Beruflich Dokumente
Kultur Dokumente
(Year-EndAdjustment)
1
WHEN:
On or before the end of the calendar year but prior to the payment of compensation for the last payroll period. If terminated, on the day on which the last payment of compensation is made.
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STEP 1 - Determine the taxable regular and supplementary compensation paid to the employee for the entire calendar year;
STEP 2 - If the employee has previous employment/s within the year, add the amount of taxable regular and supplementary compensation paid to the employee by the previous employer;
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Additional Exemption: P 25,000 for each qualified dependent child not exceeding four (4)
STEP 4 -
Deduct the amount of premium payments on Health and or Hospitalization Insurance of employees who have presented evidence that they paid the same during the taxable year. The deductible amount shall not exceed P 2,400/ annum or P 200/month whichever is lower and the total family gross income does not exceed P 250,000 for the calendar year. The employee is required to furnish employer with copies of policy contract and proof of payments before the employer does the year-end adjustment.
5
NOTE:
at in Step 4.
Not over P10,000 over P10,000 but not over P30,000 over P30,000 but not over P70,000 over P70,000 but not over P140,000 over P140,000 but not over P250,000 over P250,000 but not over P500,000 over P500,000 5% P500 + 10% of the excess over P10,000 P2,500 + 15% of the excess over P30,000 P8,500 + 20% of the excess over P70,000 P22,500 + 25% of the excess over P140,000 P50,000 + 30% of the excess over P250,000 P125,000 + 32% of the excess over P500,000
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STEP 6 -
Determine the deficiency or excess, if any, of the tax computed in Step 5 over the cumulative tax already deducted and withheld since the beginning of the current calendar year.
xxxx Pxxx
BREAK-EVEN:
Sample Problem 1
Mr. Dexter, single receives P 25 ,000 (net of SSS, Philhealth, HDMF and other nontaxable items of gross income) as monthly regular compensation starting January 1, 2010, he filed his resignation effective June 30, 2010. The tax withheld from January to May was P15,000.00
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Sample Problem 1
Computation:
Total compensation received from January 1 to May 31, 2010 Add: Compensation to be received on June Gross Compensation Jan. June, 2010 Less: Personal Exemption Taxable Compensation Tax Due * Less: Tax Withheld from Jan. to May Excess tax withheld to be refunded by employer on or before June 30, 2010 * Tax Due on P70,000.00 Tax on excess (P30,000 x 20%) Total tax due P 125,000.00 25,000.00 P150,000.00 50,000.00 P 100,000.00 P 14,500.00 15,000.00 P 500.00
Sample Problem 2
Ms. Allister, married with 2 qualified dependent children (with husbands waiver) receives P25,000 monthly compensation (net of SSS, Philhealth, HDMF contributions) in 2010 while tax withheld was P35,000.00. Total Compensation Jan. - Nov. (P25,000 x 11 mos.) Add: Compensation to be received in Dec. Gross Compensation Income Less: Personal Exemption - Married P 50,000 Additional Exemptions - 2 x P25,000 50,000 Taxable Compensation Income Tax Due* Less Tax Withheld from Jan. to Nov. To be withheld from employees December salary Tax on P140,000.00 Tax on excess (P60,000.00 x 25%) *TAX DUE P22,500.00 15,000.00 P37,500.00 P 275,000.00 25,000.00 P 300,000.00 P100,000.00 P200,000.00 P 37,500.00 35,000.00 P 2,500.00
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Employers are required to submit the ANNUAL INFORMATION RETURN OF INCOME TAXES WITHHELD ON COMPENSATION AND FINAL WITHHOLDING TAXES (BIR Form No. 1604CF) and the ALPHABETICAL LIST OF EMPLOYEES
WHEN :
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On or before January 31of the following year WHERE: RDO, LTDO, LTS
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Individuals Qualified for Substituted Filing and are not required to file BIR Form No. 1700
(RRs 3-2002, 19-2002, 10-2008, RMC 1-2003)
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 1604-CF) filed by their respective employers duly stamped Received, shall tantamount to the substituted filing of income tax returns by said employees.
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Certificate of Income and Tax Withheld on Compensation (BIR Form No. 2316)
Who shall issue: When to issue : Employer a) on or before January 31 of the following calendar year; or
Certificate of Income and Withheld on Compensation (BIR Form 2316) In case of successive employment:
The employee is required to furnish his new employer with his duly certified copy of the Certificate issued by the previous employer, both within the taxable year.
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