28 December 2022

 

myHR Advisory Notice
Helpdesk Updates

Transition Plan to the New Format of BIR 2316 on myHR
Last March 30, 2022, the Bureau of Internal Revenue issued Revenue Memorandum (RM) Circular No. 34-2022 informing all employers and taxpayers about the availability of the Revised BIR Form No. 2316 (Certificate of Compensation Payment/Tax Withheld for Compensation Payment With or Without Tax Withheld).

To remain compliant, the new format of the BIR Form No. 2316, which includes the additional line for the 5% tax credit under the Personal Equity and Retirement Account (PERA) Act of 2008, is set to be available on myHR starting December 26, 2022.

We are assembling the coding and validation of the new format to ensure that it is accurate and error-free. As our myHR users shift to using this new format, there are several components that need to be done, as indicated in the transition plan below:

I. Demonstration of Changes on the BIR 2316
In Figure 1, the BIR 2316 September 2021 ENCS has been updated with two (2) additional boxes: Box 27 pertains to the 5% tax credit under the PERA Act of 2008, and Box 28 identifies with the summation of the withheld taxes from Boxes 26 and 27. It can also be observed that the numbering on the right column of the form had been adjusted keeping the order of the items the same as in the 2018 format.

Figure 1. BIR Form No. 2316 January 2018 ENCS vs. BIR Form No. 2316 September 2021 ENCS
II. Declaration of Employee Headcount with 5% Tax Credit 
As Titanium Technologies adapts the changes onto myHR, please declare the employee headcount with existing 5% tax credits (related to the PERA Act of 2008) and initiate a ticket with our Helpdesk (helpdesk@titanium.ph) on or before January 6, 2022, for documentation purposes.

III. Client Validation and Sign-off of the New BIR 2316 September 2021 ENCS
Before the new BIR 2316 is rolled out in January 2023, myHR users need to ensure that their 2022 taxes are properly annualized.

If there are any modifications to the BIR 2316 configuration beyond the default changes, a declaration must be made through a signed request form sent to the Helpdesk (helpdesk@titanium.ph) as that will be considered a new project. The signed request form is the initial step as it will trigger a scoping discussion. Note that new projects entail business assessment and costing.

If there are no other changes beyond the default, the recipient may provide the official sign-off by lodging a Helpdesk ticket, along with the declaration of employee headcount with a 5% tax credit.

IV. Release of the New BIR 2316 in myHR
The new BIR 2316 is targeted to be released on or before January 6, 2023, and will show up as: “BIR Form 2316 (FORMATTED) Employers Certificate of Compensation (Exempt/Non-Exempt) Sept 2021 (ENCS)“ on the reports list that can be generated from myHR, as illustrated on Figure 2. Additional information about encoding the 5% tax credit will be shared after the release date.

Figure 2. Report Name of the New BIR Form No. 2316 on myHR
This announcement is intended to ensure a smooth and successful transition to the new format of BIR 2316 on myHR.

Titanium Technologies is preparing a series of live webinars and Q&A projected to happen next week until the first week of January to quickly address any questions that myHR users may have about this topic. Watch out for the event details coming your way soon!
 
A Note From Our Helpdesk
We appreciate your feedback as it makes us better - please write to us at helpdesk@titanium.ph for any feedback or questions on the items listed above.