Tax
Annualization
Working out your tax for the whole year. Payroll does it only in December, or with your last pay if you leave, to square the year.
Most useful for: Career shifter
- In real life
- Your ₱27,550 taxable a month is ₱330,600 a year, so the year's tax is ₱12,090. Payroll compares that with what it withheld by the table and settles the difference.
- Why it matters to you
- Each payday uses BIR's withholding table. Annualizing is the year-end true-up, not a way to withhold each payday.
An explanation to help you read your pay, not a ruling on your case. Your employer, the agency or DOLE has the final word.