20 Nov
As the year closes, HR and accounting teams across the Philippines face one of their biggest annual tasks, preparing and submitting BIR Form 1604-C, or the Annual Information Return of Income Taxes Withheld on Compensation.
This form serves as a summary of all taxes withheld from employees’ salaries throughout the year. It’s submitted to the Bureau of Internal Revenue (BIR) every January 31, along with the Alphalist of Employees, which lists each worker’s total income and corresponding tax withheld.
On paper, it sounds straightforward. In reality, it’s one of the most stressful reports HR teams handle.
Why 1604-C Is a Common Headache for HR
Preparing the 1604-C means reconciling twelve months’ worth of payroll data, tax deductions, adjustments, bonuses, separated employees, even late hires.
Here’s what many HR personnel encounter behind the scenes:
- 📂 Scattered data – Payroll details saved across different Excel sheets or email attachments.
- ⏱️ Time crunch – January arrives fast, leaving only a few weeks to double-check every record.
- ⚠️ Error risk – One mismatched TIN, a missing employee record, or incorrect tax computation can cause delays or rejections by the BIR.
- 💬 Manual coordination – HR often chases department heads for updates on resigned staff or unpaid benefits.
It’s a process that demands accuracy and consistency, but manual workflows make that nearly impossible when your team’s already juggling year-end reports, evaluations, and clearances.
How Automation Changes the Game
This is where technology can completely shift the load. Instead of building the 1604-C from scratch each year, an automated HRIS and Payroll System consolidates everything in real time, payroll runs, deductions, contributions, and employee records.
Decode Technologies’ HRIS and Payroll System was built with exactly this challenge in mind.
With Decode Technologies, HR teams can:
- Automatically generate BIR Form 1604-C and other government reports with accurate, ready-to-file data.
- Sync employee details and tax information in one secure platform, no more multiple spreadsheets.
- Update payroll and contributions automatically in line with the latest BIR, SSS, and PhilHealth regulations.
- Access past payroll records anytime, making year-end reconciliation faster and more reliable.
A Realistic Scenario
Picture this:
It’s mid-January. Your HR officer is balancing clearance signoffs, final pays, and now, the dreaded 1604-C preparation.
She opens five versions of payroll files, cross-checks tax totals, and spots a mismatch for a resigned employee from March. She spends hours tracing the issue back, only to find one missing record in an old Excel file.
Now imagine the same process in Decode Technologies’ system:
One click, and all payroll, tax, and employee data are already synchronized. The report is pre-formatted, validated, and export-ready for BIR submission. No manual compilation, no data gaps, no panic.
Getting It Right the First Time
BIR deadlines won’t wait, but your team doesn’t need to scramble every January. By using an integrated payroll solution, you can ensure every peso withheld, every employee record, and every computation aligns perfectly when it’s time to file.
Switch to Decode Technologies’ HRIS and Payroll System today, because when compliance is automated, HR teams can finally focus on what matters most: people, not paperwork.