3 Things Employers Need to Do for Year-End Tax Filing Compliance

If you’re a good employer, you’ve probably wondered a few things, such as: how can I keep being a good employer? Paying your employees fair wages, for one! But also, you need to think about employee-related tax payments.

If by now you still haven’t quite figured out everything, don’t worry: we won’t rat you out. We’re here to help! 

As the year comes to a close, all registered employers must accomplish three key things to properly comply with employee obligations. During Year-End Compliance filing for Employers, there are two forms that take precedence: BIR Form 2316 and 1604C. 

For newly-minted employers, what do these forms mean to you? 

In the guide below, you’ll find out about…

BIR Form 2316: Certificate of Compensation Payment / Tax Withheld For Compensation Payment With or Without Tax Withheld

What is BIR Form 2316?

BIR Form 2316 is a Certificate that employers must complete and issue to each employee receiving salaries, wages and other forms of payment that confirms the total amount paid and the taxes withheld during the calendar year.This Certificate in turn should be attached to the Annual  Income Tax Return. For individuals receiving purely salaries, BIR Form 1700 is the correct form to file. However, for taxpayers classified as mixed income earners, BIR Form 1701 is the correct form to file. 

When to File BIR Form 2316?

To be issued to payee on or before January 31 of the succeeding year in which the compensation was paid, or in cases where there is termination of employment, it is issued on the same day the last payment of wages is made.

BIR Form 1604C:  Annual Information Return of Income Taxes Withheld on Compensation 

What is BIR Form 1604C?

In the Philippines, employers are required to compute and withhold a portion of their employees gross compensation before salary disbursement. This local employer-employee agreement is the reason why employers use the BIR Form 1604C. The withholding agent/employer may come in different types; individual, corporation, government agency, partnership, trust, partnership, and more. Any form of juridical entity that withholds taxes on compensation provided to employees are required to file the BIR Form 1604C. 

When to File BIR Form 1604C?

On or before January 31 of the year following the calendar year in which the compensation payment and other income payments were paid or accrued.

1. Submit Signed Copies of BIR Form 2316 to the BIR
2. File BIR  Form 1604C and Submit Employee Alphalist to the BIR
3. Distribute BIR Form 2316 to Your Employees

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