BIR Form 2316 – Employer Filing

Published: April 22, 2019


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.

Computation of Annual Income Tax based on the Latest TRAIN Law
BIR_Tax Table_Annual
Provide the exact details as per the year the annualization is done.

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.

BIR Form 2316

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.

Deadline and Submission

BIR Form 2316 must be submitted January of the following year. BIR requires 2 copies, Employee must have 1 copy and a copy for the employer for filing purposes.

Be at ease for 2316 Preparation!

With the QNE Payroll System , Employee Income and Withholding Taxes are automatically computed. For a hassle-free Payroll Transactions and Report Generation, BIR Form 2316 and other Governmental Reports are now available in  QNE Payroll System .