F.A.Q.
(Frequently Asked Questions)on Tax Annualization for New
Hires with Previous Employer/s
Q1. What will I do with the BIR Form 2316 issued by my previous employer?
A1. Submit it to Accenture via Accenture Support following this selection: Business Process Support >
Business Support Request > Employee Tax Support > Country (Philippines) > Category (BIR Tax
Compliance) > Sub Category (BIR Tax Compliance> 2316 –From Previous Employer)
Q2. When should I submit it to Accenture?
A2. Immediately as soon as available. Note that it is expected that you exert all efforts to secure this
document from your previous employer.
Q3. What will I check in the BIR Form 2316 issued by my previous employer?
A3. 2316versionis January 2018; year is the current calendar year; your TIN is valid; signed by both the
employee and employer; details are accurate and readable.
Q4. Why do I need to submit my 2316 issued by my previous employer to Accenture?
A4. Accenture, as your present employer, is required to consolidate your earnings from previous employer and
do annualize computation of taxes. Accenture would need the details of your earnings to apply the correct
tax rate and compute the tax.
Q5. When will Accenture do the annualize computation?
A5. Accenture annualizes your income including income from previous employer every December.
Q6. What is the implication if I do not submit my 2316 issued by my previous employer?
A6. You will be responsible for the consolidation of your earnings from Accenture and previous employer/s,
compute for your tax, where in most cases, it may result to additional taxes, which you will pay it to BIR
through filing of annual income tax return (ITR)due every April15.
Q7. How much is the impact to my net pay in December because of the annualization?
A7. The impact will vary from employee to employee depending on the amount of taxable earnings, applied
nontaxable thresholds, and applicable tax rate. It may result to additional or reduced taxes. Any additional
tax will be deducted one-time from your next payroll and may result to zero or minimal.
Q8. Can the deduction be on a staggered basis?
A8. No, since this is already tax owed and needs to be remitted to the BIR in full.
You can refer to BIR Revenue Regulations No. 11-2018 (page 36) for illustrations on consolidation of
earnings of employees with previous employer. You can also use the BIR Withholding Tax Calculator to
approximate your taxes. These materials are accessible in the BIR website:[Link]
The following may impact your net pay during annualization:
1st 90,000 non-taxable bonuses
Catch-up tax due to tax rate difference
Q9. How is the 90,000 nontaxable threshold on 13thmonth pay and bonuses is applied?
A9. The 90,000 nontaxable threshold is applied on the consolidated 13thmonth pay and bonuses. If you have
already claimed the 90,000 nontaxable threshold in your previous employment, you are no longer entitled
to claim another 90,000 during annualization.
Q10. What is the catch-up tax rate?
A10. In your previous employer, your income tax bracket is based on the earnings during the months served,
which in most cases upon consolidation of earnings with Accenture, you will fall on a higher income tax
bracket. Therefore, there is a catch-up tax rate to correct the tax rate.
I have read and understood the explanation provided in this document.
CONFORME:
eSignature: {{Sig_es_:signer1:signature}}
Name: Janna Erika Hernandez
Date: {{Dte_es_:signer1:date}}
