Prescribing the Procedures in the Filing and Processing of the Employees' Compensation and Withholding Exemption Certificate (BIR Form No. W-4) of Teacher's and Non-teaching Personnel of the Department of Education, Culture and Sports Paid Through the Payroll Services Division

December 12, 1994 REVENUE MEMORANDUM ORDER NO. 69-94 SUBJECT : Prescribing the Procedures in the Filing and Processing of the Employees' Compensation and Withholding Exemption Certificate (BIR Form No. W-4) of Teacher's and Non-teaching Personnel of the Department of Education, Culture and Sports Paid Through the Payroll Services Division TO : All Internal Revenue Officers and Others Concerned I. OBJECTIVES This Order is issued to: 1. Prescribe the procedure in the filing and processing of the Withholding Compensation and Exemption Certificate (BIR Form W-4) of School Teachers and Non-teaching personnel of the Department of Education Culture and Sports (DECS)paid through the Payroll Services Division (PSD). 2. Delineate the duties and responsibilities of DECS and the Bureau of Internal Revenue (BIR) in the receipt, processing and transmittal of BIR Form No. W-4. (W-4) LexLib II. PROCEDURES The following duties and responsibilities shall be strictly perform by all concerned: DEPARTMENT OF EDUCATION, CULTURE AND SPORTS The Department of Education, Culture and Sports (DECS) based on the Memorandum of Agreement, with Bureau of Internal Revenue shall perform the following duties: A. PAYROLL SERVICES DIVISION/ACCOUNTING DIVISION: 1. Send the Transmittal List of the W-4 (Annex A) to each Division Superintendent, duly filled-up with names of teachers/non-teaching personnel whose salaries are paid by PSD. 2. Advise the Division Superintendent to request from the Regional Office, Collection Division, BIR, having jurisdiction over the Division/District concerned copies of blank W-4 based on the no. of teachers/non-teaching personnel listed in the transmittal form. prcd 3. Accomplish the Schedule B portion of the W-4 duly filled-up by Teachers/Non-teaching personnel transmitted by the Revenue District Officer (RDO). 4. Submit the duly accomplished copies of the W-4 to Revenue District Office No. 43-Pasig, and have all copies of the form stamped "RECEIVED" by said office. 5. Retain duplicate copy of the W-4 duly received by RDO No. 43 for file, and transmit the triplicate copies to the Employees/Teachers thru the Division Superintendent/Principal, for their file. 6. Retain the duplicate copy of the transmittal list duly received by RDO No. 43 for file and future reference. 7. Encode information gathered from the file copy of the W-4 received for the purpose of computing the correct withholding tax of teachers/non-teaching personnel. B. DIVISION SUPERINTENDENT 1. Receive the transmittal lists with names of teachers/non-teaching personnel from PSD. 2. Request for copies of blank W-4 form from the Regional Office, Collection Division, BIR, based on the transmittal listings supplied by PSD. 3. Distribute said lists to the District Supervisors having jurisdiction over the teachers/employees named in the list within ten (10) working days after receipt. 4. Receive from PSD the triplicate copies of the W-4 duly stamped "RECEIVED" by RDO No. 43 for distribution to Teachers/Employees for the latter's file. C. DISTRICT SUPERVISORS: 1. Receive the transmittal list with names of teachers/non-teaching personnel under their jurisdiction and the blank W-4 forms from the Division Superintendent. Distribute the W-4 to the corresponding Principals/Head Teachers under them within two (2) working days after receipt. 2. Collect all accomplished W-4 from the Principals/Head Teachers and verify if all the teachers/non-teaching personnel under his jurisdiction have submitted aid W-4 on time. 3. Review each W-4 transmitted by the principals/head teachers. 4. Complete the transmittal list based on the W-4 submitted by each teacher/non-teaching personnel and sion in the space provided for that purpose. 5. Transmit said lists to the Collection agent of the Municipality where the office of the District Supervisor is located or to the Revenue District Officer having jurisdiction over the school district in placed where there are no Collection Agents assigned, within ten (10) working days after receipt of W-4 from the Principals/Head Teachers. D. PRINCIPAL/HEAD TEACHER: 1. Distribute the W-4 to all teachers/non-teaching personnel under him-her within two (2) working days from receipt of said form. 2. Require Teachers/non-teaching personnel to accomplish the W-4 in triplicate upon receipt thereof following the instructions in Annex "B" attached and submit the same within the day. 3. Prepare and submit the completed transmittal list together with the duly accomplished W-4 to the District Supervisor within five (5) working days after receipt of said form from the teachers/employees. LibLex BUREAU OF INTERNAL REVENUE: A. REGIONAL OFFICE: CHIEF COLLECTION DIVISION 1. Furnish the Division Superintendent within the jurisdiction of the region concerned, copies of blank W-4 form based on the no. of teachers/non-teaching personnel listed in the transmittal form. (by personal delivery). B. COLLECTION AGENT: 1. Stamp "RECEIVED" only the copies of the transmittal list. (Do not stamp copies of BIR Form No. W-4) 2. Review/verify entries and information stated in the duly accomplished W-4 and transmittal list on the correctness of the exemptions claimed by Teachers/Non-teaching personnel. 3. Indicate the corrections/revisions of the Collection Agent/RDO at the right side portion of the transmittal list with the heading "CORRECTION/S OF COLLECTION AGENT/RDO (if any)". 4. Sion the transmittal list, and transmit the same together with the accompanying W-4 to the Revenue District Office concerned within one (1) week after receipt thereof. C. REVENUE DISTRICT OFFICE (RDO): 1. Send the transmittal list and the duly filled-up W-4s to the DECS ATTN: Accounting Division, Pasig, Metro Manila within five (5) working days after receipt from the Collection Agents. (Do not retain copy of these forms). In places where there are no Collection Agents assigned, follow the functions of the Collection Agents mentioned in A above. D. REVENUE DISTRICT OFFICE NO. 43 PASIG: 1. Stamp "RECEIVED" all copies of the W-4s of employees/teachers submitted by PSD. 2. Give back the duplicate and triplicate copies of the W-4 to PSD after they are stamped "RECEIVED" to be distributed as follows: Duplicate PSD Triplicate Teachers/Employees 3. Transmit original copies of the duly received W-4 and the original copy of the transmittal list, to the Information Systems Operations Service, BIR. E. INFORMATION SYSTEMS OPERATIONS SERVICE: 1. Receive original copies of the W-4 with corresponding transmittal list from Revenue District Office No. 43. 2. Encode information gathered from the W-4 submitted for reference. (i.e. Name and Address of Employee, Name and Address of Employer and the Total Amount of Personal and Additional Exemptions Claimed). 3. Transmit back to RDO 43 Pasig the processed original copies of W-4 for RDO file. III. EFFECTIVITY : This Order shall take effect upon approval. (SGD.) RENE G. BAEZ Acting Commissioner Bureau of Internal Revenue Employee's Compensation and Withholding Exemption Certificate MEMORANDUM OF AGREEMENT: KNOW ALL MEN BY THESE PRESENTS: This AGREEMENT made and entered into by and between: The BUREAU OF INTERNAL REVENUE An agency under the Department of Finance, herein referred to as BIR and represented by the Acting Commissioner, RENE G. BAEZ and The DEPARTMENT OF EDUCATION, CULTURE AND SPORTS, herein referred to as DECS, represented by the Secretary. RICARDO GLORIA WITNESSETH: WHEREAS, in order to effectively and correctly "deduct" the withholding tax of teacher/non-teaching personnel whose salaries are being paid by the Payroll Services Division of the DECS, Employees Compensation and Withholding Exemption Certificate (BIR Form W-4) should be properly accomplished and filed with the employer (DECS). WHEREAS, due to the number and location of these teachers/non-teaching personnel, DECS find it hard to distribute and gather all BIR Forms W-4 from said teachers/non-teaching personnel at the same time check the accuracy of the entries therein. WHEREAS, it is thus imperative that measures should be taken to enforce the proper accomplishment and filing of BIR Form W-4 to effectively implement Republic Act No. 7497. WHEREAS, one of the measures to be undertaken is to involve both BIR and DECS especially the Collection Agents, and Revenue District Officer, the Division Superintendent, District Supervisor, Principals/Head Teachers and the Payroll Services Division to ensure the correct filling-up of BIR Form W-4 and the timely filing thereof. NOW, therefore, for and in consideration of the foregoing premises, the BIR and DECS have agreed to do the following duties and responsibilities: DEPARTMENT OF EDUCATION, CULTURE AND SPORTS A. PAYROLL SERVICES DIVISION/ACCOUNTING DIVISION (PSD): 1. Send the Transmittal List of W-4 (Annex A) to each Division Superintendent, duly filled-up with names of teachers/non-teaching personnel whose salaries are paid by PSD. 2. Advise the Division Superintendent to request from the Regional Office, Collection Division, BIR, having jurisdiction over the Division/District concerned copies of blank W-4 based on the no. of teachers/non-teaching personnel listed in the transmittal form. 3. Accomplish the Schedule B portion of the W-4 Form upon receipt from the Revenue District Officer (RDO). 4. Submit the duly accomplished copies of the W-4 to Revenue District Office No. 43-Pasig, and have all copies of the form stamped "RECEIVED" by said office. 5. Retain duplicate copy of W-4 duly received by RDO No. 43 for file, and transmit the triplicate copies to the Employees/Teachers thru the Division Superintendent/Principal, for their file. cdlex 6. Retain the duplicate copy of the transmittal list duly received by RDO No. 43 for file, and future reference. 7. Encode information gathered from the file copies of the W-4 received for the purpose of computing the correct withholding tax of teachers/non-teaching personnel. B. DIVISION SUPERINTENDENT 1. Receive the transmittal lists with names of teachers/non-teaching personnel from PSD. 2. Request for copies of blank W-4 form from the Regional Office, Collection Division, BIR, based on the transmittal, listings supplied by PSD. 3. Distribute said lists to the District Supervisors having jurisdiction over the teachers/employees named in the list within ten (10) working days after receipt. 4. Receive from PSD the triplicate copies of the W-4 duly stamped "RECEIVED" by RDO No. 43 for distribution to Teachers/Employees for the latter's file. C. DISTRICT SUPERVISORS: 1. Receive the transmittal list with names of teachers/non-teaching personnel under their jurisdiction and the blank W-4 forms from the Division Superintendent. Distribute the W-4 to the corresponding Principals/Head Teachers under them within two (2) working days after receipt. 2. Collect all accomplished W-4 from the Principals/Head Teachers and verify if all the teachers/non-teaching personnel under his jurisdiction have submitted said W-4 on time. 3. Review each W-4 transmitted by the principals/head teachers. 4. Complete the transmittal list based on the W-4 submitted by each teacher/non-teaching personnel and sign in the space provided for that purpose. cdlex 5. Transmit said list and W-4 to the Collection Agent of the Municipality where the office of the District Supervisor is located or to the Revenue District Officer having jurisdiction over the school district in placed where there are no Collection Agents assigned, within ten (10) working days, after receipt of W-4 from the Principals/Head Teachers. D. PRINCIPAL/HEAD TEACHER: 1. Distribute the W-4 to all teachers/non-teaching personnel under him/her within two (2) working days from receipt of said form. 2. Require the teachers/non-teaching personnel to accomplish the W-4 in triplicate upon receipt thereof following the instructions in Annex "B" attached and submit the same within the day. 3. Prepare and submit the completed transmittal list together with the duly accomplished W-4 to the District Supervisor within five (5) working days after receipt of said form from the teachers/employees. BUREAU OF INTERNAL REVENUE A. REGIONAL OFFICE: CHIEF COLLECTION DIVISION 1. Furnish the Division Superintendent within the jurisdiction of the region concerned., copies of blank W-4 form based on the no. of teachers/non-teaching personnel listed in the transmittal form. (by personal delivery). B. COLLECTION AGENT: 1. Stamp "RECEIVED" only the copies of the transmittal list. (Do not stamp copies of BIR Form No. W-4) 2. Review/verify entries and information stated in the duly accomplished W-4 and transmittal list on the correctness of the exemptions claimed by Teachers/Non-teaching personnel. 3. Indicate the corrections/revisions of the Collection Agent/RDO at the right side portion of the transmittal list with the heading "CORRECTION/S OF COLLECTION AGENT/RDO (if any)". 4. Sion the transmittal list, and transmit the same together with the accompanying W-4 to the Revenue District Office concerned within one (1) week after receipt thereof. cdll B. REVENUE DISTRICT OFFICE (RDO): 1. Send the filled-up transmittal list and the duly filled-up W-4s to the DECS ATTN: Accounting Division, Pasig, Metro Manila within five (5) working days after receipt from the Collection Agents. (Do not retain copy of these forms). In places where there are no Collection Agents assigned, follow the functions of the Collection Agents mentioned above. C. REVENUE DISTRICT OFFICE NO. 43 PASIG: 1. Stamp "RECEIVED" all copies of the W-4s of employees/teachers submitted by PSD. 2. Give back the duplicate and triplicate copies of the W-4 to PSD after they are stamped "RECEIVED" to be distributed as follows: Duplicate PSD Triplicate Teachers/Employees 3. Transmit original copies of the duly received W-4 and the original copy of the transmittal list, to the Information Systems Operations Service, BIR. D. INFORMATION SYSTEMS OPERATIONS SERVICE: 1. Receive original copies of the W-4 with corresponding transmittal list from Revenue District Office No. 43. 2. Encode information gathered from the W-4 submitted for reference. (i.e. Name and Address of Employee, Name and Address of Employer and the Total Amount of Personal and Additional Exemptions Claimed). 3. Transmit back to RDO 43 Pasig the processed original copies of W-4 for RDO file. In witness hereof, the parties have hereunto signed this Memorandum of Agreement, this 12th day of December, 1994. prcd BUREAU OF INTERNAL REVENUE DEPARTMENT OF EDUCATION CULTURE AND SPORTS BY: BY: (SGD.) RENE G. BAEZ (SGD.) RICARDO T. GLORIA Acting Commissioner Secretary Signed in the presence of: ____________________ ___________________ REPUBLIC OF THE PHILIPPINES) S.S. QUEZON CITY Before me, this 12th day of December, 1994 Community Tax Place and Name Certificate No. Date Issued RENE G. BAEZ 34999 Quezon City Acting Commissioner April 20, 1994 Bureau of Internal Revenue RICARDO GLORIA 7746205 Taguig Secretary Feb. 8, 1994 Department of Education, Culture and Sports known to and to me known to be the same person who executed the foregoing instrument and acknowledged to me that the same is their free and voluntary act and deed, as well as the free and voluntary act and deed of the principals they represent. This instrument, which consist of five (5) pages, refers to as Memorandum of Agreement, and signed by the parties and two witnesses on each and every page thereof. IN TESTIMONY WHEREOF, I have set my hand affixed my notarial seal at the place and on the date first above written. llcd NOTARY PUBLIC Until December 31, 1994 Issued on _____ At _________ Doc. No. 200 Page No. 21 Book No. XVII Series of 1994 Transmittal List of Teachers Who Filed BIR Form W-4 ANNEX B Instructions in filling-up of Employees' Compensation and Exemption Certificate (BIR Form No. W-4) 1. Accomplish Schedule A of BIR Form W-4 in quadruplicate (Do not fill up schedule B of said form). 2. Basic Personal Exemptions: (a) For single individual or married individual judicially decreed as legally separated with no qualified dependents P9,000.00. (b) For each legally married employee P18,000.00 A married individual, whose spouse is unemployed or is a non-resident citizen deriving income from foreign sources the employed spouse or the spouse employed within the Philippines shall be entitled to a personal exemption of P18,000.00 only. (c) For Head of Family P12,000.00 Additional Exemptions Taxpayers with dependents A married individual or a head of family shall be allowed an additional exemption of Five thousand pesos (P5,000.00) for each dependent child, provided that the total number of dependents for which additional exemptions may be claimed shall not exceed four (4) dependents. 3. Additional Exemptions Taxpayers with dependents A married individual or a head of family shall be allowed an additional exemption of Five thousand pesos (P5,000.00) for each dependent child, provided that the total number of dependents for which additional exemptions may be claimed shall not exceed four (4) dependents. 4. A dependent means a legitimate, recognized natural or legally adopted child chiefly dependent upon and living with the taxpayer if such dependent is not more than twenty-one (21) years of age, is incapable of self-support because of mental or physical defects. 5. The husband shall be the proper claimant of the additional exemption for qualified dependent children unless he explicitly waives his right in favor of his wife in the withholding tax exemption certificate. Provided, however, that where the spouse of the employee is unemployed, is a non-resident citizen deriving income from foreign sources, the employed spouse shall be entitled to claim the additional exemption for children. 6. In case husband waives his right to claim the exemption of the children in favor of his wife, he shall accomplish a waiver form (see attached form) in accordance with the following proceedings: (a) Fill up three (3) copies of the prescribed waiver form. (b) Submit to his employer within five (5) days from employment together with the BIR Form W-4 for acknowledgment in the space provided for that purpose. b.1. Employer of husband shall: b.1.1 After filling up the acknowledgment portion of the waiver form, retain the duplicate copy of the form and furnish the employee the original and triplicate copies for submission to the employer of the wife and for file of the employee, respectively. 7. Change of Status and/or Additional Exemptions In case of increase or decrease of personal and additional exemptions, an amended Certificate (BIR Form W-4) showing such changes in exemptions must be submitted within ten (10) days after such change to the Principal/Head Teacher which will be indorsed to the Payroll Services Division of the Department of Education, Culture and Sports. Such changes must be supported for documentary evidence. 8. New employees shall accomplish and file the Certificate (BIR Form W-4) within five (5) days from the date of commencement of employment. Said form shall be submitted to the Principal/Head Teacher and indorse the same to the Division Office. 9. Multiple Employment Successively if the employee transferred to another employer during the taxable year, said employee shall furnish his new Employer with a Certificate of Compensation and Exemption (W-4) indicating therein his previous employment during the taxable year (name of employer/s, address/es, TIN/s, and the date/s of his separation) and attach to the said certificate (W-4), the Certificate of Income Tax Withheld on Compensation (W-2) for the calendar year issued by previous employer/s. Employee's Compensation and Withholding Exemption Certificate