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13th month and Tax Refund

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1 13th month and Tax Refund on Tue Sep 26, 2017 5:29 pm

ch3ch3


Arresto Menor
Situation:

I'm hired in company A(June2015),  then after more than a year, they build a new company B(Joint venture with 1 other company C) and made us sign a contract(Sept 2016) that states we will get what we have in our previous company. We didn't get any separation pay since verbally they said that it's just a continuation of our previous job. But the problem arises when we discovered that the company B is not yet registered in SEC, as a consequence, our sss, pagibig, philhealth and tax has not been payed by company B, but it was deducted to our salary. By June 2017, they come up with evaluation and rate me most with 1(lowest) even though i'm doing more than my Job title, and give me 1 month to do a lot of jobs to save my position.  After the evaluation, they want us to sign another contract that states we have to be a consultant employee of company C. I decided to resign last June 21, 2017  but they didn't acknowledge in the email although they verbally know. They already give the refunds of last years deduction (sss pagibig philhealth and tax). Now, I'm after my 13th month pay, and tax refund since they deducted taxes(which they did not pay to BIR due to the SEC issue) last Jan-June 2017, but they are pointing finger to one another this time that i think, they're ignoring my follow ups. I'm also worried of how I will be affected by the unpaid taxes from BIR.

What could be my legal actions towards this situation?

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2 Re: 13th month and Tax Refund on Mon Oct 02, 2017 11:38 am

gigiresu


Arresto Menor
We have an employee who resigned from his previous employer. She was claiming that she should not be deducted any withholding tax because she has overpayments from her previous employer and is entitled to a refund. How should we process this? Should we simply check her 2316 and move from there? Should she have been given a refund by her previous employer?

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3 Re: 13th month and Tax Refund on Mon Oct 02, 2017 1:03 pm

mikos23


Reclusion Perpetua
Check the 2316.

tax refund should be done by the previous employer. Your responsibility is to deduct the taxes earned from your company.

Btw, you will need the 2316 to compute the annualized tax of the employee. if the tax was returned... you should deduct it from her, otherwise you are liable for it.

Hope this helps.


gigiresu wrote:We have an employee who resigned from his previous employer. She was claiming that she should not be deducted any withholding tax because she has overpayments from her previous employer and is entitled to a refund. How should we process this? Should we simply check her 2316 and move from there? Should she have been given a refund by her previous employer?

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4 Re: 13th month and Tax Refund on Mon Oct 02, 2017 1:07 pm

gigiresu


Arresto Menor
Thank you so much for your prompt reply. Presupposing she joined latter part of the year (Sept) with no previous employer, is it okay to apply the tax refund immediately since the taxes in her total annual income will not cover her total exemptions? Or should we withhold her taxes, remit it to BIR, and declare her refund at the end of Dec?

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5 Re: 13th month and Tax Refund on Mon Oct 02, 2017 1:42 pm

lukekyle


Reclusion Perpetua
please check with the BIR but from what i remember if the employee has more than 1 employer in a single year, you (the current employer) should not withhold any taxes, it will be the employee who shall be responsible to pay his own taxes for that year.

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