Guidelines and Procedures for the Taxpayer Record Update Program of Employees Earning Pure Compensation Income in the Revenue District Offices Nationwide (TRU Phase II)

March 6, 1997 REVENUE MEMORANDUM ORDER NO. 09-97 SUBJECT : Guidelines and Procedures for the Taxpayer Record Update Program of Employees Earning Pure Compensation Income in the Revenue District Offices Nationwide (TRU Phase II) TO : All Revenue District Officers, Regional Data Center Head and Others Concerned I. OBJECTIVE'S A. To set guidelines and procedures in updating the taxpayers' records for employees earning pure compensation income B. To define the roles and responsibilities of concerned personnel at the Revenue District Offices (RDO). II. COVERAGE AND VENUE OF UPDATE This RMO shall cover all employees earning pure compensation income, whether they are exempted in filing income tax returns or not. The employees will update their registration in the RDO that has jurisdiction over the employer's office (head office and each and every branch), regardless of the employer's manner of withholding taxes (whether centralized or decentralized). The following venue of update shall apply: Category Conditions Venue 1 Employee whose spouse has Employee shall update his/her no source of income records through his/her employer. 2 Both spouses derive purely Both spouses will update their compensation income only records through their respective employers. 3 Both spouses derive purely Updating of records must be done to compensation income with the main employer. Other employers multiple employers must be informed of the update by providing them with a copy of the duly stamped and validated Form 1902. 4 One spouse is an employee The spouse who is engaged in and the other spouse is business shall update his/her engaged in business records at the RDO that has jurisdiction over the business. The spouse who derives purely compensation income shall update his / her records through his /her employer. 5 Both spouses are employed Each spouse shall update his her and engaged in business records at the RDO where their respective businesses are located. Strict adherence to the provisions of TRU Phase I under RDO No. 35-96 is required. There is no need for either spouse to update their individual records. However, their employers must be informed of the update by providing them a copy of the duly stamped and validated Form 1901. 6 One spouse is employed in the The spouse who is employed in Philippines while the other the Philippines shall update spouse is an Overseas Contract his/her records through his/her Worker (OCW)/Non-Resident employer. Citizen (NRC) The spouse who is an OCW/NRC shall update his/her records through his/her employment agency. In cases here the spouse was hired directly, updating of records must be done at the RDO that has jurisdiction over his/her legal residence. 7 Both spouses are OCWs/NRCs Each spouse shall update his/her records through their respective employment agencies. In cases where the spouse was hired directly, updating of registration must be done at the RDO which has jurisdiction over his/her legal residence. III. APPROACH The approach defined for this program is based on the "Update through the "employer" concept. This-is intended to ensure that all employees, whether they are required to file an income tax return or not, are covered by the TRU program. IV. FORMS A. Required Forms and Attachments The following forms should be accomplished by the employees. Form Name No. of Copies Attachments (If Applicable) Revised Form 1902 Three (3) Copies 1. Birth Certificate of (Consolidated version of The Employee, registrant Form 1902 Application Employer and the 2. Marriage Contract or court for Registration for RDO will each decision if legally separated Individuals Earning Purely get a copy. 3. Birth Certificate of each Compensation Income, qualified dependent OCWs/Other Non-Resident 4. If the wife is claiming Citizens and One-Time additional exemptions for the Taxpayers and Form 2305 children Exemption Certificate) Waiver of exemptions by the husband Certificate of Employment of the husband, if working abroad 5. Medical Certificate for dependents more than 21 years old, if physically or mentally incapacitated 6. Court decision of legal adoption of minor children 7. Current Certificate of Income Tax Exemption of Senior Citizen, for head of a family claiming qualified senior citizen as a dependent Form 1925 (TIN Card One (1) copy 2" x 2" colored picture with white Capture Form) background, taken within the last 6 months B. Deadline for Submission The duly-accomplished revised Form 1902 should be submitted by the employees to their employer on or before the deadline specified by the employer. The employer, in turn, shall submit the said forms to the RDO that has jurisdiction over their office within thirty (30) days after the receipt of the forms. Each RDO should record the date of receipt of forms by each employer to accurately monitor the 30-day deadline. For pilot RDOs (i.e. Binondo, Quiapo, Intramuros, Paraaque and North Cebu), including RDO 39-Quezon City South, employees are required to submit Form 1925 with the required picture, upon the submission of the revised Form 1902. For non-pilot RDOs, Form 1925 shall be submitted within six (6) months after the receipt of forms by the employer together with the required attachments. Employees can submit the required attachments if they are already available upon submission of the Revised Form 1902. However, if the requirements are not yet available; on the time of submission of the Revised Form 1902, the employee can submit the required attachments within six (6) months after the submission of the TRU Form, for both pilot and non-pilot RDOs. V. PROCEDURES FOR COMPLIANCE OF RDO All RDOs shall comply with the Checklist of Activities, as attached in this RMO (see Attachment A). VI. REPORTING REQUIREMENTS All Revenue District Officers should submit the required weekly monitoring reports to the TRU Team at the 6/F National Office Building (see Attachment B) VII. EFFECTIVITY This order shall take effect immediately. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue ATTACHMENT A-1 CHECKLIST OF ACTIVITIES Preparation and Conduct of TRU Briefing Get the following Employer/Brand information from any available source in the RDO (e g. Form 1604 Alphalist Alphabetical List of Employees/Payees from whom Taxes were Withheld, Form 1558 Payment Form for Registration Fee, etc.): Name Address Telephone No. of Employees Log the said information in the TRU Program Worksheet For Employers. (see Attachment B) Requisition the necessary forms (Revised Forms 1902 and 1901, Form 1925) from the Administrative Section if forms on site are not adequate. llcd Organize RDO-based briefing sessions for employers. Contact the concerned employers about the date, time, place, and purpose of the briefing. Request the employer to send a representative (preferably a person from their Human Resources Department) to attend the briefing. Conduct the TRU briefing. Distribute the hand-out for the required format of the diskette that will be submitted by employers with computerized employee records. pred ATTACHMENT A-2 CHECKLIST OF ACTIVITIES Receipt and Verification of TRU Forms and Diskettes Receive the duly accomplished TRU Form from employer. Record the employer's compliance to the 30-day submission period. If the employer has computerized employee records and submitted diskettes containing employee records, receive the diskettes and replace them. Check if the correct number of copies of the required forms is submitted. Also check on the following: All mandatory and applicable fields are filled up Inconsistent information within the forms Taxpayer and employer's signature on all copies Mark the fields with invalid/lacking invalid information on the form. This will aid employees in identifying the information needed. Return forms with incomplete and invalid information. Ask the employee to supply the correct or missing information. liblex Stamp validated TRU forms. Return two copies of stamped TRU forms to employer (1 copy for the Employer and 1 copy for the Employee). ATTACHMENT A-3 CHECKLIST OF ACTIVITIES Forms Distribution Batch the appropriate number of forms for each employer. The number of forms to be included in each batch will be determined by the number of employees working under that employer. One set of forms must go to one employee. Distribute the batch of forms to employers immediately after the TRU briefing. ATTACHMENT B ATTACHMENT C