There are actually a number of reasons involving a number of different stakeholders why Form BIR 2316 is such an important filing in the PH compliance framework. The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is provided for general information purposes only and should not be used as a substitute for specific advice. The BIR may review Form BIR 2316 after it has been filed to find out whether an employer of PH has actually calculated and paid the correct amount of payroll/remuneration tax during the relevant calendar year. (Read: Tax Reform 2018: When Can You Expect Changes?) As part of the circular, employees and retention agents/employers have the option to use electronic signatures on BIR forms, even without the prior consent of the BIR. An electronic signature includes digital signatures and other methods. Previously, the requirement was that forms be signed manually or in wet ink in order to be considered valid and binding. It should also be noted that, according to WRC No. 117, if a particular format (e.B.
USB) is used for filing Form BIR 2316, the same filing format should also apply to certain other filings (e.B. Form 2307) during the same period. In 2020, the deadline for filing Form BIR 2316 with the BIR was initially February 28. We understand that this should give the BIR time to update the version of its online module to complete form BIR 2316. I hope you can now see why we say at the beginning of this article that PH employers need to start preparing to file their BIR 2316 form now! Form BIR 2316 must be completed by an employer for each employee receiving salaries, wages and other forms of remuneration, indicating the total amount and taxes withheld for the calendar year. It must be issued to the employee no later than January. 31 of the following year or on the day of the last payment of wages in the event of termination of the employment relationship. This certificate, in turn, should be attached to the employee`s annual income tax return (TNI) in case the employee chooses to file one or is not eligible for replacement filing. Second, Form BIR 2316 also provides employees with detailed information in consolidated form regarding the amount of tax withheld from their salaries that year. Employees can check and verify that the correct amount of tax has been withheld by them and clarify whether their net salaries have been correctly calculated each month.
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. 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). The form must be signed by the employer and the employee via the printed name. 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! Both the employer and the employee are required to sign the form. However, it is the employer, usually the employer`s HR team, or perhaps the employer`s payroll service provider, that manages the entire annual process – from preparation to signing to BIR submission. Form BIR 2316 is also important when employees change employers. If an employee moves from one employer to another employer in the same calendar year, the new employer generally requests Form BIR 2316, which the employee should have received from the previous employer.
The aim is to clarify which taxes have already been withheld by the employee and to consolidate them with the withholding tax obligations under the new employer. For those who want to grow or understand this more clearly, we have broken down all the key points to understand the BIR 2316 form. 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. When you file your current BIR 2316 form, consuls can also see how much you actually earn. This will help them prove to them that you have the budget to travel to their country and money to spend while you are there. It also serves as proof that you are based in the Philippines. Lesson learned: Every time your employer issues your BIR 2316 form, keep your copy in a safe place that you will easily remember. The first page is completed by the recipient and the second page by the donor. The Recipient assumes responsibility for the sequential numbering of each donation receipt and the numbered donation receipt must be distributed within thirty (30) days of receipt of the donation.
No. Although the Tax Return (ITR) and Form BIR 2316 are often used interchangeably, they are two different tax forms. If you are an employer looking for help completing Form 2316, see this article. Alternatively, if you are an employee with questions about 2316, read the FAQ below. Here are some important tips for employers preparing to file LE BIR2316 in January 2022! Hello, I am not in a good relationship with my former employer, but my current employer is asking me about my 2316. Is there a way to get a copy of my 2316 directly into BIR? Thank you very much. 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). Keep in mind that the requirement is that there must be a separate BIR 2316 form for each employee. In addition, each employee is required to sign his form and return it to the employer. The employer must also ensure that all information and entries contained in the form (salary paid, taxes withheld, data, etc.) are 100% correct! If this is not the case, the employer may be exposed to possible audits by the BIR and possible financial penalties in the event of a breach of compliance. Why was Form BIR 2316 revised? The main reason was to make changes to the information fields required for certain exceptions and qualified parents.
Employers are required by law to file your Form 2316 for you. You must follow the data provided by BIR. Your original BIR FORM 2316 and/or photocopy must be given to you no later than January 31 of each year. In short, the obligation and ultimate responsibility to file Form BIR 2316 remains in the hands of the employer at all times! It is the employer who must manage the annualization process, and it is the employer who must ensure that the company has completed the form correctly and that the company has received the signatures of each of its employees. Learn more about how it is submitted, its objectives, as well as bir Form 2316 Frequently Asked Questions. Hello, I have 2316 from.my two employers. What forms do I need to fill out for: A) Self-submission B) Change RDO Employers may sometimes encounter difficulties during the certification process when looking for information and documentation about employees who left the company in the previous fiscal year. Under the current circumstances, this would apply to employees who left the employment relationship in 2021. To help you prepare to file Form BIR 2316, we`ve outlined everything you need to know below! 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. WRC No. 117 of 2021 was issued by the BIR to meet certain provisions of previous BIR regulations (RR No. l6-2021 and RR No. 2-201S). In short, CMR No. 117 of 2021 clarifies that scanned copies or electronic copies of Form BIR 2316 can be submitted to the BIR by employers using a USB flash drive (USB) or other similar storage devices instead of the DVD-R format (a format previously commonly used to submit electronic data/information to the BIR).
February 28 is the deadline for filing Form 2316. Everyone must remember this, because the employer`s failure to produce or pay taxes due on behalf of employees is a criminal offence and punishable. For more information, see the Frequently Asked Questions page below. You will receive a 2316 per employer. If you changed jobs during the year, you will have a 2316 from each employer…