Importance of Tax Forms In Applying For Jobs In Philippines

Tax Guides Reading Time: 6 minutes

In the Philippines, when applying for a job, understanding the importance of tax forms is crucial for both employers and job seekers. Tax forms, such as the BIR (Bureau of Internal Revenue) Form 2316, play a significant role in ensuring that employees comply with the country’s tax regulations. 

Whether you’re a first-time job seeker or looking to switch careers, knowing the importance of tax forms and how to properly manage them can significantly impact your hiring process. 

These forms streamline the hiring process and help determine your tax status and deductions.

What Are Tax Forms?

Tax forms are official documents issued by the Bureau of Internal Revenue (BIR) in the Philippines to track and manage an individual’s tax responsibilities.

These forms help the government ensure proper tax collection and serve as a record of an individual’s compliance with tax regulations. 

The most common tax forms used in employment are:

BIR Form 1902:

This is used for employee registration. It indicates your status as a taxpayer and is often required by employers when you start working.

BIR Form 2316:

This is the Certificate of Compensation Payment/Tax Withheld. It shows the total amount of compensation you’ve earned in a year and the taxes that have been withheld from your income by your employer

It is essential when filing your income tax return.

Why is a Tax Form Important in Job Applications?

In the Philippines, tax forms play a crucial role in the hiring process, especially when it comes to ensuring that you are complying with the tax laws.

Here are some reasons why tax forms are important:

  1. Verification of Tax Status: Employers use tax forms to verify that you are a registered taxpayer. In the Philippines, it shows that you’ve complied with tax regulations, which is necessary for employment.
  2. Correct Tax Withholding: According to your tax status, employers are required to withhold taxes from your salary. The tax forms help them to determine the correct amount of tax to deduct and remit to the BIR on your behalf.
  3. Government Compliance: The BIR requires employers to submit tax-related documents for their employees regularly. By submitting the correct tax forms, you help ensure that both you and your employer are compliant with tax laws.
  4. Building a Tax History: Having your tax forms in order from the beginning of your career helps establish a solid tax history. This can be beneficial when applying for loans, credit cards, or other financial services in the future.

How to Obtain the Required Tax Forms

Obtaining the required tax forms is relatively simple, but it requires some steps:

Get a Tax Identification Number (TIN): 

If you’re a first-time job seeker or new to the employment field, you need to register with the BIR to get a TIN. To do this: 

  • Visit the nearest BIR office, 
  • Fill out Form 1901 (for self-employed individuals) or Form 1902 (for employees).
  • Submit the necessary documents (e.g., birth certificate, government-issued ID, etc.).

Fill Out Form 1902: 

If you already have a TIN but haven’t registered with your current employer, you need to submit Form 1902. Your employer will usually assist you with this form during the hiring process.

Obtain Form 2316: 

After you’ve worked for a year, your employer will provide you with Form 2316, which summarizes your income and the taxes withheld.

This form will be given to you after the end of the financial year (usually in January or February).

NBI Clearance:

In addition to your tax forms, employers also require an NBI clearance to ensure there are no criminal records. You can apply for an NBI clearance online through the following steps:

  • Visit the NBI official website (https://nbiclearanceonline.ph/).
  • Create an account by providing your personal details.
  • Fill out the online application form and pay the required processing fee.
  • Book an appointment for your photo and fingerprint capture at an NBI center.
  • Visit the NBI center on your scheduled date to complete the process and receive your clearance.

Update Your Tax Forms (if Necessary): 

If you change jobs or experience a significant change in income, you must update your tax forms with the BIR to show your new employment situation.

Tax Forms for Fresh Graduates or First-Time Job Seekers

If you’re a fresh graduate or a first-time job seeker, you may not yet have tax records. Here are some tips for you:

  1. Get Your TIN: Apply for a TIN from the BIR if you don’t have one. This is essential for registering as a taxpayer. You can do this at any BIR office.
  2. Fill Out BIR Form 1902: As a new employee, you’ll need to submit Form 1902 to your employer, which will include your tax registration details.
  3. Obtain Form 2316: At the end of your first year, make sure you receive Form 2316 from your employer. This will help you with your future tax filings.

Employer Expectations Related to Tax Forms

Employers rely on tax forms for a few reasons:

  1. Tax Compliance: They use these forms to ensure they’re deducting the correct amount of tax from your salary. Having your tax form ready shows that you comply with Philippine tax laws.
  2. Salary and Benefits Calculation: Employers need to calculate your salary and benefits accurately, and tax forms play a significant role in determining the deductions to be made. Without the proper forms, there might be delays in processing your payroll or problems with benefits like SSS, Pag-IBIG, or PhilHealth contributions.
  3. Avoiding Fines: Employers are legally obligated to withhold taxes, and failure to do so could result in fines. By submitting the necessary tax forms, you help your employer avoid potential legal issues.

People Also Ask

Why is the tax form important when applying for a job in the Philippines?

Employers need it to process payroll taxes and ensure you’re properly registered for tax purposes. It is important for your legal employment status and salary deductions.

Can I apply for a job without submitting a tax form?

Most employers in the Philippines require a tax form before they can process your employment. Without it, they won’t be able to accurately deduct taxes from your salary and comply with legal requirements.

How do I get a tax form?

You can obtain a BIR Form 1902 from the Bureau of Internal Revenue (BIR) website or visit any BIR office to fill it out. If you’re already employed, your employer might assist you in filling out the form.

What happens if I don’t submit my tax form?

Failure to submit a tax form may delay your job application or even prevent you from being hired.

Additionally, it could lead to issues with your payroll processing, as the employer may not be able to properly detect taxes from your income.

Do I need to update my tax form if I change jobs?

Yes, you should update your tax form if you switch employers to ensure that your tax deductions are properly calculated. Moreover, you can use our BIR tax calculator for quick income tax computations.

Remember, if you previously submitted a tax form to one employer, you need to submit a new one to your new employer.

Final Words

The importance of tax forms in the job application process cannot be overstated.

Not only do these forms ensure that your taxes are properly taken out and filed, but they also ensure that you and your employer are compliant with the Philippine tax system. 

By preparing your tax documentation early and staying organized, you can avoid delays and complications when applying for jobs.

Make sure to complete your tax registration with the BIR, fill out the necessary forms, and keep track of your tax documents to enjoy a smooth employment process in the Philippines.