BIR Ruling No. 056-61

February 17, 1961 BIR RULING NO. 056-61 This refers to your letter dated . . . requesting our opinion on your following query: cdll "We should like your opinion on the correct withholding tax table to use in a case where employees on the monthly salary basis are paid four times a month. One fourth of the monthly salary is paid on the 8th, the 15th, the 23rd and the end of the month. To save clerical work the employer desires to deduct the withholding tax only on the last payday for the month; the amount of tax to be withheld will, however, be based on the total monthly salary." In reply thereto, I have the honor to inform you as follows: Under Article 1(b) of Supplement A to Title II of the Tax Code, the term "payroll period" means a period for which a payment of wages is ordinarily made to an employee by his employer. It appearing that the employees' wages are reckoned by the month, their payroll period is the monthly payroll period. Accordingly, in determining the tax to be withheld on their wages, the monthly withholding table shall be applied. cdt Under the regulations, the tax shall be deducted and withheld as and when wages are paid, either actually or constructively. Accordingly, the employer concerned should deduct and withhold the pro-rata portion of the tax on the monthly salaries of its employees during the four paydays.