If you're running a business in the Philippines and have employees, one of your key responsibilities is to withhold and remit income taxes on your workers’ salaries. To do this, you’ll need to use BIR Form 1601-C, the Monthly Remittance Return of Income Taxes Withheld on Compensation.
In this post, we’ll walk through what this form is, who should file it, when it's due, and how to stay compliant with the BIR.
What Is BIR Form 1601-C?
BIR Form 1601-C is the form that employers use to report and remit the withholding tax on compensation—that is, the tax withheld from the salaries and wages of their employees.
This form is part of the expanded withholding tax system, and it helps the government ensure that income taxes are collected regularly and accurately throughout the year.
Who Is Required to File BIR Form 1601-C?
All employers, whether:
Corporations (large or small)
Sole proprietors
Partnerships
Government agencies
Non-profit organizations
If you have employees and deduct withholding tax from their pay, you are required to file this form monthly.
When Should You File It?
Due Date: On or before the 10th day of the following month.
Example: For compensation paid in April, file and pay on or before May 10.
Note: This form is not required in December, as that is covered by BIR Form 1604-C, the Annual Information Return.
How to File and Pay
There are two main options for filing BIR Form 1601-C:
1. eFPS (Electronic Filing and Payment System)
Required for large taxpayers, government agencies, and certain BIR-registered companies.
2. eBIRForms
For non-eFPS filers. Complete the form using the BIR eBIRForms software, then pay via:
Authorized Agent Banks (AABs)
Online payment portals (e.g., GCash, Maya, Landbank Link.Biz, UnionBank)
Make sure to get your payment confirmation and keep it with your records.
Key Fields in BIR Form 1601-C
TIN and RDO Code
Return Period – Month covered by the remittance
ATC (Alphanumeric Tax Code): Use "WI160" for withholding on compensation
Tax Rates – Based on the revised withholding tax tables under the TRAIN Law
Total Tax Withheld and Remitted
Schedule of Alphalist of Employees (SAE) – Must be submitted through Alphalist Data Entry and Validation Module (v7.1 or higher)
Common Mistakes to Avoid
Missing deadlines – Late filing triggers automatic penalties, surcharges, and interest.
Wrong ATC or tax codes
Incorrect computation of withholding tax – Always use the latest BIR withholding tax table.
Failure to submit the Alphalist of Employees – This is required along with 1601-C and must match the tax withheld figures.
Final Thoughts
BIR Form 1601-C is a critical part of your payroll and tax compliance process. It ensures that your employees’ income taxes are remitted accurately and on time, and that your business avoids any legal or financial issues with the BIR.
Keep accurate payroll records, stay updated on tax table changes, and file consistently every month. If you're unsure, it’s wise to consult a tax adviser or accountant to avoid costly mistakes.
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