Submit to Budget Division the DV for preparation of Obligation Request Status
for employer share ahead of the set deadline of remittance;

7.5 Signing in the Box C of DV:

7.5.1 The Accountants signs in the Box C of DV on the availability of cash and
completeness of documentary requirements
7.6 Releasing:
7.6.1 The receiving/releasing clerk releases DVs to approving authority

7.7 Approving:
7.7.1 The Approving authority signs Box D of DV based on Manual of Authority
and forward to Cashier Unit;

7.8 Preparation of LDDAP-ADA and transmittal

Check the Master Document Register Document that do not bear the DENR’s official
Verify that this is the current version before use. document stamps are considered uncontrolled.
 Department of Environment and Natural Resources Document ID R11-PDDS-MS-PR-015
Revision No. 2
PROCEDURE Date Issued August 25, 2022
Remittance of Mandatory Deduction Page No. Page 5 of 6
Originator: Reviewed: Approved:
LEO ARTEMIO A. PUERTOS MARIFE A. ABAYA ALBERTO N. BANDIOLA
Accountant III/ Chief Admin OIC-Chief, MSD PENR Officer

7.8.1 Cashier receives the approved DV, prepare and signs the LDDAP-ADA or
check based on Manual of Authorities;
7.8.2 Approving authority signs LDDAP-ADA and check based on Manual of
Authorities;
7.8.3 Liaison officer transmits remittances to the concerned Government Financing
Institutions.
7.8.4 Prepare ONCALL PAYMENT SLIP to process the ADA particularly PHIC
and HDMF.

7.9 Preparing adjustments

7.9.1 If over/under payment was committed in the remittance of mandatory
deductions, the assigned staff reconciles the under/over deduction and prepare
adjustment.

8. Control of Nonconforming Output:

When the expected outputs are not achieved the following measures are to be implemented:

Nonconforming Outputs Reactive Measures

Inaccurate and Late remittances to Strict compliance on the set deadline.
Government Financing Institution (GFI)
Reconcile amount remitted against deductions
recorded.

IX. Interfaces/Related Forms:

9.1 Related Forms

9.1.1 Remittance List

9.1.2 Disbursement Voucher
9.1.3 Obligation Request Status
9.1.4 LDDAP-ADA
9.1.5 Advice of LDDAP-ADA issued
9.1.6 Checks
9.1.7 Advice of Checks Issued
9.1.8 Index of Payments
9.1.9 Report of Checks Issued
9.1.10 Report of LDDAP-ADA
9.1.11 Order of Payment
9.1.12 Philhealth Premium statement of premiums accounts (SPA)
9.1.13 BIR Form 1600 / 1601-EQ / 1601C

Check the Master Document Register Document that do not bear the DENR’s official
Verify that this is the current version before use. document stamps are considered uncontrolled.
 Department of Environment and Natural Resources Document ID R11-PDDS-MS-PR-015
Revision No. 2
PROCEDURE Date Issued August 25, 2022
Remittance of Mandatory Deduction Page No. Page 6 of 6
Originator: Reviewed: Approved:
LEO ARTEMIO A. PUERTOS MARIFE A. ABAYA ALBERTO N. BANDIOLA
Accountant III/ Chief Admin OIC-Chief, MSD PENR Officer

9.2 Interfaces
9.2.1 Payroll System
9.2.2 Budget Execution Procedure
9.2.3 Cashiering Procedure
9.2.4 Financial Reporting Procedure
9.2.5 Disbursement Procedure
9.2.6 RA 8291 – Government Service Insurance Act of 1997
9.2.7 RA 7875 as amended by RA 9241& RA 10606 – National Health Insurance Act of 2013
9.2.8 RA 9679 – Home Development Mutual Fund Law of 2009
9.2.9 RA 10963 – Tax Reform Acceleration and Inclusion (TRAIN) Act
9.2.10 RA 11469 – Bayanihan to Heal as One Act

X. Revision and Approval:

Revision No. Date Nature of Changes Approved by

00 January 24, 2022 Original issue ALBERTO N. BANDIOLA

1 March 15, 2022 Localization of procedure for the ALBERTO N. BANDIOLA

PENRO and Change of Header
2 August 25, 2022 Change of Signatories ALBERTO N. BANDIOLA

Check the Master Document Register Document that do not bear the DENR’s official
Verify that this is the current version before use. document stamps are considered uncontrolled.