Year-end tax annualization, Form 2316 and the alphalist
Compare tax withheld with tax due for the year, then print each employee's 2316 and prepare the alphalist.
Withholding during the year is an estimate. At year-end the true tax is worked out on the whole year's pay.
Run the annualization
HR › Tax Annualization › create a run for the year and click Compute Annualization.
For every employee with posted payroll, GodoERP:
- Totals taxable compensation for the year. Minimum wage earners' qualifying pay is treated as non-taxable.
- Applies the BIR annual tax brackets to get Annual Tax Due.
- Compares it with what was actually withheld.
The result is a refund (over-withheld) or a collection (under-withheld) per employee. Check the adjustments before going further.
Approve and post
Approve the run, then Post it to GoDoBooks. An approved run can be reopened for changes. A posted run must be voided first.
Note: A refund is not paid out automatically. Pay it through payroll or a manual journal, and review it with your accountant.
Form 2316
From the run, open an employee's Certificate of Compensation Payment / Tax Withheld (BIR Form 2316) and Download PDF, or generate all at once. Check each employee's TIN, address and employer details before issuing.
Alphalist
Alphalist is a data-preparation preview of your Alphalist of Employees. Review it, then confirm the final file in BIR's own validation tool before you file.
Important: Run annualization after December payroll is posted, and before issuing 2316 forms.