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COMPENSATION
Presented by:
MS. CYNTHIA E. OMERES, CPA
Revenue Officer
Assessment Division
COMPENSATION INCOME
DEFINED
6. Life insurance
in Region XI :
Sec. 22 Definition
statutory minimum wage shall refer to the rate
fixed by the Regional Tripartite Wage and
Productivity Board, as defined by the Bureau of
Labor and Employment Statistics (BLES) of the
Department of Labor and Employment (DOLE).
COMPUTATION OF WAGES
2305 RDO
(w/in 10 days (w/in 30
after change of days after
status) receipt)
Duplicate
Employer
Original - Employer:
Triplicate review ,
RDO
Employee compute,
withheld &
apply
exemptions
File
copy
File
copy
IN CASE THE HUSBAND WAIVES HIS RIGHT
TO EXEMPTION:
H-
Accomplish
1902
Annex 3 copies
F
W- employer:
Deduct on the mo
H- employer
Stopped deducting
Employer of
H-
acknowledg
e
Original-
Ws
Triplicate- employer
employee
Duplicate Stop
H- deductin
employer g
FAILURE TO FILE 1902/2305:
Failure to file 1902:
Zero exemption shall be applied based on the revised
withholding tax table
Excess 2,000.00
Monthly 1 2 3 4 5 6 7 8
1. Z 0.0
1 0 833 2,500 5,833 11,667 20,833 41,667
Total P14,299.66
Employer
Responsible for withholding and
remittance of correct amount of tax
Employee
Responsible for submission of 1902 / 2305
STATEMENTS AND RETURNS
BIR Form 2316
PURPOSE:
TAX DUE = TAX WITHHELD
WHEN:
On or before the end of the calendar year, prior to the
payment of compensation for the last payroll.
If terminated, on the day on which the last payment of
compensation is made.
BASIC CONCEPT OF
YEAR -END ADJUSTMENT
Compensation Income-net
A B C
Compensation Income-net 230,000 230,000 230,000
Less: Exemption (single) 50,000 50,000 50,000
Taxable Income 180,000 180,000 180,000
Tax Due 32,500 32,500 32,500
Less: Tax Withheld Jan-Nov 32,500 30,000 34,500
EVEN 0__
PAYABLE 2,500
REFUNDABLE (2,000)
ANNUAL INFORMATION RETURN
Note: All of the above requisites must be present. The Annual Information Return
of Income Taxes Withheld on Compensation and Final Withholding Taxes
(BIR Form No. 1604-CF) filed by their respective employers duly stamped
Received, shall be tantamount to the substituted filing of income tax
returns by said employees.
TMD
Seminar on Annualized Withholding Tax (Year-End Adjustment) and Substituted Filing (BIR Form 1700) SF 200 Slide 2
EFFECTIVITY OF SUBSTITUTED FILING
Preparation of BIR
Form No. 1604 CF Before Jan. 31
Employer files w/
BIR the duly accomplished On or before Jan 31
BIR FORM 1604CF