It is important to know the composition of BIR form 2316 otherwise known as the Certificate of Compensation Payment or Income Tax Withheld.
The BIR form 2316 contains the following information:
PART 1: Employee Information
- Year - Calendar year
- Period From (MM/DD) To (MM/DD) - payroll period coverage from the present employer
- Taxpayer Identification No - Employee's tax identification number
- Employee's Name - Full name of the employee
- RDO Code - Revenue District Office number of employee
- Registered Address - Address of employee
- Date of Birth - Birthdate of employee
- Contact number
- Statutory Minimum Wage rate per Day - rate per day
- Statutory Minimum Wage rate per Month - rate per month
- Minimum Wage Earner (MWE) whose compensation is exempt from Withholding Tax and not subject to income tax - mark x if applicable
PART 2: Employer Information (Present)
- Taxpayer Identification No - present employer's tax identification number
- Employer's Name - present employer's name
- Registered Address and Zip Code - present employer's address and zip code
- Type of Employer - If Main Employer or Secondary Employer
PART 3: Employer Information (Previous)
- Taxpayer Identification No - previous employer's tax identification number
- Employer's Name - previous employer's name
- Registered Address and Zip Code - previous employer's registered address and zip code
PART 4A: Summary
- Gross Compensation Income Present Employer - item 36 plus item 50
- Less: Total Non-Taxable/Exempt Compensation Income from Present Employer - item 36
- Taxable Compensation Income from Present Employer - item 19 less item 20 (From item 50)
- Add: Taxable Compensation Income from Previous Employer
- Gross Taxable Compensation Income - sum of items 21 and 22
- Tax Due
- Amount of Taxes Withheld - from the Present Employer and Previous Employer
- Total Amount of Taxes Withheld as adjusted - Sum of items 25A and 25B
PART 4B: Details of Compensation Income and Tax Withheld from Present Employer
A. Non-Taxable/Exempt Compensation Income
- Basic Salary including the exempt P250,000 & below or the Statutory Minimum Wage of the MWE)
- Holiday Pay (MWE) - rate worked during holidays
- Overtime (MWE) - rate worked beyond working hours or overtime payment
- Night Shift Differential (MWE) - amount worked during night differential
- Hazard Pay (MWE) - hazard payment is given to employees for performing hazardous duties if applicable
- 13th-month pay and other Other Benefits (maximum of P90,000) - 13th-month and bonuses given to employees
- De Minimis Benefits - small values provided by the employer to employees merely as a means to promote health, goodwill, contentment, or efficiency.
- SSS, GSIS, PHIC & Pag-ibig Contributions & Union Dues (Employee Share only )- Mandatory government premium for present employer
- Salaries & Other Forms of Compensation - Paid unused leave not exceeding 10 days or other benefits that are non-taxable which can not be classified as de minimis
- Total Non-Taxable/Exempt Compensation Income - Total of items from 27 to 35
B. Taxable Compensation Income Regular
- Basic Salary- Wage rate of non-MWE
- Representation- allowance
- Transportation- allowance
- Cost of Living Allowance- Allowance given to an employee on top of basic salary
- Fixed Housing Allowance- Allowance
- Others- if they have other allowances aside from the above items
- Commission- sales commission
- Profit Sharing- if any
- Fees including Director's Fees- Professional fees of employees
- Taxable 13th-month pay and Other Benefits- 13th-month pay and bonuses in excess of P90,000 ceiling
- Hazard Pay- hazard payment is given to employees for performing hazardous duties if applicable
- Overtime Pay- Payment in excess of regular working hours
- Others- payment other than items 43-48
- Total Taxable Compensation Income- total of items from 37 to 49B
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