BIR Form 2316: guidelines and instructions (2020)

BIR Form 2316: guidelines and instructions (2020)

Filling the BIR Form 2316 can be a straightforward exercise if you take the time to learn how it is done. Looking at BIR Form 2316 meaning and the detailed guidelines and instructions would hold you in good shape to accurately understand it. Remember, this is a reflection of tax payment. It should, therefore, be done cautiously and in the right manner for reference purposes.

BIR Form 2316

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The BIR Form 2316 is proof that taxes have been deducted and withheld from an employee's salary and remitted to the BIR by the employer. It is one of the most crucial documents that employers and employees in the Philippines must be familiar with. The BIR Form 2316 sample filled from fellow employers would be a good starting point. However, some people may not be able to access a filled form.

What is BIR Form 2316?

It is a financial document that shows an employee’s total salary and the equivalent taxes withheld by the employer during a given financial year. It must be filed with the BIR by employers in the Philippines every calendar year. This form identifies the taxes withheld from and compensation paid to each employee during the previous fiscal year.

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BIR Form 2316 purpose

Some of the reasons why this document is essential in the country are as follows;

  • It indicated the financial ability of someone, which is essential for a visa, loan, scholarship, credit card, and other types of application.
  • It is a financial document to meet the requirements for entry into government offices and private institutions.
  • Employees submit it to their new employer for accurate calculation of their yearly income tax.
  • Employees use it to know if their taxes have been withheld correctly and remitted to the BIR by their companies.

How to get BIR Form 2316

You can download an unfilled pdf copy from the BIR website. However, you can as well as receive it from your employer. Depending on the number of companies you have worked for, each one of them should issue you with this particular document.

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Alternatively, a completed Form 2316 for your employees can be generated using the BIR’s Alphalist Data entry and validation module version 6.1.

How to get BIR Form 2316 from previous employer

Your previous employer will give you with the BIR Form 2316 tax refund upon request. However, it is crucial to note that there are two occasions when an employer will release it to you. Either on or before 31st of January every year. In cases of termination of employment, it is issued on the same day the last payment of wages is made.

You must ask for this document from your previous employer when moving to another employer. The current employer will be able to fill your annual income tax returns on your behalf.

How to fill up BIR Form 2316

The process of filling the document is straight forward. It has about four sections to be completed. The BIR Form 2316 guidelines and instructions are as follows.

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How to fill BIR Form 2316

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At the top part of the document, write the year and period, and proceed. However, while doing so, you should understand that for all the employees recruited by the company before the current financial year, their period "FROM", should be recorded as 1st of January. Otherwise, indicate the specific date of hire of the new employee that year. The period "TO" must either be the date of resignation or the 31st of December for the current workers.

Part I

This section requires an employee's information.

  • It has items 3, 4, 5, 6, 6A, 7, and 8, that should be filled. Other pieces of information such as 6B, C, and D are only be filled if applicable.

Part II

The section is about employer's information.

  • Fill units 12, 13, 14, and 15. Some of these details are obtained from the BIR Form 2303. If the worker is a full-time worker, select Main Employee, if it is on a part-time basis, mark Secondary Employer.
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Part III

  • For a new employee, the employer will be required to provide the details of their previous employer in this section. The information about his former employer will be found on their BIR Form 2316 from heir previous employer. Fill items 16, 17, 18, and 18A.

Part IV

This section is divided into two areas. They constitute Part IV (A) and (B).

  • Part VI (A) has sections 19 to 26. It provides a financial summary of the employee.

Items 19-21 requires the field where the figures should come from and proceed to fill items 22 to 26.

  • Part VI (B) - Taxable and non-taxable portions

It has units 27 to 50. However, items 27 to 30 are only filled if the employer is a minimum wage earner. Otherwise, you are required to leave this section unfilled.

Section 31 to 36 requires the following items.

  • The 13th-month pay and other benefits - Indicate the 13th-month salary and other non-recurring gains for the year. The value should not exceed P90,000.
  • De minimis benefits - These are the de minimis bonuses given to the worker in the year. They are shown in this section.
  • PAG-IBIG, SSS/GSIS, and PHIC - It is the total of all the contributions of the employee.
  • Salaries and other compensation - It is the total of all the non-taxable allowances received by the worker.
  • Basic salary - It is the total of the salary of the worker without item 34 on the document. The contributions to item 34 are subtracted from the salary because it is non-taxable.
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At the bottom of the document, you will find the last part that has items 51 to 54.

Component 51 requires your authorized signatory, and item 52 requires the signature of the employee. Additionally, if the employee qualifies for substituted filing, then proceed to fill items 53 and 54.

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How to fill up BIR Form 2316 for minimum wage earner

When doing the BIR Form 2316 computation for minimum wage earners, you will be required to fill components 9 to 11 and Part VI (B) items 27 to 30 if the worker earns a minimum wage. Remember these are the parts that were left blank in the above procedure.

Who signs BIR Form 2316

The income tax return BIR Form 2316 is signed by both the employee and his employee. It is provided for in items 51 and 52. After being signed, it is filed with the Bureau of Internal Revenue by the employer. The BIR Form 2316 deadline is the 31st of January each year.

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The procedure of filling the BIR Form 2316 is straightforward. A proper grasp of the requirements would assist in filling it quickly and conveniently.

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