Compute and pay 13th month pay
One run per year from posted basic salary, with the ₱90,000 tax-exempt threshold flagged.
13th month pay (PD 851) is computed once per calendar year from each employee's posted basic salary.
Where: HR › 13th Month Pay.
Steps
- Choose the Year and click Open / View Run.
- Click Compute 13th Month Pay. GodoERP sums each employee's posted basic salary for the year and divides it by 12. You'll see the Basic Salary Total (Year), 13th Month Pay and any Taxable Excess.
- Check it. Use Recompute after posting more payroll.
- Approve, then Post to GoDoBooks.
- Disburse: record the payment, in parts if needed.
The ₱90,000 threshold
13th month pay and other benefits up to ₱90,000 a year are tax-exempt. If an employee goes over, the page flags it. The taxable excess is not withheld automatically, because taxing a lump sum correctly needs the BIR annual tax table. Include the excess in that employee's year-end tax annualization.
Corrections
Before any disbursement, use Void 13th month run. This posts a reversing entry, and the run goes back to computed so it can be corrected and posted again. Nothing is deleted.
Tip: Run it in early December after the November payrolls are posted. The legal deadline is on or before December 24.