Tuesday, September 11, 2012

Why am I required to submit a 2316 and 1902 by my employer?


If you already have a TIN & do not have a copy of your 1902 application,
provide a copy of your TIN card instead
WHAT IS BIR FORM 2316:

The 2316 is "Certificate of Compensation Payment/Tax Withheld". It is a certificate issued by ones employer for taxes that they are required to withheld every month. Which they should file and remit each month.


If you are employed for an entire year to only one employer. Meaning you did not jump to another employer for an entire year. Then that employer is required to give you this 2316 certificate at the end of a taxable year.

For example, you were employed for the entire year of 2011. Then your employer should give you this 2316 before the April 15th deadline of the succeeding year which would be 2012. So that employer should give their employees this 2316 within that time. Most probably within January to March. 

TRANSFERRED TO A NEW EMPLOYER:

Now if you transferred to another employer then you should be aware that before you do this. You need to get your 2316 certificate from your original employer or previous employer. As this will be required by your new employer. 

As they will need this for their record and so will you so keep a copy for your file.

PROBLEM WITH GOING AWOL:


OPTIONS WHEN AN EMPLOYER REFUSES TO GIVE YOUR 2316:

Now if an employer refuses to grant or give you this 2316 certificate. You can file a complaint in writing with the BIR branch which handles the business address of your employer or previous employer. 

You can then provide a copy of this complaint with your new employer. So that they would know that your previous employer refuses to give you this certificate. Of course you should make a formal letter to inform your employer on this matter and indicate that a copy of the complaint is attached for their consideration.

In this scenario, due to the absence of your 2316 that your former employer should have given you. The only option your new employer may take is to start you off as if you had no previous employment. Since there is no 2316 certificate of your previous employer to attest on the months you worked with them.

Thats the reality of this kind of things. 

ADVISE FOR PEOPLE WHO INTEND TO RESIGN:

Now for people who intend to resign. Make sure you make a formal letter of your resignation. Give this at least a month earlier so you can work on your office required clearances and ask your office accounting department or section of your office that authorizes the release of your 2316.

Now there are a considerable number of EMPLOYERs out there and the people handling the ACCOUNTING who unfortunately tell their departing employees that they cannot issue the 2316 due to their misguided reasoning that you were only employed for 3 months or less. This is not true.

Take note even if you were only employed for a month and they withheld tax from your pay which is indicated in your pay slip. 

The EMPLOYERs are required to provide their departing employees that 2316 certificate.

As previously said the NEW EMPLOYERs will ASK this 2316 certificate from their NEW EMPLOYEEs on the months they worked with their FORMER EMPLOYERs. As the NEW EMPLOYERs will need this record for they in turn will record the taxes they will withheld on REMAINING months of the year.

Now for NEW EMPLOYEEs, when you provide a copy of your 2316 to your NEW EMPLOYER. Make sure you RETAIN a copy for yourself as you will need it as attachment when you file your ITR thru BIR Form 1700.

For at the end of the taxable year. For example 2012. Come January before the April 15th deadline. The NEW EMPLOYER is required to give this 2316 certificate to their employees. Since the premise is on those EMPLOYEEs who have more than one employers.

Currently, under the SUBSTITUTED FILING policy,  if you have only one employer for the entire year or taxable year. Even if you don't have it stamped and checked with your BIR branch that 2316 will serve as a valid ITR of an employee. 

Now if you have two or more employers for an entire year. Then you are required to file your ITR using thru BIR Form 1700   with your BIR branch so they can check the details and have it stamped.

Click the BIR Form 1700 to view this document. In page 2 under "Schedule I" thats where you will indicate the name of your employers and the COMPENSATION INCOME you got indicated in your 2316. 

The 2316 provided by your EMPLOYERs will be your basis to input the amount of income and tax they withheld. All the values you require to input in the  BIR Form 1700 is in your 2316 certificate.

You can also use the INTERACTIVE BIR Form 1700. You just need to download Interactive PDF format of BIR form 1700 and the required PDF reader. Go to this link here and click "Interactive" to download the form. Together with it are the instruction on how you can use it by downloading the required PDF reader.

It is interactive in the sense when you input the COMPENSATION INCOME for each EMPLOYER under Schedule I. The form will automatically compute the GROSS COMPENSATION INCOME under Part II No. 24 of the said form. 

This can then be printed using FOLIO SIZE (13") long bond paper. Not exactly the Legal Size which is 14".

OPTION ON BIR FORM 1902 IF YOUR EMPLOYER REQUIRES THIS:

The BIR form 1902 is an Application for a TIN. If you already have one then you don't need to submit it, especially if you no longer kept a copy of it with you. Nor can you get a copy of your 1902 application with your RDO. For once you are given your TIN thats it. Your 1902 request will not be stored or filed.

Your next option is you can request a TIN card for that same purpose. To prove that you have an existing TIN that is assigned under your name.

Now on the other hand if you don't have a TIN then the correct form is 1902 so you can apply for a TIN. 

Don't make the mistake for submitting another application for TIN as we are not allowed to have multiple TINs. One can be penalize for as much as 1000 pesos. 

BIR FORM 2305 UPDATE of ADDITIONAL EXEMPTION AND EMPLOYER:

Now if you already have a TIN this should be the FORM to use the BIR Form 2305. This form is used to update your registration if you got MARRIED or you have ADDITIONAL DEPENDENTs to declare.

And another use of this form is to update your registration on the name of your new EMPLOYER.

The form provides a space for the EMPLOYER INFORMATION where the authorize representative of your new company should fill out. So it should not be you who should fill this out but your EMPLOYER's authorized officers.

Another need for this is that your NEW EMPLOYER will base their withholding tax computation on this document. So indicate your Qualified Dependent children if you have.

WHERE TO FILE:


Please know that you can only pass these BIR Form 2305 or 1902 with the BIR Branch or Revenue District Office (RDO) where your TIN is currently registered.

So do this first, don't file just with any BIR branch or your effort may just go to waste. Call the BIR Contact Center 981-8888 or 981-7250 / 7251 / 7252. Ask which RDO your TIN is currently registered. Ask your EMPLOYER which RDO they are likewise registered.

So if your RDO is not the RDO of your current EMPLOYER then you may need to TRANSFER your TIN first before passing your 2305 form to RDO where your current EMPLOYER files their taxes. So click on TRANSFER your TIN so you can read the post on how you can do this.


8 comments:

  1. Hi can you please give me some advice on what should I do regarding my bir 2316., my new employer is asking for my bir 2316 from my previous employer. The problem is I did not include my previous employer in my resume. I filed my resignation last April 2012, but I didn't process my clearance since I have to pay the cash bond of 20000 if I didn't finish the 6 months contract. I just work in that company for 5 months. In my resume, the previous employer that I put was my work from other company which I worked for 1 year from Nov.2009-Nov.2010. My question is, will it be alright if I'll just pass my 2316 from my employer which I worked for a year? Will it be a problem if I did not give the newest 2316? Please help me.

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    2. Hi i have the same question as yours. Were you able to get a suitable answer to your question? If so, please let me know on what's the best thing to do? I seriously need help as i have plans on working again.

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  2. need some help my husband started working with this co. June 25, 2012 and ended last January 15, 2013 they have issued the COE but the 2316 as well as tax refund is not given to him up until now is there any action we can do against them coz looks like they are dont have intentions of providing it to us.

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  3. Hi Sir,

    I would just like to ask regarding my BIR Form 2316. I am previously employed from Company A (Jan 2011-November 2013) then now i am working to Company B, (December 2013-present). For the payment of tax due for 2013, Company B is requiring me po to submit a copy of the latest (2013) 2316 Form which i will get from Company A, but Company A said that they can provide me the 2013 2316 form latest February or March 2013 pa po. What shall i do po? Or what shall i say to Company B. Does this affect my salary? Please help po.

    Thank you

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  5. My new employer requested for a copy of 2316 but my previous employer told me that they were too busy to entertain my request.

    What if i found out that my previous employer did not remit my income tax for the period of jan-jun 2014? What should i do?

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  6. You all need to get Tax Attorneys. The system in the Philippines is so corrupt that they try to control every move we make. The government want full control of everyone. Employment should be "at-will". Employees should be able to resign without notice and the employers should be able to do the same. No wonder, many of us want to work abroad so they don't have to worry about all these complicated process that our government has. It's despicable!

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