We’re only a month away from January. This means you should already be preparing for the annual filing of BIR form 2316. Good job if you have already started but, if you haven’t, don’t worry. We’ve prepared a simple guide for you!

But first… 

What is BIR Form 2316?


The BIR Form 2316 – Certificate of Compensation Payment/Tax Withheld is a government-issued document that shows an employee’s gross income. Additionally, it shows the taxes withheld by the employer throughout the year.

Moreover, the form can be a proof of income, and tax withheld. Also, you can use the BIR Form 2316 for other purposes, such as proof of financial capacity for loans and other applications.

Is it the same as an Income Tax Return?

The short answer is no. The ITR is a tax return while BIR Form 2316 is the certification of an employee’s income and taxes withheld. However, you can use the two interchangeably.

What is it for then?

Foremost, the filing of this form is one way for the Bureau of Internal Revenue (BIR) to keep track of tax-paying employers in the Philippines. As a matter of fact, the BIR can use this form to determine if an employer has submitted the compensation tax withheld for a given year.

Moreover, employees can also get information from BIR Form 2316 on how much tax their employers deducted from their paychecks during the previous year.

Also, it is worth noting that, during the same calendar year, if an employee resigns, the new employer should seek the Form that the employee got from the old employer.

When should I fill out?

 You must create, complete, and mail BIR Form 2316 to all covered employees on or before the 31st of January of the year following the time in which the compensation was paid.

Then, both the employer and each employee must sign the form. Consequently, the employer must file BIR Form 2316 with the BIR by February 28 of each year.

Form 2316

Getting Ready to Submit BIR Form 2316

Keep these in mind when preparing to submit your Certificate of Compensation Payment/Tax Withheld.

  1. Preparing BIR Form 2316 can be complicated, especially when you have plenty of employees. First, start early, so you won’t have to cram. Also, this allows you to have more time to review your forms before filing.
  2. After that, ensure that your records are accurate and updated. As a result, you wouldn’t want to repeat everything because of a mistake.
  3. Then, double-check everything. Additionally, ensure that you are using the correct version for filing BIR Form 2316. Follow this link for the latest and correct version:

BIR Form No. 2316 (January 2018 (ENCS))

BIR also offers online filings with eFPS and online forms at eBIRForms

4. Form 2316 requires the signature of BOTH the employee and employer.

5. Keep in mind that three (3) original copies of the form should be completed. Additionally, you need to send the form to the employees to sign on or before January 31.

6. Once your employees have signed, you must file the copies of BIR Form 2316 with the BIR before February 28. Then, the BIR, Employer, and Employee shall be provided with their respective copies of the original.

Hurey + Xero Integration

Make it easy with Hurey

Hurey is the Philippines’ most scalable HR and payroll software. Hence, it is designed to help you take care of the stars of your business by automating, simplifying, and optimizing your HR and payroll operations.

Hassle-Free Tax Calculation

Using an HRIS in preparing BIR Form 2316 and other Tax Compliance requirements makes all the difference in terms of volume. In fact, with Hurey’s built-in intelligent tax calculation feature, you can automatically adjust tax computations based on earnings or deductions on every pay run.

Moreover, you can automatically generate your BIR Form for each employee with Hurey, so you won’t have to go through the hassle of doing it manually. Furthermore, this feature not only saves your employees’ time but also lessens the fatigue caused by redundant tasks.

Most importantly, you don’t have to worry about the accuracy of records and volume of work. Moreover, you won’t have to figure out whether or not you are using the right forms. Additionally, everything is automated and taken care of by the system to ensure efficiency, while maintaining the quality and reliability in your filings.

Premium Quality Service

Hurey is specifically tailored to suit the Philippine market and its ever-changing compliance requirements. Thus, it ensures that your HRIS is always up to date with the latest tools. Moreover, its features are constantly upgraded to streamline your processes.

Moreover, as your company expands, you’ll need to devise solutions to deal with the increased demand and effort. By automating HR processes with Hurey, you will help your company keep up and match the growing workload demand. Aside from tax computations, you can also automate other mundane HR operations. Hence, this will free up your HR staff. Additionally, this gives them more time to concentrate on core tasks.

Hurey’s features provide your HR team more time to improve their productivity with tasks that truly provide value to your business. As a result, not only is your company’s human value strengthened, but it also becomes more agile and ready to take on your competitors.

Book a free demo with Hurey. Then, experience the difference of using the most scalable HR and payroll app in the Philippines!


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