Sugar4 uses an employee’s monthly earning as the basis for computing SSS deductions. Please note that it is possible the monthly earning will be different from his payroll amount if the payroll period covers 2 months e.g. February 26 to March 4.
- Pay ending date is less than the 6th day of the month:
Sugar4 uses the balance of earnings for the previous month. If his earnings do not put the employee into the next bracket, additional deductions are not computed.EXAMPLE:
Juan de la Cruz earned P1,100 for the period Feb. 26 to Mar. 4.
The break down is: Feb. 26 – Feb 28 (P200), Mar. 1 – 4 (P900)Since the pay ending date (Mar. 4) is less than 6 days, Sugar4 computes SSS for the month of February. With previous SSS deductions, Juan’s earnings of P200 is not enough to move him into the next bracket and no further deductions are made.
- Pay ending date is greater than the 6th day of the month:
Sugar4 uses the current month’s earnings. In this situation, the employee’s earnings for the current month (March) is not enough to reach the minimum SSS bracket.EXAMPLE:
Juan de la Cruz earned P1,100 for the period Feb. 26 to Mar. 10.
The break down is: Feb. 26 – Feb 28 (P200), Mar. 1 – 10 (P900)Since the pay ending date (Mar. 10) is greater than 6 days, Sugar4 computes SSS for the month of March.
Juan’s earnings for March is only P900 and so SSS is not deducted.