In payroll software, employee payments are handled, tracked, and automated on-premises or in the cloud. Payroll accounting software that is robust, integrated, and appropriately designed may help businesses of all sizes stay in compliance with tax laws and other financial rules while also lowering costs. Establishing a payroll system can be a daunting task for those who are new industry and has no background in accounting. If you are in the same situation, you should look at BIR Form 1601-C. Are you familiar with it? Let's have a look at the general definition of BIR Form 1601-C.
What is BIR Form 1601-C?
When you are doing business in the Philippines, you are obliged by the law to act as Withholding Agents for the BIR. The BIR 1601-C is called the "Monthly Remittance Return of Income Taxes Withheld on Compensation.” You summarise your company's payroll and accounting software computation. The best part is no names or individual pay data are displayed. Philippine law mentions that you can break the components into taxable and non-taxable classifications.
A notable exception sets for the December report - it must be filed on the 25th of January of the following year, instead of the tenth of the subsequent month.
What are the penalties?
There will be a charge of 25% for each of these violations:
- Taxes or instalments are not paid on or before the due date if you didn’t file a return.
- On or before the due date, fail to pay the entire or part of tax shown on the return, or the total amount of tax due for which no return is needed.
- Filing a return with anyone other than the person or office with whom it is required, except as otherwise authorised by the commissioner.
- The notice of assessment prescribes a deadline for paying the deficiency tax.
- On any unpaid amount of tax, interest will be assessed at a rate of 20% per annum, or a higher rate as prescribed by rules and regulations, from the date specified for payment until the amount is settled completely.
- Whenever the payment is made based on a return before the discovery of fraud, 50% of the tax or deficiency tax will be charged:
- Fraud return is deliberately made.
- A failure to file a return by the Code or the rules and regulations that govern it.
- Compromise Penalty
What are the requirements of this form?
- Proof of remittance and the previous return is a must for amended returns.
- DOLE Regional/Provisional offices-operations division/unit receives a copy of the list from the private sector.
- BIR Form No. 0605 should be used for advance payments.
- Public sector circulars from the department of budget and management (DBM).
Conclusion
The data in this article will provide you with the information you need about the BIR Form 1601-C. Whether you are a small business or a large one, you will benefit from this incredible accounting software for payroll. Consulting us can be more beneficial for you. We will help you to automate the payroll process for small and large businesses. Visit us now.