BIR Form 2316, the Certificate of Compensation Payment / Tax Withheld, is the yearly statement an employer gives each employee showing what they were paid and how much tax was withheld. For most employees it also doubles as their income tax return. Here is what employers must do with it, and when.
- Every employee gets a 2316 by 31 January, or on the day of their final pay if they leave mid-year.
- Signed copies for substituted filing go to the BIR by 28 February.
- The figures must match the employer's 1604-C alphalist.
Deadlines
| What | Deadline |
|---|---|
| Give Form 2316 to employees on the payroll at year end | 31 January of the following year |
| Give Form 2316 to an employee who leaves | The day of the final payment |
| File BIR Form 1604-C and the alphalist of employees | 31 January of the following year |
| Submit signed 2316s of substituted-filing employees to the BIR | 28 February of the following year |
| Refund excess tax withheld from annualization | 25 January of the following year |
What is on the form
- Part I, employee: name, TIN, address, birth date and contact details, and whether the employee is a minimum wage earner.
- Part II, present employer, and Part III, previous employer if any: name, TIN and address.
- Part IV-A, summary: gross compensation from present and previous employers, non-taxable and taxable income, tax due, and tax withheld.
- Part IV-B, details: the non-taxable items (minimum wage pay, holiday and overtime pay of minimum wage earners, 13th month pay and other benefits up to ₱90,000, de minimis benefits, contributions) and the taxable items (basic salary, allowances, commissions, overtime, and so on).
Both employer and employee sign it. The employer keeps a copy and gives the employee theirs.
Substituted filing
An employee qualifies for substituted filing when all of these are true:
- they earned only compensation income during the year
- they worked for only one employer in the Philippines for the whole year
- the tax withheld equals the tax due after annualization
For them, the 2316 signed by both parties takes the place of BIR Form 1700. The employer submits those signed copies, with the list of substituted-filing employees, to the BIR by 28 February. Employees who do not qualify, such as those with business income or two employers in the same year, file their own return.
Common mistakes
- Totals that do not match the alphalist. The 2316 figures and the 1604-C alphalist must agree to the centavo, because the BIR cross-checks them.
- Skipping the annualization. The 2316 shows the annual tax due. If December payroll was not annualized, tax due and tax withheld will not match.
- One lump "allowance". Without separate lines, de minimis benefits cannot be shown as non-taxable. See the 2026 de minimis ceilings.
- Late forms for resigned employees. The 2316 goes with the final pay, not at year end.
Payslip.ph produces the 2316 for every employee from the year's payroll, using the September 2021 version of the form, and the 1604-C alphalist from the same figures, so the two always agree. Workers can download their own 2316 from the worker portal. For how the tax is worked out, see the withholding tax table 2026.