BIR Form 1601-C: monthly withholding tax remittance on compensation

BIR Form 1601-C is the *Monthly Remittance Return of Income Taxes Withheld on Compensation*. Every employer that withholds tax from employees files it for each month, reporting total compensation paid and the tax withheld, and pays the tax to the BIR. For manual and eBIRForms filers, the return is generally due on or before the 10th day of the following month, while eFPS filers follow a staggered schedule based on their industry group. December's return has a later due date, in January.

Deadlines and filing channels change. Confirm current schedules on the BIR website.

What goes into the 1601-C

The return summarizes the month's payroll for one employer (one TIN and branch code):

• Total compensation paid during the month
• Non-taxable compensation, such as statutory minimum wage and related premium pay of minimum wage earners, 13th month pay and other benefits within the exemption, de minimis benefits and mandatory employee contributions
• Taxable compensation
• Total tax withheld, and adjustments from previous months
• Penalties, if filed late

The figures must come from your approved payroll register for all cutoffs paid within the month.

Who files, and how often

• Every employer, including each separate company in a group, files under its own TIN.
• Branches with separate branch codes follow BIR rules on whether returns are consolidated at head office or filed per branch.
• Months with no withholding: check current rules on whether a return is still required for months with no tax withheld.

Filing channels

Large taxpayers and certain groups are required to use eFPS (Electronic Filing and Payment System). Others use eBIRForms with payment through authorized agent banks or electronic payment channels. Under the Ease of Paying Taxes (EOPT) Act, taxpayers may file and pay electronically or manually with any authorized agent bank, revenue district office or other authorized channel, which helps groups with branches in several cities.

Reconciliations that prevent problems later

The 1601-C feeds your year-end reports. If the monthly figures are wrong, your annualization, BIR Form 2316 and 1604-C alphalist will not reconcile. Every month:

1. Payroll to 1601-C: total taxable compensation and tax withheld on the return equal the sum of the month's approved payroll registers.
2. 1601-C to general ledger: the withholding tax payable account clears to zero after payment.
3. Payment to return: amount paid equals tax due on the return, with the confirmation filed.
4. Year to date: the running total of twelve 1601-C returns will need to match the alphalist and the 2316s.

Controls for multi-company groups

Groups with several legal entities often process payroll centrally. That works only when each employer's data stays separate:

• One payroll configuration and register per employer TIN
• A filing calendar that lists every entity, its channel and its due date
• Named owners for preparing, reviewing and paying each return
• A dashboard showing filed and paid status per entity per month

Read more in payroll for multiple branches and companies.

Late filing and corrections

Late filing or payment generally attracts surcharge, interest and compromise penalties. If you discover an error, consult your adviser on filing an amended return and on how to adjust in later months. Errors that are found and fixed monthly are far cheaper than errors found at year-end.

Producing 1601-C figures from payroll

Your payroll system should produce a monthly summary per employer that maps directly to the 1601-C lines, built from approved cutoffs. Cirquolus Payroll includes withholding tax workflows, payroll approvals and annualization so monthly and year-end reports draw on the same data.

Frequently asked questions

When is the deadline for BIR Form 1601-C?

For manual and eBIRForms filers, generally on or before the 10th day of the following month, with a later January due date for December. eFPS filers follow staggered deadlines by industry group. Check current BIR rules.

Is 1601-C filed monthly or quarterly?

Monthly, for withholding tax on compensation. The annual information return is BIR Form 1604-C.

Do I file 1601-C for each company in my group?

Yes. Each employer files under its own TIN. Branch filing depends on BIR registration and rules.

What is the difference between 1601-C and 1604-C?

1601-C is the monthly remittance return. 1604-C is the annual information return of compensation and taxes withheld, filed with the alphalist of employees.