BIR Form 1601-C or Monthly Remittance Return of Income Taxes Withheld on Compensation is filed by the Employer who is responsible for deducting and withholding taxes on compensation paid to employees.

• Employees (EEs) are deducted every payroll cut-off (Daily, Weekly, Semi-Monthly, or Monthly payroll) for income taxes based on the Bureau of Internal Revenue (BIR) tax table
  Reminder: No tax will be deducted for employees tagged as Minimum wage earners. You may enable this on ZipHR by enabling Wage tax exempt
• Employers (ERs) must remit the Income-tax withheld from employees to BIR 
• The return must be filed and paid on or before the 10th day of the following month 
  • For EFPS filers, the deadline for filing and payment of the return shall be 5 days later than the deadline set above

ZipHR TAX CALCULATION

• Compensation Range - Compensation basis that ZipHR will use in the computation of income tax. This is computed as:
  TOTAL WAGES + TAXABLE OTHER PAYMENTS - CONTRIBUTIONS (EE Share)
  

  Total wages	sum of basic salary, tardy/absences, overtime, holiday pay, and night differential.
  Taxable Other Payments	sum of Other payments tagged as regular on the tax status of Other payment types
  Contributions (EE Share)	sum of SSS, PhilHealth, Pag-ibig contributions & OP Union Dues that EE contributed

  Note: EEs tagged as Minimum wage earners on ZipHR are not subject to income tax computation and deduction.
  • • After computing the Compensation basis, ZipHR will now compute the Prescribed withholding tax based on the BIR Withholding Tax Table:
      

1601-C Form Mapping

Let's dive into how this report is mapped in ZipHR!

1. For the Month (MM / YYYY) - Month and Year of the report
2. Amended Return? - Yes or No (if applicable)
3. Any Taxes Withheld? - Yes or No
4. No. of Sheets attached - if applicable
5. ATC

GENERATE REPORT

ZipHR also provides a report for the 1601-C report aside from the automatic calculation!

Go to Reports>Taxes & Select 1601C
Select the year and month of the needed report
Filtering by Subsidiary is also available (use if multiple companies are included in one ZipHR account and need to generate separate reports per subsidiary)
Click CREATE REPORTS
To verify the information & computations, click the PREVIEW button to download the report. The report is available in the following format: 1601C Employee List (Excel) - shows the summarized data of income per employees 160IC Company File (PDF) - show the data of income in the required format of BIR
Once verified, please click CREATE FINAL REPORT
Go to  Payroll>View reports to view & add other details to the report
You may add additional details such as Payment details or notes regarding the filing.   You can also upload another file on this report as a reference.