January is a busy month for the Philippine Bureau of Internal Revenue (BIR). In the first month of the year, the BIR is expecting multiple submissions of requirements, in which one of those is the simultaneous rendition of your company’s alphalist and 1604CF.
The BIR expects every employer to submit the alphalist and 1604CF no later than Jan 31. Otherwise, none or later submissions would result in either receiving fines, bad records, or both.
With the countdown to the BIR deadline for alphalist dwindling down, there is no better time to start ensuring that all is needed for the submission than now.
First of all, What is the BIR alphalist?
In a nutshell, the BIR alphalist consists of the complete list of the names of employees (arranged in alphabetical order) from the previous year, regardless if they have resigned or quit before the year ends.
Besides the list of names, the alphalist also contains the following details about the employees:
- Tax Identification Numbers (TIN)
- Gross compensation (as the salary provided by the current, and if applicable, the previous employer(s) in the same year.
- Tax deductions (from salaries)
- Other computations (such as the tax refunds and tax payables)
And the BIR 1604CF form?
To be submitted with the employee alphalist, this form includes a list of employees with their details that are organized accordingly to the following BIR schedules:
- Schedule 7.1: Alphalist of employees terminated before December 31 (reported under BIR Form 2316)
- Schedule 7.2: Alphalist of employees whose compensation income are exempt from withholding tax but subject to tax income (reported under BIR Form 2316)
- Schedule 7.3: Alphalist of employees with no previous employers as of December 31 within the year (reported under BIR Form 2316)
- Schedule 7.4: Alphalist of employees as of December 31 within the year
- Schedule 7.5: Alphalist of minimum wage earners (reported under BIR Form 2316)
This form could be completed and downloaded by using the Alphalist Data Entry and Validation Module.
As of the publication of this article, the latest version of the module is 6.1. Simply download the Alphalist Setup Zip then follow the prompts to get the latest 1604CF form.
Submitting your BIR Alphalist and 1604CF
After accomplishing, organizing, and reviewing the BIR Alphalist and 1604CF, submitting them before or on January 31st is the next step. Here are a few reminders about the submission:
- Submissions are done in triplicates (three copies each)
- Employers with 10 or more must submit the files in a soft copy in a USB or CD
- The BIR Alphalist and 1604CF should be submitted to the same RDO to where your business registration falls under.
Missing the date
When it comes to submitting the complete or corrected requirements, BIR is strictly implementing that it must be all in on or before January 31.
Late, incorrect, or non-filing would construe a penalty of P1,000 up to P25,000 in a calendar year, according to Revenue Memorandum Order No. 7-2015.
Besides the penalty, the most difficult part to overcome is dealing with an “open case” with the BIR. A case could last up weeks, months, or even years. This is because each case is reviewed and inputted manually in the BIR system.
Having an open case would make it difficult for your company to get tax clearances, renewing importer accreditation, and others.
The countdown of how many days to the final submission date for the BIR Alphalist and 1604CF is now on the single digit. Getting it all in properly and in time is worth the time and effort to ensure compliance with BIR regulations.
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