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BIR Form 2316 – Employer Filing

by QNE PH for Blog Post

First, what is BIR Form 2316? It is the Certificate of Compensation Payment or Income Tax Withheld. Employers are required to withhold taxes from employee’s salary based on the latest TRAIN Law which must reflect in the BIR Form 2316…

BIR Form 2316 – Employer Filing
Published: April 22, 2019

BIR Form 2316 or also known as the Certificate of Compensation Payment or Income Tax Withheld is a yearly certificate that needs to be issued by the employer to its employees subjected to the declaration of final tax. Employers are required to withhold taxes from employee’s salary based on the latest TRAIN Law which must reflect in the BIR Form 2316.

ANNUAL INCOME TAX TABLE COMPUTATION

The BIR Form 2316 shall be filed by the employer to the Bureau. Which indicates the total amount that was paid to employees, together with the taxes withheld during the whole calendar year.

SAMPLE BIR FORM 2316
BIR-Form

Supply the Employee’s details, make sure their details are correct especially the period. New hires during the year must reflect the hiring date and not the first day of the previous year. Period To must be December 31 of the previous year unless the employee resigned.

Give the Total Non-Taxable/Exempt Compensation Income (must not exceed Php90,000 during the year), Taxable Compensation Income for the previous year, Supplementary Income are those compensation received by the employee on a case by case.

Make your company’s details available in the Employer’s Information (Present) and Employer’s Information (Previous) if the Employee has his/her 2316 from their previous company.

In the Summary, compute the value as per indicated and based on the records provided.

On the last part of the form, authorized agent and the employee must sign with his/her CTC number, place of issue and amount paid. Then Substituted filing must also be accomplished for those employees who only have one employer and no other source of income during the previous year.

BIR Form 2316 must be submitted January of the following year. BIR usually requires two (2) copies; employee must have one (1) copy and a copy for the employer for filing purposes. Read more about the RMC here.

BE AT EASE WITH THE BIR FORM 2316 PREPARATION!

Never stress out in preparing the form with the QNE Payroll Software where Employee Income and Withholding Taxes are automatically computed. To know more about QNE Payroll System and QNE Accounting System, talk to us and schedule a free demo at 09177104722 or email us at [email protected]

If you are interested in upgrading to a BIR-Ready Online Accounting System, QNE Software PH is offering a 60 days FREE Accounting Software Philippines License. Take this opportunity to explore and discover how QNE can help your business. Signup now.

Form-2316

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