Part of the obligations of any employer to their employees is computing and paying their withholding taxes properly. Failure to do so with accuracy and in a timely manner could mean paying a hefty fine or serving a sentence of one to 10 years.
Employers properly paying withholding tax are not a moral obligation, but a legal one. According to Section 80(A) of the Philippine Tax Code, employers are legally bound to remit the withholding tax with the right amount to the BIR.
There are typically six types of tax violations that employers may be at fault, and they are:
If the employer is at fault with any of the violations mentioned above, their sanctions are at the mercy of the law. The guilty employers may be eligible for the following penalties and/or sentences:
Bringing down the number of occurrences of payroll errors or eliminating them altogether requires following through with good practices. Below are set of ways to reduce payroll errors:
Paying the employee’s withholding taxes with the correct amount and in a timely manner is the only way to be free from being punished by the law. Whether it was out of human error or on purpose, the repercussions could be substantially damaging to any business or corporations, not only financially but also in reputation and legal records.
Getting payroll done right is an important aspect of any business, and JustPayroll.ph can help. We could provide you with the tools (Philippine payroll software and biometric device) and services (outsourced payroll services and consultations) that’ll ensure that payouts and remittances to government entities are done on time without any discrepancies.
Discover how easy payroll can be by choosing us, simply give us a call at +63 (02) 808-4707 or fill out the form below to get in touch with our payroll customer care.