If an employee has been fired by an employer or has been fired themselves, form BIR 2316 usually has to be issued at the time they receive their last salary, also known as a salary arrears in the Philippines. Although both the employer and employee are required to sign the form, it is ultimately up to the employer to file Form BIR 2316 with the BIR. Taxpayers and tax filers must ensure that they use the correct file format (for all documents/data, etc.) and the correct naming conventions prescribed by the BIR when filing. So contact your accountant or accountant to understand and apply these requirements. Do you own, run or run a business here in the Philippines? Did you have employees in 2021? If this is the case, you will need to begin preparations for the annual filing of Form BIR 2316. The first submissions are expected in January 2022! In summary, Form BIR 2316 is an annual tax return form that must be filed with the BIR by all companies in the Philippines that have hired employees at any time during the previous calendar year. First, the filing of Form BIR 2316 by PH employers allows the BIR to apply and monitor the compliance activities of PH companies each year from a payroll tax perspective in a leaner and more consolidated manner. We offer payroll services in addition to our core outsourced accounting, bookkeeping and financial services. By hiring CloudCfo, you can be sure that the information to calculate the information on your BIR 2316 form is ready, accessible and, most importantly, accurate! The employer is required, among other things, to record the total amount of remuneration paid to each employee in the previous calendar year and the corresponding taxes withheld on the employee in the same calendar year. Here are some of the key details to include on Form BIR 2316. For the full list, click here.

I would like to ask if I can request a copy of my 2316 from my current employer, even if I only started with them for travel purposes in March 2019? For more information on taxes related to the compensation of PH employees, see our previous article on withholding tax on compensation. Employees who meet certain requirements are not required to submit a KNA. Form BIR 2316 filed by their employers serves as a TNI (i.e., substituted filing). According to Revenue Regulations (RR) No. 2-98, as amended, the individual taxpayers who are entitled to the substituted return are: 1. those who receive pure earning income in any amount, 2) those who have only one employer in the Philippines for the calendar year, and 3. those whose income tax has been correctly withheld by the employer. Qualified employees must express their intention to file a replacement product by signing the declaration portion of Form BIR 2316 in triplicate and returning it to the employer. The employer must submit the copy of the form to the BIR along with the certified list of qualified employees, which reflects the employee`s name, tax identification number (TIN), compensation income, tax due and withholding tax. The employer prepares form BIR 2316 in triplicate, which is distributed as follows: Original â Copy of the employee; Duplicate a copy of the BIR; and triple copy of the employer, keep for 10 years. You should only receive a copy of this BIR certificate once a year.

However, if you leave or terminate your current employment, you will receive your BIR 2316 form and employment reference on the day your subsequent salary is released (usually one month after the date of resignation or termination of employment). Have you lost your copy? They should give you a copy on the day your final compensation was received from your former employer. Unfortunately, according to the BIR, all records, such as e.B. 2316 records of individual employees, go directly to their warehouse after receipt by the respective Regional District Offices (DSBs). It`s best to ask your former employer. On 26 February 2021, the BIR distributed Tax Memorandum Circular (RMC) No. 29-2021, which allows the use of electronic signatures on certain BIR forms/certificates, including Form BIR 2316. This was in response to the continued impact of the COVID-19 pandemic and compliance with Republic Act No.

11032 or the Ease of Doing Business and Efficiency of Government Service Delivery Act 2018. Employers complete Form BIR 2316 and submit it to the BIR, then provide a copy to each employee. The deadline for filing Form BIR 2316 has now been extended – the new filing deadline is March 31, 2020. This extension was confirmed by Income Memorandum Circular No. 17 2020, issued on 26 February 2020. So, if you are an employer, make sure you use the correct version of form BIR 2316, which you can find here. The correct version should say ”January 2018 (ENCS)” in the upper left corner. The form can also be completed via the BIR online module. However, the module version has not yet been updated on the BIR website and is not available.

Form Bir 2316 must be prepared, completed and sent to all affected employees no later than January 31 of the year following the year in which the remuneration was paid to the employees (and the tax on the remuneration withheld). The information, which will be available up to 31. January 2022 and must be spent on employees, so refer to compensation and taxes withheld for 2021. We have described the process of filling out this form here. We hope this helps! The BIR also recently issued a new Revenue Memorandum Circular explaining the method by which PH companies can file Form BIR 2316. In this article, we explain the relevance and importance of payroll annualization and Form BIR 2316 in the context of Philippine tax compliance, identify the details and comments required for production, and examine the impact of the new BIR Memorandum Circular on production requirements! If your company has not yet started preparing this quote, it is advisable to start without delay! There is a lot of information to collect and complete. You also need to get in touch with each employee. In addition, the employer must ensure that all information, especially concerning the amount of tax withheld, is correct! A separate BIR 2316 form must be created, completed and issued by employers for each employee who received a salary, wage or other form of remuneration from the employer in the previous fiscal year – in this case, 2021. The form must indicate the total amount of remuneration paid to each employee and the total taxes withheld by each employee during the previous calendar year, in this case again in 2021. According to the RR, all taxpayers must manually file a recordable multi-purpose digital disc (DVD-R) containing the electronic copies of Form BIR 2316 in pdf format with the file names listed alphabetically in the DVD-R. The file name must include the employee`s last name, TIN, and tax period (e.g.B.

Dela Cruz_123456789000_12312021). In addition, the DVD-R must be marked in the format prescribed by the BIR, accompanied by a notarized affidavit attesting that the electronic copies contained in the DVD-R are complete and accurate copies of the originals. Form Bir 2316, known by its longer name as the Certificate of Payment of Compensation/Withholding Tax, must be prepared and filed by PH employers after first obtaining the required information and approvals from each of their individual employees. Once the 3 original BIR forms 2316 for each employee have been submitted to the BIR, the BIR will keep one copy, the employer will keep another copy and each employee will receive their own copy. Your former employer is required to issue you a 2316 for this year because they are required to do so by law and they are entitled to obtain a document that they submitted and paid the taxes they withheld from you on your behalf. However, if they haven`t given you any, raise the BIR 11-2013 tax regulation. Then call the BIR for next steps if they still don`t give you any. A certificate to be issued to any employee receiving salaries, wages and other forms or allowances from each employer, indicating the total amount and taxes withheld during the calendar year. This certificate, in turn, must be attached to the annual income tax return (form BIR 1700 – for persons receiving purely compensatory income, or form BIR 1701 for persons with mixed income). .