Almost every entrepreneur knows how to hire good people but not every entrepreneur knows how withholding taxes apply to compensation such employees.

Withholding tax on compensation is a must know of every entrepreneur in order to develop a competitive package for employees and to avoid paying penalties for ignorance.  Should you fail to apply withholding taxes on compensation,  the same shall not be allowed as a deduction for income tax computation until you pay the required withholding taxes PLUS PENALTIES, a one-time 25% surcharge based on amount that should have been withheld, 20% interest per annum, and compromise penalties depending on the amount involved.

Why waste your hard earned income on paying penalties, when you have a lot of opportunities to educate.

Learning Points:

• Understand how compensation is defined n the Tax Code, as amended;
• Learn what items of compensation, employee benefits, and other grants to employees are subject to withholding taxes;
• Learn what items are exempt from withholding tax on compensation (such as de minimis benefits, employer convenience rule, retirement benefits, etc.)
• Learn how to compute withholding tax on compensation, SSS deductions, Philhealth deductions and, Pag-ibig deductions;
• Learn how to prepare & file BIR Form No. 1601C monthly, BIR Form No. 1604CF & Alphalist attachment annually and,  BIR Form No. 2316 for employee’s certificates;
• Learn how compensation, salaries, wages, employee benefits, and other employee grants are being assessed by BIR;