Year-end: 2316, 1604-C, 13th month
The year's last payroll jobs fall between 24 December and 28 February. Here they are on one timeline, worked through for Kuting Kitchen's two staff.
← 8.2 SSS, PhilHealth, Pag-IBIGThe year's last payroll jobs
Monthly payroll has a rhythm: payslips, contributions, the 1601-C. The end of the year adds a few one-off jobs, between 24 December and 28 February.
Kuting Kitchen's first full year with Jun and Mae is 2026. Here's what it owes them, and BIR, as the year closes.
13th month pay, by 24 December
Employees get a 13th month pay, paid on or before 24 December. It's one-twelfth of the basic salary they earned during the year.
₱18,000 × 12 ÷ 12 = ₱18,000 each
Jun and Mae worked the whole year, so each gets ₱18,000: ₱36,000 for the payroll.
Is it taxed?
Not up to a yearly ceiling. The 1601-C lists it under non-taxable compensation (item 17, "13th Month Pay and Other Benefits"), and the 2316 prints the ceiling beside it: ₱90,000 a year for the 13th month and other benefits together. Anything above it joins taxable pay.
Jun's and Mae's ₱18,000 each is well inside it. Check the current ceiling before paying large bonuses.
December's 1601-C, by 15 January
December's 1601-C is the one exception to the 10th: it's due 15 January (eFPS filers pay by 20 January).
For Kuting Kitchen, item 14 holds December's pay and the 13th month together, ₱72,000, with the ₱36,000 13th month taken out again in item 17. Taxes withheld: still ₱0.
A 2316 for each employee, by 31 January
The BIR Form 2316 is the certificate of compensation paid and tax withheld: the employee's year in one page. Give one to each employee by 31 January. This is BIR's real form (September 2021 version), filled in for Mae's 2026:
| 29 | Basic salary: ₱216,000 less her shares | ₱197,400 |
|---|---|---|
| 34 | 13th month pay | ₱18,000 |
| 36 | Her SSS, PhilHealth and Pag-IBIG shares | ₱18,600 |
| 19 | Gross compensation, all of it non-taxable | ₱234,000 |
| 28 | Taxes withheld | ₱0 |
Why is her salary in the non-taxable part? Item 29 includes the pay of anyone earning ₱250,000 or less. If someone leaves mid-year, their 2316 is due on the day of their last pay.
The 1604-C and alphalist, by 31 January
The 1604-C is the annual information return of compensation tax withheld. With it goes the alphalist of employees: every employee, their pay and their tax for the year.
The alphalist is a DAT file made with BIR's Alphalist Data Entry and Validation Module, attached in eFPS or emailed to esubmission@bir.gov.ph. Missing it costs ₱1,000 a time, up to ₱25,000 a year (₱500 and ₱12,500 for micro and small taxpayers).
Signed duplicates, by 28 February
Employees who qualify for substituted filing don't file their own income tax return: their 2316 stands in for it. For them, the employer sends BIR the signed duplicate 2316s by 28 February.
Who qualifies? The employee signs the declaration at the foot of the 2316: pay from only one employer, nothing but compensation income, and tax withheld equal to tax due. Jun and Mae work only for Kuting Kitchen, so theirs go in. Get both signatures in January, when you hand the forms out.
The four year-end tasks
| # | Task | Due, for 2026 |
|---|---|---|
| 1 | 13th month pay | Thu 24 Dec |
| 2 | A 2316 to each employee | Mon 1 Feb |
| 3 | 1604-C and alphalist to BIR | Mon 1 Feb |
| 4 | Signed 2316 duplicates to BIR | Mon 1 Mar |
| + | December's 1601-C | Fri 15 Jan |
Why 1 February, not 31 January? A date that lands on a weekend moves to the next working day: in 2027, 31 January and 28 February are Sundays.
Pop Quiz: Elle's new packer
Elle hired a packer on 1 May 2026 at ₱18,000 a month. By December, the packer has worked 8 months.
What is the packer's 13th month pay?
₱18,000 × 8 months = ₱144,000 earned; ÷ 12 = ₱12,000.
By when must it be paid?
The 13th month pay is due on or before 24 December.
The packer resigns on 15 August 2027 instead. When is their 2316 due?
When employment ends, the 2316 is given on the day of the last payment, not at year-end.
General information for learning, not tax advice. Kuting Kitchen, its staff and Elle are fictional; the salaries are illustrative. The tax-free ceiling on 13th month pay and other benefits, and who qualifies for substituted filing, are set by the Tax Code and BIR rules: confirm them with your RDO or accountant.
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