EMPLOYEE REGISTRATION:

When should the new employees register with the BIR?

Employers should
secure the TIN of its
new employees within
_____ days from the
date of employment.
SECURING T.I.N. :
Employer – Employee Responsibilities

EMPLOYEE EMPLOYER
Accomplish BIR Form 1902 Require employees to accomplish in
triplicate BIR Form 1902

File to BIR within ____ days from date of

employment of secure the TIN through
eRegistration System
BIR eReg System:
Rules on Transfer of Registration:
Transfer from head office to
branch of the same
employer(vice versa)
Change of employer
Transfer of
registration of
employees
Transfer of employer to
different rdo
Employee’s residence and
new employer are
registered in same rdo
Employee’s residence and
new employer registered in
different rdo
Employee’s residence and
employer’s previous business
address are under the same rdo
Employee’s residence and
employer’s previous business
address are not in the same rdo
Rules on Transfer of Registration:
Scenarios A and B

RESPONSIBILITIES OLD RULE NEW RULE

Person responsible for the transfer Employer Employee

RDO where the registration will be

RDO of New Employer RDO of Residence of Employee
transferred

RDO where the BIR Form 1905

RDO of New Employer RDO of Old/Previous Employer
should be submitted
Rules on Transfer of Registration:
Scenarios A and B
1. Employee should transfer his TIN from RDO of his previous
employer to the RDO having jurisdiction over the place of his
residence by submitting BIR Form 1905 to the RDO of his
previous employer.
2. Take note of the new format of Form 1905:
Rules on Transfer of Registration:
Scenarios A and B
4. In case the employee’s location is relatively far from and/or
unable to visit the old/previous RDO for the submission of
application of transfer of registration, a faxed/email copy of
BIR Form 1905 with signature and valid Gov. IDs may be
accepted by the said RDO to effect such request for transfer.
5. Old/Previous RDO which received the application shall
transfer the registration of the employee immediately or
within 24 hours.
Rules on Transfer of Registration:
Scenarios C – Due to Transfer of Employer to a Different RDO
RESPONSIBILITIES NEW RULE
Person responsible for the transfer Employer

RDO where the registration will be

New RDO of the Employer
transferred
RDO where the BIR Form 1905 and
List of Transferring Employees Previous RDO of Employer
should be submitted
Employees whose residence
address is under the same RDO of
Exception
Employer’s previous business
address
Rules on Transfer of Registration:
Scenarios C – Due to Transfer of Employer to a Different RDO
Employer Employee Employee’s
scenario
From rdo no. To rdo no. residence rdo new rdo
A 80 81 83 81
B 80 81 81 81
c 80 81 80 80
PENALTIES:
Employers required to use
eReg but instructed new Php 1,000 per employee
employee to visit the RDO

eReg required users who

Php 1,000 per instance
supplied erroneous or
but not exceeding Php
invalid information (Sec.
25,000
250 of Tax Code)

Criminal Liability
Acquisition of multiple +
TIN (also TIN card) Php 1,000 for every excess TIN
Employer – Employee Relationship

Power to Mode of Power to

Employ Payment Disengage

*The presence of physical

Power to contract is not essential
Control
EXCLUSIONS vs DEDUCTIONS:

Exclusions Deductions
Income items but not compensation Reductions from Gross Compensation
incomes Income

Exempt from Income Tax Personal and additional exemptions

Exclusions from Gross Income:
1. Proceeds of Life Insurance and Return of Premiums
2. Gifts, Bequest, and Devises
3. Compensation for Injuries or Sickness
4. Tax-exempt Retirement Benefits, Pensions, and Gratuities
5. SSS, GSIS, Medicare and Other Contributions
6. Prizes and Awards in Sports Competition
7. Gains from Redemption of Shares in Mutual Fund
8. 13th Month Pay and “Other Benefits”
13 Month Pay and “Other Benefits”:
th
Scope
• Gross benefits received by officials and employees, provided that the
total exclusion shall not exceed Php 90,000.00 which shall cover:

1. Benefits received by officials and employees of the national and local

government pursuant to Republic Act No. 6686 (Annual Christmas Bonus)
2. Benefits received by employees pursuant to Presidential Decree No. 851
(13th Month Pay)
3. Benefits received by officials and employees not covered by Presidential
Decree No. 851
4. Other benefits such as productivity incentives and Christmas bonus
 Christmas Bonus
Productivity Incentives
Loyalty Award
Gift in Cash
Gift in Kind
Others of Similar Nature
Actually Received
13 Month Pay and “Other Benefits”:
th
Tax Treatment
• Does not exceed the Php 90,000.00
ceiling – the whole amount is exempt
from taxes

• The amount beyond Php 90,000.00

ceiling – subject to withholding tax on
compensation, regardless position of the
recipient
De Minimis Benefits
- Facilities or privileges, furnished or offered
by an employer to his employees
- Relatively small in value
- Offered by the employer merely as means of
promoting the ff:
• Health
• Goodwill
• Contentment
• Efficiency of employees
Taxation of De Minimis Benefits:
Recent Developments
• RR 11-2018 on January 31, 2018
− Revised the threshold of the following:
BEnefits old threshold New threshold
Medical cash allowance to dependents of employees Php 750.00 per employee Php 1,500.00 per
employee
Rice subsidy Php 1,500.00 per month Php 2,000.00 per month
Uniform and clothing allowance Php 5,000.00 per annum Php 6,000.00 per annum

• RMC 50-2018 on May 25, 2018

− Clarifies already that benefits given in excess of the threshold shall be included as
part of the “other benefits’ which is subject to the Php 90,000 ceiling
Classifications of De Minimis Benefits:
1. Monetized Leave Credits
2. Medical Cash Allowance to Dependents of Employees
3. Rice Allowance
− Not exceeding Php 2,000.00 or 1 sack of 50kg rice per
month amounting to not more than Php 2,000.00
4. Uniform and Clothing Allowance
5. Actual Medical Assistance
6. Laundry Allowance
7. Employee Achievement Award
8. Gifts During Christmas and Major Anniversary Celebrations
9. Daily Meal Allowance
- Not exceeding 25% of basic minimum wage on per
region basis
De Minimis Benefits:
Reminders
no. 1
No aggregation of de minimis values. Each item should be treated independently
of each other

Example: The company grants its employees rice and meal allowances through
meal and food vouchers. To conform to the prescribed ceilings, separate
vouchers should be used for the rice allowance and the meal benefit.

no. 2
List of de minimis is exclusive. If the benefits granted to employees are not
included in the enumeration, it shall not be considered as de minimis benefits,
and shall be subject to withholding tax on compensation or FBT
Other Statutory Benefits:
Expanded Maternity Leave Benefits (RA 11210)
1. Female employees shall receive full pay
which consists of
• SSS maternity benefit computed based on their
average daily salary credit
• Salary differential to be paid by the employer

2. Maternity benefit in the form of paid

leave for the duration of
• 105 days for live birth (regardless of mode of
delivery), and additional 15 day if qualified as solo
parent; or
• 60 days paid leave for miscarriage and emergency
termination of pregnancy
Expanded Maternity Leave:
Salary Differential Computation
Step 1: Compute the amount of full pay. Step 2: Ascertain the employee’s premium
contribution share for SSS, PhilHealth, and
Pag-IBIG covering the maternity period.
Full pay = monthly salary * maternity period

SSS = Php 2,800.00

If:
PhilHealth = Php 1,925.00
Monthly Salary = Php 45,000
PAGIBIG = Php 350.00
Maternity Leave Period = 3.5 Months

TOTAL = Php 5,075.00

Then:
Full Pay = Php 45,000 * 3.5
Full Pay = Php 157,500
Expanded Maternity Leave:
Salary Differential Computation
Step 3: Compute the amount of SSS Step 4: Deduct from full pay the social
Maternity Benefit. contributions and the SSS Maternity Benefit

SSS MB = Daily Rate of MSC * Days of Leave Full Pay = Php 157,500.00
Contributions = (Php 5,075.00)
SSS MB = ( 20,000/30) * 105 Net = Php 152,425.00
SSS MB = Php 70,000.00 SSS MB = (Php 70,000.00)
SALARY DIFFERENTIAL = Php 84,425.00
Other Statutory Benefits:
Tax Treatment
1. RA 8187 – paternity leave of 7
days with full pay for the first 4
deliveries of legitimate spouse
Shall be subject to
2. RA 9262 – 10 days leave for withholding tax on
women victims of violence compensation in the
3. RA 8972 – parental leave of not absence of provisions in
more than 7 working days per the law exempting these
year shall be granted to any solo special leave privileges.
parent employee who has
rendered service of at least 1
year
Separation and Retirement Benefits:
Tax Treatment
Voluntary Taxable
Resignation
Separation Termination

InVoluntary Tax Exempt

death Certificate of Tax Exemption
disability
disease
No control

Qualified Tax Exempt

Retirement
BIR Approved Retirement plan
Collective Bargaining Agreement
Employment Contract Not Qualified Taxable
Labor Code
• Non-Large Taxpayer • Non-Large Taxpayer
—Hard copies —Soft copies
—Irrevocable choice to use PDF or —Should be in PDF form
other form —Through DVD-R or Flash Drive
Thank you.