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Tax Updates

RR 11-2013: Submission of the Certificate of Compensation Payment/Tax Withheld (BIR Form 2316) for Employees Qualifying Substituted Filing

On May 20, 2013, the Bureau of Internal Revenue issued Revenue Regulation (RR) 11-2013 entitled Filing/Submission of Hard Copy of the Certificate of Compensation Payment/Tax Withheld (BIR Form 2316) Covering Employees Who are Qualified for Substituted Filing, thereby Amending Revenue Regulations (RR) No. 2-98, as last amended by RR No. 010-08.

RR 11-2013 is issued in order to prescribe additional forms/documents to be filed by withholding agents in compliance with their duty to report income of their employees under the law.

Employer-employee relationship makes the employer a withholding agent in accordance with RR No. 2-98.  As a withholding agent, it needs to withhold certain tax on the compensation of the employees and issues a withholding tax certificate, in this case BIR Form No. 2316.  The original and duplicate copy of BIR Form No. 2316 is, as rule, given to the employee.

RR No. 11-2013 clarifies the following:

1. In cases covered by substituted filing, the employer shall furnish each employee with the original copy of BIR Form No. 2316 and file/submit to the BIR the duplicate copy not later than February 28 following the close of the calendar year.

2. Employers of Minimum Wage Earners (MWEs) are still required to issue BIR Form No. 2316 (June 2008 Encs version) to the MWEs on or before January 31 of the following year.

3. Failure (unless due to reasonable cause and not willful neglect) to submit/file BIR Form 2316 within the time required by RR 11-2013 will hold the employer/withholding agent liable of P1,000 for each failure, aggregate amount should not exceed P25,000.

4. Failure for two (2) consecutive years to submit/file BIR Form 2316 within the time required by RR 11-2013 shall be liable in addition to other penalties provided by law, upon conviction thereof, be punished by a fine of not less than P10,000.00) and suffer imprisonment of not less than one (1) year but not more than ten (10) years.

You can download a copy of the Revenue Regulations No. 11-2013 using the link below.

Revenue Regulations No. 11-2013

You can download a copy of BIR Form 2316 using the links below:

BIR Form 2316 is a Certificate to be accomplished and issued to each employee receiving salaries, wages and other forms or remuneration by each employer indicating therein the total amount paid and the taxes withheld therefrom during the calendar year.

This Certificate in turn should be attached to the Annual Income Tax Return (BIR Form 1700 – for individuals receiving purely compensation income, or BIR Form 1701 for individuals with mixed income).

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About leecpa

Orlando Calundan is a Certified Public Accountant. He has exposures in audit of financial statements of entities in various industries such as real estate, food (quick service restaurants), manufacturing, service organizations and BPOs, automotive, holding/investment companies and more. He also has exposure on internal audit engagements. http://ocalundan.info

Discussion

7 thoughts on “RR 11-2013: Submission of the Certificate of Compensation Payment/Tax Withheld (BIR Form 2316) for Employees Qualifying Substituted Filing

  1. Hello

    I would like to inquire about how the Income of an employee, who is a Minimum Wage Earner (MWE) for certain months and a NON-MWE for the rest of the year, be presented in his 2316 Form.

    For instance, an employee is MWE from January to August, and NON-MWE from September to December.

    In his 2316 form, may I know what should be included in the following fields;

    1. #32: Basic Salary/Statutory Minimum Wage
    a. Should his SSS/Philhealth/Pagibig Contributions from January to August be deducted from his Non Taxable Basic Salary (January to August Basic Salary) or not?

    2. #39: SSS PHIC Pagibig Contribution
    a. Is this his total contributions from January to December (MWE and NON-MWE months) or just his Contributions from September to December (NON-MWE months)?

    3. # 41: Total Taxable/ Exempt from Compensation
    a. What is the formula of this Value in relation to values in fields 32 to 40

    4. # 42: Basic Salary
    a. Should his SSS/Philhealth/Pagibig Contributions from September to December be deducted from his Total Taxable Basic Salary (September to December Basic Salary) or not?

    5. # 55 Total Taxable Compensation Income
    a. What is the formula of this Value in relation to values in fields 42 to 54B

    Thank you and hoping for your reply on the above questions.

    Posted by Mark | February 5, 2014, 8:42 am
  2. Hi sir,

    Thank you for the information you posted. Try ko lang po kung pwede sana humingi ng tulong. I had two employers for year 2013. My previous employer had issued me my 2316 and my current employer is consolidating it. But they say that I owe Php 19,000.00 worth of taxes. The explanation they gave me is that my previous employer has already used my tax exemptions and that they can no longer use it. I am not sure if this is correct, I am not an accountant and know very little about BIR 2316.

    Posted by bryan | April 30, 2014, 9:29 am
  3. Hi Sir, I would like to inquire regarding the issuance of 2316 to employees. My former employer does not allow us to get a copy of 2316 because my clearance is not yet complete. However, my current employer needs the file to consolidate. Does my former employer have the right not to provide me with a copy of my 2316?

    Posted by kesiang | November 21, 2014, 3:16 am

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