Why Employees Should Double-Check Their Monthly Tax Deductions

Nov 25, 2025

Why Employees Should Double-Check Their Monthly Tax Deductions

1. Understanding Monthly Tax Deductions
2. Common Reasons Payroll Errors Happen
3. Why Double-Checking Matters
✔ Prevent Overpayment
✔ Avoid Underpayment
✔ Ensure Accurate Benefits
✔ Improve Budgeting
4. How to Double-Check Your Monthly Deductions
Step 1: Gather Your Payroll Information
Step 2: Verify Tax Status
Step 3: Use a Tax Calculator
Step 4: Check Contributions
Step 5: Flag Discrepancies

For most employees, the monthly payroll is straightforward: you receive your salary, the taxes are automatically deducted, and your take-home pay is deposited in your account. But did you know that errors in tax deductions happen more often than you think? These mistakes can cost you hundreds or even thousands of pesos over time.

This guide explains why double-checking your monthly tax deductions is crucial, how to do it, and what benefits it brings.

Monthly tax deductions are amounts withheld from your salary by your employer and remitted to the Bureau of Internal Revenue (BIR). They usually include:

  • Withholding tax on compensation (based on TRAIN Law 2025 rates)

  • SSS contributions

  • PhilHealth contributions

  • Pag-IBIG contributions

  • Other voluntary deductions (e.g., loans, insurance premiums)

The goal is to ensure that your taxes are paid on time and accurately. However, errors can still occur.

Even with automated payroll systems, mistakes are not uncommon. Some common causes include:

  1. Incorrect tax status

    • Single, married, or number of dependents not updated.

  2. Outdated income tax tables

    • Payroll may still use previous year’s tax brackets.

  3. Missing or extra deductions

    • Benefits or allowances may not be properly categorized.

  4. Manual entry errors

    • Mistyped amounts or incorrect overtime calculations.

  5. Multiple sources of income

    • Side jobs or multiple employers can lead to under- or over-withholding.

Over-deducted taxes reduce your take-home pay unnecessarily. If unchecked, you may lose money that could be saved or invested.

Under-deducted taxes can lead to penalties and interest during annual filing. Being proactive helps you avoid surprises at year-end.

Contributions to SSS, PhilHealth, and Pag-IBIG affect eligibility for loans, benefits, and social security claims. Errors can impact these significantly.

Knowing your true take-home pay helps you plan expenses, savings, and investments more accurately.

Collect your payslips, salary details, allowances, and deductions.

  • Check your marital status and number of dependents in your payroll record.

  • Ensure it matches your BIR-registered information.

  • Enter your monthly salary and deductions in a PH Tax Calculator.

  • Confirm that withholding tax aligns with your payroll.

  • Compare SSS, PhilHealth, and Pag-IBIG contributions against current government rates for 2025.

  • Verify that voluntary deductions are correctly applied.

  • If numbers don’t match, report to HR or payroll immediately.

  • Keep records of your communications.

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