FireStats error : Database error: Table './taxacct2_taci/wp_firestats_pending_data' is marked as crashed and should be repaired

MySQL Version: 5.5.37-log
SQL Query:
INSERT DELAYED INTO `wp_firestats_pending_data` ( `timestamp`, `site_id` , `url` , `referrer` , `useragent` , `ip`, `type` ) VALUES ( NOW(), '1', 'http://taxacctgcenter.org/features-of-withholding-tax-on-compensation-in-the-philippines/', '', 'CCBot/2.0 (http://commoncrawl.org/faq/)', '54.227.141.230', NULL )
Landline : (+632)523-0066 •(+632)348-2193
Mobile : (+63)922-856-2358 •(+63)917-822-2358
Email : info@taxacctgcenter.org
Announcements
05
July

8 Features of Withholding Tax on Compensation in the Philippines

Withholding tax on compensation is an approximate of income tax liability on compensation required to be withheld by the employer upon every payment or accrual or recording of salaries and wages in its books of accounts. It has been said that withholding tax has been a good contributor of internal revenue in the level of individual taxpayers perhaps because the employer automatically deducts the tax upon every payroll and that most sole proprietors are on small scale and once it grows, corporate entity conversion comes into play.

For you to further understand the withholding tax on compensation, let us discuss some of its features to serve as a guide for your application.

1. Applies to employer-employee relationship.

For this withholding tax on compensation to apply, you must establish the fact that there is an employer-employee relationship between the payor and the payee. In its absence, other tax type may apply such as expanded withholding taxes or final withholding tax.

Example: Mr. A rendered personal services to Company B who paid P100,000.00. What tax would apply? If Mr. A is an employee, withholding tax on compensation applies at the rate of 5-32%. If Mr. A is an independent contractor, then expanded withholding tax will apply at 10%/15% if services rendered refer to a professional service, or 2% if a prime contractor. If Mr. A is a non-resident alien and services were rendered in the Philippines, then, 25% final withholding tax applies.

Under the Labor Code of the Philippines, the following are the elements of employer-employee relationship:

  • Selection and hiring of employees by the employer;
  • Payment of wages by the employer at agreed intervals and basis – hourly, daily, weekly, monthly, by piecework, or at any reasonable basis;
  • Power of dismissal by the employer under established criteria and upon valid grounds; and,
  • Power of control of the employer as to the means and methods of doing the work

In the absence of any of the four (4) elements, there could be no such employer-employee relationship and you cannot apply withholding tax on compensation. Common examples of this are the freelancers, online writers, and independent service providers.

2. Employee must be a natural person.

In business law, you will remember that compensation is a legal term used to refer to the fee of the service provider from another person without regard to their personalities – natural or juridical. For tax purposes however, the payee or recipient must be a natural person only in order for the withholding tax on compensation to apply. The reason is that withholding tax on compensation is an advance income tax of individual taxpayers receiving compensation income. Corporations and juridical entities falls on another income taxpayer classification – corporate income taxpayer, so they could not be applied withholding tax on compensation. Instead, you may be subject to expanded withholding tax depending on the nature of payment and applicable tax rate.

3. Employer must be a resident of the Philippines.

The reason is simple, the Philippine tax authorities – Bureau of Internal Revenue (BIR) has no jurisdiction over non-resident aliens and non-resident foreign corporations. In case of non-compliance, BIR may not be able to go after them for the consequences despite the presence of some bilateral agreements the Philippines has entered into with some foreign governments and international bodies. Besides, income from services is taxable in the place where the service is rendered and employees rendering work in the Philippines are taxable herein so corresponding income tax should be collected in the Philippines by local employers. In the case of overseas manpower agencies, their employers are the foreign companies and as such you cannot require them to withhold taxes. In case of short-term employment of non-resident citizen, then, the employee himself is required to report and pay income taxes and the foreign employer is still not required to withhold Philippine withholding tax on compensation. This is, however, without prejudice to the obligation of the foreign employer to withhold the withholding tax imposed by their foreign government.

4.  Compensation must be paid or payable in cash or in kind.

For employers, obligation to withhold is upon payment of salaries and wages or upon accrual where they record the salaries expense in its books of accounts. For employees, however, taxability is upon actual receipt of the salaries, whether in cash or in kind. For employees, you follow the cash basis where you tax income from compensation upon receipt or collection so they will avoid making advances from personal funds for paying taxes on salaries not yet received.

5. Taxable amount is the gross compensation received in furtherance of employer-employee relationship.

As a general rule, gross taxable compensation comprises of anything that the employee receives by virtue of the employer-employee relationship and the name assigned to it is immaterial – salaries, wages, allowances, fees. Exception to this is those provided for by law – e.g.statutory minimum wage exemptions; or those provided by the rules and regulations – de minimis benefits; or provided by tax treaties with Philippines – e.g. the 90-day rule of the RP-US Tax Treaty. As long as there is employer-employee relationship, payments of the employer to the employee are presumed to be compensation, unless, proven otherwise like payment of advances, loans to employees, fringe benefits subject to fringe benefits tax, and the likes.

6. Amount withheld is deductible from employees income tax liability

As mentioned earlier, withholding tax on compensation every payroll is only a reasonable estimate of employees income tax liability and does not constitute accurate and full payment. At the end of the year, the employer is required to make annual computations of total compensation provided to each and every employee and the applicable total income tax liability to be compared to the total withholding taxes on compensation made during the year. If annual income tax due is higher over withheld taxes, employee is compensation as of January the following year is deducted by the entire amount of income tax due. For over withholding, the employee is refunded. I am pretty sure, employees would be happier for refund than additional tax liability.

If you are a pure compensation income earner, then, the employer’s annualization would constitute your annual income tax return under substituted filing. If you have other taxable income, such as from trade or business or practice of profession, then, you will have to file annual income tax returns where you will need to declare your compensation for income tax computations, and deduct the withheld taxes based on the BIR Form No. 2316 issued by your employer/s.

7. Employer is required to file tax returns and reports regularly

Since our tax system is based on voluntary compliance and pay-as-you-file (not pay as you like), employers are required to file monthly withholding tax returns-BIR Form No. 1601C, annual summary reports like BIR Form No. 1604CF with attached Alphalist of employees, and provide each employee a Certificate of Withholding Tax Withheld on Compensation (BIR Form No. 2316) annually or upon separation or termination of employment. Failures of the employer to comply the said reports are subject to penalties.

8. Withholding tax rates may vary depending on the tax classification of the employee

For citizens and resident alien employees, the withholding tax rates are based on the withholding tax table with rates ranging from 5% – 32% after considering their annual personal exemptions – P50,000 basic personal exemptions regardless of status, and P25,000.00 for every qualified dependent child of not more than 21 years of age up to maximum of four (4) or P100,000. For non-resident aliens not engaged in trade or business, the rate is 25% based on gross compensation and the same is final withholding tax. For special alien employees of special entities (ROHQ, RAHQ, OBU, etc), the rate is 15% based on gross compensation and the same is final tax.


Disclaimer: This article is for general conceptual guidance only and is not a substitute for an expert opinion. Please consult your preferred tax and/or legal consultant for the specific details applicable to your circumstances.


Related Services

Quality Seminars, Trainings and Workshops. We conduct tax seminars and workshops on withholding tax such as the following:

Tax Management and Compliance Consultancies. With our tax services, we can assist you ensure tax compliance and in the management of such continuing compliance. Proper compliance would bring about tax savings form avoiding being penalized to tax minimization strategies. Likewise, we could assist you in securing a BIR ruling confirming the applicable tax exemptions.(Post viewed 20689 times)

Comments

  1. maricor says:

    When you withdrew from employment, is it logical that you may opt to consider all taxes withheld in the issuance of your W-2 instead of having re-computation for the purpose of determining how much is refundable from those withheld from you?

    In other words, you chose to reflect it all in your form 2316.

    I suppose it is advantageous in a way to the employee. The employee can obtain a higher credit against his ITR. Am i correct?

    Kindly assess further.

    1. TaxAcctgCenter says:

      Yes, I agree with the approach. If the employee would expect to earn more taxable income for the rest of the year then the 2316 would fully be used up so it becomes just a matter of cash flow. If no such expectation, then, refund would be a better option.

  2. Melvin Hilbero says:

    HI, I just transferred to a new company last Sept. My previous employer provided me an ITR covering Jan-04Jun12 as my new employer requested an ITR to annualize my taxation for them. What does this annualization mean? Also my salary was retro as I was not included in 2nd half Sept12 cut off. SO my first salary was this Oct and my tax is 12k. That’s too much. I don’t understand why that big? My previous employer only charge me 2500-3000 w/h tax per half. Please advise.

  3. TaxAcctgCenter says:

    Withholding tax on compensation is between 5-32% based on the withholding tax table. In your case, yes, it seems so surprising that it jumped to 12k a half from 2.5/3k a half in your previous employer. I suggest you clear with your HR or finance department the details of the computation to see whether it was in order.

  4. Joel says:

    What kind of certification can I get from my company to show my salaries and taxes withheld for the current year.other than the COE? I am still connected with the company and I was told that the BIR Form 2316 can only be issued January next year. I need a BIR certification to get a loan from the bank.

  5. princess says:

    hello, i would like to clarify if the minimum wages is 426.00? bcuz my boss decided to make it 427.00 so they can deduct tax from my salary. my concern is, how can i lessen my tax bcuz it takes almost 1000 monthly. supposedly, i am minimum but they only add 1.00 to have above minimum.
    :(

  6. TaxAcctgCenter says:

    Hi Joel, BIR Form No. 2316 is your proof that the employer remitted and withheld rightful taxes. It would serve as your Income tax Return under substituted filing.

  7. TaxAcctgCenter says:

    Hi princess, good for you because minimum wage starting Nov. 1 is 456 in Metro Manila. If you will be paid more than the minimum amount then, your salary shall be withheld taxes. P1.00 on top is not quite employee friendly compensation package I suggest you seek reconsideration or change employment, if it warrants.

  8. Meg Mationg says:

    Hello and good day to you. I am working for a multinational company that has several subsidiaries in the Phils. Effective Nov. 1,2013, I will be transferred from Co. A to Co. B with a substantial salary adjustment. How should my taxable earnings be treated, should I resign from Co. A and be hired as a new employee in Co. B? These 2 companies have separate tax filing procedures.

    1. TaxAcctgCenter says:

      Hi Meg. It would depend on the mechanics of your transfer because it could be both and would not not affect your income taxation. To simplify matters, yes, a single employer would be better.

  9. Ivy Maris says:

    Hello. If the employee did not provide 2316 from previous employer, will the current employer have tax exposure, or be liable, if there should be tax still due upon consolidation of income and taxes withheld from both employers?

    1. TaxAcctgCenter says:

      Hi Ivy, we do not see any tax exposure on the part of the new employer. They may just have to annualize based on available data.

  10. Ivy Maris says:

    Follow-up question, upon consolidation of income from previous employer and income from present employer, it resulted to tax payable, say 20,000. The employee’s 13th month pay, say 15,000, is not enough to cover the tax payable. Since the employee is not qualified for substituted filing, as he had two employers within the year, he needs to file 1700 and settle the tax payable 20,000 come April 15, right? Or, is the employer required to offset the tax payable 20,000 against his 13th month pay 15,000, then withhold remaining tax of 5,000 in the succeeding payroll next year? Please advise, and I would appreciate specific answers with the related BIR regulation.

    1. TaxAcctgCenter says:

      Hi Ivy. Annualization is made within January of the following year while the 13th month pay is given not later than Dec. 24 so it seems like you could not offset the 13th month pay for the payable. For January payroll, you could deduct the entire tax payable or have it shouldered by employer for humanitarian reasons and make periodic deductions on subsequent payrolls. You may please visit the nearest BIR office for more options or you may visit Revenue regulations no. 2-98 on compensation withholding rules.

      1. Ivy Maris says:

        Thanks for your reply. If the Company would settle to the BIR, then recover through salary deductions starting January, the Company is not sure that the employee would stay until the taxes are paid. There is a risk if the employee resigns. We have a case wherein the tax payable is a big amount, and would need to be deducted from salaries on installment basis. If the Company does not wish to make advance payment at year-end (for tax due to be equal to tax withheld), will it work for the Company to advise the employee to file and pay his tax payable on April 15, on the basis that he is not qualified for substituted filing, and of the pay-as-you-file principle?

  11. shaszy lopez says:

    gud am! i was just wondering what is alphalist attachment? and if we are receiving below min wage do we still have to file for w.t? thanks

  12. TaxAcctgCenter says:

    Hi Sashy, Alphalist is an attachment to BIR Form No. 1604CF and contains payroll and withheld taxes of each and every employee. If minimum wage earners are exempt, it is with more reason that below minimum should be exempt.

  13. vida_lacson says:

    hi good morning! i would just like to inquire, my previous employer will be releasing my cert of withholding tax 45-60days after resignation, but my current employer demands that the certificate needed to be furnished in order for me to get my salary..the problem is that 45 days hasn’t passed yet and my previous employer is firm on company policy regarding release of my form 2316, are there other options for me to have my 2316 so that i can get my salary with my current employer? thanks!

    1. TaxAcctgCenter says:

      Hi Vida, If you are already cleared in your previous employer, it would be unjustifiable to delay the release of the 2316 because Revenue Regulations No. 2-98 only allows 30 days. The rules provide that in case of failure to provide 2316, you may file a claim with the BIR that they may conduct a mandatory audit over your previous employer.

  14. karenn says:

    im earning 12k a month. single with 4 qualified dependents. how much tax does my employer should deduct from my salary.

  15. eden i. payapa says:

    please show a sample computation even the most basic one only, of year-end annualized withholding tax on compensation…detailed pls. include the sss, benefits, etc. tnx..

  16. alona says:

    To: Taxacctgcenter
    Ma’am/sir ask ko lang po yung anak ko po kasi 20 years old na last October 16, 2012, next year 21 na po siya. Ang tanong ko lang po kasi dito sa office namin eh wala na po akong marereceive na tax exemption starting next year January 2013 dahilang mag 21 na po ang anak ko sa October 16, 2013? Totoo po bang wala na akong matatanggap na exemption para sa anak ko? Considering 20 pa din sya at sa October 16 pa sya mag 21. Ayon po kasi dito sa office namin na buong taon next year eh wla na akong exemption sa anak ko. May napagtanungan po kasi ako na I can still claim yung tax exemption hanggang buong taon ng 2013 dahil may nasusulat po sa BIR tungkol dito. Maari po ba akong makatanggap ng katibayan na nagsasaad tungkol sa exemption. Maraming salamat po sa tulong ninyo. Nais ko lang pong maliwanagan at maipaalam sa opisina namin ang rules pagdating sa tax exemption.

    Salamat po
    Alona

  17. TaxAcctgCenter says:

    Hi Alona. Marahil ay ipabasa sa inyo pong employer ang Section 35 ng Tax Code natin na nagsasabi entitled pa din sa taon na mag 21 ung anak. Thanks.

  18. Melisa says:

    Hello, Gud Afternoon..

    Mam panu po mgcompute ng tax kung yung half month is minimum at yung half month ay above minimum. for annualization na po..

    thank you

    1. TaxAcctgCenter says:

      Hi Melisa. We believe you should apply exemption on half and taxable on the other haft after becoming non-minimum wage to preserve the intentions of the exemptions. You may confirm this with the nearest BIR office with you.

  19. Thea says:

    Hello po

    Applicabledin po ba sa resident alien employee ang personal exemptions sa pagcompute po ng 2316?

    Thanks po

  20. TaxAcctgCenter says:

    Yes Thea, personal exemptions apply to them in accordance with Section 35 of the Tax Code. Please visit http://www.taxbukpinoy.com for the Tax Code provision. Thanks

  21. D says:

    If you’re employed, is it the responsibility of the employer to deduct your salary and pay for your taxes? (salary=minimum wage)

    1. TaxAcctgCenter says:

      …@D. Yes, it is the responsibility of the employer. Minimum wage earner is not subject to tax so nothing to worry about.

  22. Lea Natal says:

    Hi Good day!

    I start with my new employer last June 2012, I resigned from my previous employer last May 2012. As part of the requirements for my new employer I submitted my 2316 form, but now my current status is M0 wherein from my previous employer its M2. For the first cut off of December I had a w/h tax off 8,914.65. My current employer explained to me that they need to combined my income from my previous employer plus my income with my current employer as part of their tax annualization process. My question is, what are the possible reasons why my tax is that big, or you think it has something to do with tax exemption status right now though they combined my income?

  23. Anthony says:

    Hi, I am confused with the taxation.

    Just a background, i have Company A as my employer from Jan2012 to Oct2012. On Nov2012 , i moved to Company B.

    My 2316 from my previous employer showed that the taxwitheld was remitted to the BIR.

    I was not able to submit my 2316 from my previous employer to the current one. On the last pay-out of Dec2012, i received the tax witheld for Nov2012 and Dec2012. I assume that i was treated like an employee with no previous employer. Correct me if i’m wrong, my current employer should consolidate my income from Jan2012 to Oct2012 with the two remaining months of the year. But since, i was not able to submit them, i have to personally go to BIR and process the papers.

    What’s the next step to be made in order to avoid issues in the future? Thank you!

  24. TaxAcctgCenter says:

    Hi Lea. Yes, the tax exemption status affected you withholding taxes. Just request with your current employer to use the correct exemption status and the annual withholding taxes will be adjusted accordingly.

    1. Lea says:

      Hi

      Thank you for your response. Follow up question is, Does an employee always have a tax refund if we never completed the year in a company? Is it possible for me to have a tax refund with my current employer since I just started last June 2012 together with the w/h tax 8,914.65? Thank you so much

  25. TaxAcctgCenter says:

    Hi Anthony. Yes, it should have been consolidated. We go with you in filing your 2012 income tax return not later than April 15, 2013. Next time, please see to it that your previous employer will provide you the 2316 because your compensation and withholding tax details are on it for the new employer to consolidate.

    1. Anthony says:

      Hi TaxAcctgCenter,

      Thanks for the feedbacks.

      Just in case i won’t be able to file it before April 15, what would be the issues that i may encounter? Thanks!

  26. alexa yu says:

    Hi TaxAcctg Center,

    Could you please help me?

    I started working with Company A last October 2012 and still presently working there until now (my contract expires by end of April). My salary is P18,000 per month with 10% Withholding Tax.

    I was told by someone that I don’t need to pay tax for Oct-Dec 2012 since I did not reach P50,000 yet but the company taxes me 10% every 15th and 30th.

    1. Is the person right to tell me I should not be paying Oct-Dec 2012 tax? If yes, how could I remedy this?

    2. I may start with Company B soon (before my contract with Company A expires in April) and still continue working with Company A as the 2 companies don’t clash anyway with working hours, requirements, and business-type.

    How will working for 2 companies affect my tax filing by April 15? Can the 2 companies file my ITR separately or what? Do I need 2 TINs for this? How do people working for 2 companies deal with this?

    I will appreciate your immediate response as I plan to move to Company B soon and thank you for replying to your readers. More power to you :)

  27. Liana says:

    Hi, I’m reviewing how my current employer computed Tax Annualization. Based on the cpmputation they used Gross Taxable Compensation Income from my previous employer in computing my taxable income YTD. Is this correct? Or should the Net Taxable Compensation Income be used instead? Thank you

  28. TaxAcctgCenter says:

    @ Alexa. Regardless of how many employers we have during the tear, all of our compensation income will be taxed in one ITR, one TIN and with the same tax table with rates ranging from 5-32%. Employers will simply withhold and each of them will provide BIR Form No. 2316 that will be used in filing consolidated ITR.

    Your 2012 employer will annualize your tatal salaries with them and compute the annual taxes for comparison with the withheld taxes at 10%. If your compensation income will not exceed your personal exemption (P50k plus P25K for every dependent child up to 4), then, such employer may have to refund you withheld taxes this January 2013. If you transfer employment this January, then, your new employer will simply make a new start for withholding taxes on compensation.

  29. TaxAcctgCenter says:

    @ Liana. It is okay to use the Gross Taxable compensation as they would also consider the mandatory deductions for SSS, PHIC, HDMF detailed in the BIR Form No. 2316 from your previous employer. Thanks.

  30. TaxAcctgCenter says:

    @ Lea. It is not always the case that since you failed to complete a year of employment in one company, you will be entitled to refund. It will depend on your level of salary and personal exemptions. Just get the details from your payroll custodian so you will see whether your are entitled to a refund or not. Thanks.

    1. Lea says:

      Hi,

      Alright, Thank you so much. You’ve been very helpful. More Power…:-)

  31. Raven says:

    hi, my employment with Company A ended last August 2012 and started with Company B (current employer) last September 2012. My salary for the end of December 2012 was negative because of “Tax Due”. What could be the factor/s that have caused this?

  32. Ellen says:

    I have updated my tax exemption from Married with one dependent to Married with 2 dependents. Based on this updates, I should have 25,000 additional exemption. But they only refunded 8,000.
    The explaination they have provided is additional exemption x 32% (25K x 32% is 8K). Why did they tax my tax exemption? Should be I getting 25K instead of 8K. Hope you could help me with this.

  33. Kitchie says:

    Hi. I transfered to a new company last June 2013 as Contractor in a newly registered Company. My previous status was Regular Employee (from Jan-May). I want to know how will I file tax for year 2012? How should I file tax? What are the requirements? What are the procedure and how may % for contractor? Thanks.

  34. jes says:

    hi. should the employee receving net pay of 4833.30 (5,000 less 166.70 sss) monthy be included in the alphalist. His total annual net pay (less sss, hdmf. phic is only 57999.60. His status is single. If i will compute it 57999.60 less 50,000 PE is 7999.60. so there is still 7999.60 net taxable income to be multiplied by 5% , then still due is 399.98. His salary is below minimum wage w/c is exempt from w/tax., that is why he has not been deducted w/tax in his whole 2012 payroll.

  35. stranger says:

    hi, are commissions supposed to be part of taxable income? thanks.

  36. TaxAcctgCenter says:

    @stranger. Yes, commissions are taxable income.

  37. Nanette says:

    We have an unpaid salaries because of legal problems against him from 2010 to 2012 who had many absences. Since we are going to pay it this year of 2013 My question is his taxable income. Should it be his Basic less Absences ? I want this to be sure because he might complain for erroneous computation of tax. thank you!

  38. TaxAcctgCenter says:

    @Nanette. Let me share our views. Philippines is under a no-work-no-pay policy so we believe it should be deducted absences. Yes, that is a taxable income subject to withholding tax on compensation.

  39. Mark says:

    I had two employers last year from Jan-May and May-Sept and last October I’ve started as a contractor for a small business. So from regular employee to a contractor status, how will I file my tax for 2012? Do I still need to register in BIR?
    Where can I pay and file my tax due?
    I have withholding tax from previous employers (Form 2316). Is it deducted to my tax due?
    The company I’m working for right now deducts percentage tax of 2%? Is it deducted to my tax due?
    What other deductions can I declare?

  40. KittyTiger says:

    My last ITR filed was in 2007 when I worked for a company. In 2008 I worked for a start up that failed to report to BIR. I resigned. Since 2009 to 2012 I have been rendering personal professional services to friends (marketing, events management, etc). I am not a registered DTI professional, and these clients paid me in a personal capacity. I want to clean up with BIR and pay my 2012 taxes, also since I need an ITR for visa application. I was advised to fill up Form 1901, and fill up LIne 56. Can I do that? Is that acceptable to BIR? Help! I have no supporting docs because the payments were in a personal capacity, and I don’t want to get my friends involved.

  41. KittyTiger says:

    Correction on my post above. I was advised to fill up Form 1701 (not 1901) and fill up Line 56.

  42. Olive Narciso says:

    We are being offered an involuntary separation package due to the company’s labor cost management program. Isnt there a need for my employer to file first with the BIR for tax exemption before this is offered to us employees? If no BIR ruling was sought, will the employees be liable of tax liability in the future if we avail of the program and the BIR finds out about it?

  43. Agila says:

    I worked at company A until Feb 2012, then worked for Company B from April 2012 – Nov 2012 (7 months approx). I returned to Company B on Jan 2013 and received my backpay and signed the clearance with accounting.

    This Feb 2013 Company B’s head office called me and told me I have a tax deficit of around 4k. They said that they were unable to deduct the amount until Jan 31, 2013, at which time I was already resigned.

    Question: Am I really obliged to pay them? In case I don’t, will I face any legal issues?

    Thank you and more power!

  44. bry says:

    My employer incorrectly submitted my witholding tax under the regular tax table. I am an ROHQ employee and qualifies for 15% preferential tax rate but my employer had an internal error and failed to correct it before submission deadline. Any suggestions on what I can do to help my employer and myself recover the forwarded tax collected from my gross taxable salary and present BIR form 2306 instead?

  45. ryana says:

    I am on S1 status ever since. I was with company A from Feb 2011 – Jan 2012., Company A gave form 2316, last salary certificate and breakdowns of my backpay all indicating I am on S1 status.
    I gave a photocpy of my son’s birth cert too.
    I was hired by Company B on May 2012. I noticed on my 1st payout Tax status was S. bu during early monthst tax deducted was same as with an employee on S1 status. I did raised the concern with the HR department. But they never answered me, July to December my tax was getting higher. I waited for tax refund month on december thinking I might recieived a refund but No, i did not, I EMAILED them asking to review the taxes with held. they said ALL DEDUCTIONS ARE CORRECT BASED on the 2316 of company A.
    On February 2013, Tax deducted were for S only so I told them to double check my tax status, and they said I was on S only.
    They blamed me primarily because i did not write the name of my son on the application form for employment. they said they based my tax status on that form. they said it is too late for me to file a claim since money was already remitted to BIR. They were even telling me to fix it with BIR. again it is not my fault.. right?
    How come they said all deductions were correct where in my 2316 for Company A, I was on S1 status then with company B they placed me S. would i get an evidence with the alphalist that deductions were not correct or like they should have somehow noticed S1 and S or P75,000 excemptionamount on the document?
    I want to file legal actions with Company B, i want to be compensated. I know I can not get a tax refund but I want company B to pay me. HELP ME pls

  46. Dan says:

    Hi, I am a single individual with no qualified dependent and I work for Department of Health since Oct 2012 under a Contract of Service as a rural health physician with a gross salary of 56,000/month. How much tax should be applicable to me? Deductions from withholding tax amount to almost ~13-,000 to 14,000 monthly.

    1. Is there an employer-employee relationship under a contract of service? (i.e. we have no GSIS, no Pag-Ibig, no Philhealth, no leave credits,)
    2. Am I being taxed correctly? if not, how much tax should DOH withhold from our salaries?

    Thanks

  47. maZter says:

    Hi, good day! I am working in my new agency and started last April 2012. i am receiving an average netpay for about 18k/mo. Since i just started last april, i am entitled for a tax refund, isn’t it?
    In case, can u give me rough estimate of my refund? Thanks in advance…

  48. teddy says:

    hi..i need your help! can anyone answer my question regarding withholding tax compensation? if you have employees who are earning at minimum wages..are you required to file the 1601C? as i know minimum wage earners are not subject to tax, right? so, nothing to file? or still required to file and indicate in the form the word “NIL”?

  49. EDEN says:

    Hi, I need held. I will personally file my ITR (FORM 1700) as my current employer will not file it because I had a previous employer last year. I already have both form 2316 from my previous and current employers. I just want to know if there is a ceiling amount for the exemption for the compensation under row 40 (SALARIES AND OTHER COMPENSATION)?

  50. Mhyr says:

    Hi, I have a negative amount section on my 2316. Does that mean I have a tax refund of the said amount? I previously gave birth and filed my maternity leave last year with leave of absence in total of four months. Thank you.

  51. Jo says:

    My sister is a minimum-wage earner in the service industry, and I’ve been wondering why her employer withholds tax from her every month (sometimes even bigger than mine).

    The explanation from their HR is that they add the service charge their branch receives to their salary, and then they are taxed according to the combined total.

    Is that practice right?

  52. Maria says:

    Hi!!
    I was previously employed in philippine heart center where I was oblidged to pay my tax I resigned last 2011 and beame a full time house wife then. Do i still need to continue filling for income tax return and pay?? I dont want to have unknown liabilities with regards to paying taxes. Thanks for answering my query :)

  53. liza machate says:

    Good Day! I just want to ask regarding giving tax refunds to resigning employees in the middle of the year. I am an employer. If I give them their tax refunds, how can i claim these refunds i gave them from the BIR since their wtaxes have already been remitted to the B.I.R.? I just dont understand why i have to pay tax refunds to resigning employees. My gratitude to be hearing a reply from your office. thank you very much.

Education - Top Blogs Philippines Philippines Blog Directory Law Blogs
Online Marketing
FireStats icon Powered by FireStats