TOP BUSINESS AND IT SOLUTIONS

Unit 76 Zeta II Building

191 Salcedo Street
Legaspi Village, Makati City,
Metro Manila, Philippines
Telephone +63 (2) 659 4170
Facsimile +63 (2) 817 4074

04 March 2016
MS. KRISTINE S. CO
Chief Compliance Officer
PPC ASIA CORPORATION
4th Floor, PPC Tradenology Center
Quezon Avenue, Paligsahan D4,
Quezon City, Philippines
Re: Proposal to Perform Payroll Process Outsourcing Services
Dear Ms. Co,
We are pleased to submit herewith a proposal letter to provide our professional services for your
payroll processes. This proposal letter covers engagement scope of work, timeframe,
responsibilities and limitations, and professional fees based on our understanding of your
requirements.
Scope of Work
Based on our understanding of your needs and requirements, we will provide the following payroll
services effective March 10, 2016:
1. Computation of bi-monthly salaries of all employees, including mandated and agreed
deductions;
2. Computation of proper withholding taxes of the employees net compensation income for
Bureau of Internal Revenue (BIR) remittances, and premium contributions to Social
Security System (SSS), Philippine Health Insurance Corporation (PHIC) and Home
Development Mutual Fund (HDMF);
3. Preparation of bank advice to deposit net pay to employees bank accounts;
4. Preparation of pay notices;
5. Preparation and submission of payroll reports and other related payroll schedules to the
authorized personnel of the Company;
6. Processing of bonuses and other incentives separately from regular payroll, if any;
7. Preparation of final pay computation of resigned employees;
8. Annualization of the employees withholding taxes, including preparation of BIR form 2316,
on or before the last payroll period of the year;
9. Consolidation and filing of the Annual Information Return of Income Taxes Withheld on
Compensation (BIR Form 1604-CF) and the Alphabetical List of Employees from whom
taxes have been withheld;
10. Issuance of BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) to all
employees and;
11. Preparation of necessary payroll journal entries.

Engagement Team
The engagement will be carried out by our Taxation and Other Accounting Services Department
under the overall payroll supervision of the undersigned, with the assistance of a Team Manager
and an Associates who are experienced in handling similar engagements. They will be assisted
by other partners and staff as appropriate in the course of the engagement.
Fee Arrangement
Our professional fee for this type of engagement is normally a function of the time spent by our
staff and the level of expertise required to do the job.
Our professional fee for our services shall be:
Service

Fee (exclusive of 12% VAT)

Initial Set-up fee

P25,000 (one-time payment)

Payroll processing and generation of payroll

register, related bank advice, and payroll
journal entries.

P15, 000 per month (for maximum of 30

employees), each additional employee in
excess of 30 shall be charged at 100 per
employee per cut-off period.

Preparation and filing of government

contributions to SSS/ PHIC/ HDMF on a
monthly basis.

P15,000 per month

Preparation of annualized income taxes

withheld and issuance of BIR Form 2316 to all
employees.

P15, 000 fixed amount (for maximum of 30

employees), each additional employee in
Preparation and filing of the Annual
excess of 30 shall be charged at 100 per
Information Return of Income Taxes Withheld
employee.
on Compensation (BIR Form 1604-CF) and
the Alphabetical List of Employees from whom
taxes have been withheld.
Processing other than the regular payroll will be charged separately, such as 13th month pay,
bonus, etc. which is 100% of the monthly fee of a regular payroll.
The fees stated above will be fixed for a period of one year. We agree that these fees will be
increased or decreased by an agreed amount where there are substantial changes in the scope
of services or changes in the level of complexity or activity during the year.
In addition to our professional fee, we expect to be reimbursed for out-of-pocket expenses such
as transportation expenses, photocopying charges, stationeries and supplies, and other incidental
expenses that we would incur in the course off the engagement.
Consulting engagements not directly related to the foregoing engagement will be charged
separately based on the actual number of hours spent by our team. We shall advise you

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beforehand if your questions would require extensive research outside of the above engagement
so that we can agree to the scope of work and the related separate fees.
We will bill you on a monthly basis and would appreciate the settlement thereof within 10 days
from receipt thereof.
Duration of Engagement
This engagement is valid for one (1) year from the date of the acceptance of the contract unless
earlier terminated. The term of this agreement shall automatically be renewed for an additional
one (1) year period, with the terms and conditions subject to further discussion of both parties,
unless prior written notice is given to the non-terminating party no less that thirty (30) days prior
expiration of the term.
Exclusions from our Services
In the event that the Company is subjected to a tax examination by the Bureau of Internal Revenue
(BIR), our services will be limited to assisting the Company with the submission of the tax returns
as required by the BIR, in coordination with your tax consultant, including the preparation of
accompanying schedules and summaries normally attached to the return when filing with the BIR.
We can assist, however, in preparing the schedules and reports other than those we regularly
prepare, as required by the BIR, but is subject to a separate fee quote to be agreed upon prior to
the engagement.
Your Responsibilities
It is fundamental to our engagement that you provide all information which is relevant to your tax
and payroll affairs and that you will bring to our attention any matters which you may be uncertain
about.
You are responsible for designating a competent employee, preferably within senior management
level, to oversee our series, which entails; making all related management decisions and
performing all management functions; accepting responsibility for, and evaluating the adequacy
of, the results of our services; and establishing and maintaining internal controls related to the
subject matter of our services, including monitoring ongoing activities.
Our foregoing fee quote assumes that records are orderly and access to information will not be
difficult.
All tax returns that we have prepared will be approved and signed by the responsible Company
officers.
Conflict of Interest
We provide wide range of services to large number of clients and may render services to
companies and organization which you might regard as giving rise to a conflict of interest.
While we have established procedures to indentify such situations, we cannot be certain that we
can identify all conflict that exist or may develop, in part because we cannot always anticipate
what a company might perceive to be a conflict.
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If you are aware or should become aware of any conflicts relating to the services we provide, you
undertake to notify us promptly.
Other Services
It may interest you to know that our firm also provides tax planning and compliance, management
consulting, litigation support and business advisory services to corporations. We would be most
pleased to discuss with you other professional assistance you may require in the future.
Termination
This engagement shall be terminated effectively on a thirty (30) days advance written notice after
the full payment of all monetary obligations. It is hereby understood that the monthly retainer fee
is subject to periodic review and adjustment upon mutual agreement.
Confirmation
If the services outlined herein are in accordance with your requirements and if the terms and
conditions of the engagement are acceptable to you, please have one copy of this letter signed
in the space provided below and return this to us. Should you have any inquiries for the purpose
of finalizing the agreement, please contact us at telephone number (632) 659 4170.

Very truly yours,

JOEL T. POH
Partner
PPC ASIA CORPORATIONs Authorized Representative:
For and in behalf of PPC ASIA CORPORATION and as authorized by the company, I hereby
accept the terms and conditions of service engagement of TOP Business and IT Solutions, Inc.

PPC ASIA CORPORATION

By:

______________________________
(Authorized Representative)
______________________________
(Position/Official Designation)
______________________________

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