What are the penalties for payroll non-compliance in the Philippines?

Non-compliance with Philippine payroll regulations carries significant financial risk. SSS penalties include a 2% monthly surcharge on unpaid contributions plus 12% annual interest. BIR fines range from PHP 1,000 to PHP 50,000 per violation, plus interest and potential criminal liability for willful non-filing. PhilHealth and Pag-IBIG also impose penalties on late or incorrect remittances. Automated payroll software eliminates the risk of miscalculation that leads to these penalties by applying current contribution tables and tax schedules to every pay cycle automatically.