2316 Preparation and Issuance

The BIR form 2316 is usually remembered only when December and January comes and for other months, it is left unnoticed.

It was a few months ago when I was asked by one of my co-worker for a 2316, I wondered how can I give a 2316 for year 2015 when the year is not over yet.

Just like most of us, I myself thought that I can only give 2316 at the end of the year. However, due to this, I learned that 2316 can be issued for a period of less than a year.

For those like me before, please be guided that you cannot say that you will give it on January because BIR issued a regulation on this.

RR No. 11-2013 states that

employer or other person who is required to deduct and withhold the tax on compensation including fringe benefits given to rank and file employees, shall furnish every employee from whose compensation taxes have been withheld the Certificate of Compensation Payment/Tax Withheld (BIR Form No. 2316) on or before January 31 of the succeeding calendar year, or if employment is terminated before the close of such calendar year, on the day on which the last payment of compensation is made.

With the BIR making the withholding system stronger, the moment your disassociated employee reports you because you cannot provide a 2316, BIR will definitely make it a ground for your mandatory audit of income tax liabilities.