Withholding Tax

CoinTrack Pro computes creditable withholding tax on compensation income based on the BIR tax table and each employee's tax status.

Tax Status Configuration

Each employee's tax status determines which tax bracket applies:

• S / ME 0: Single or married with no qualified dependents
• ME 1 – ME 4: Married with 1 to 4 qualified dependents
• S1 – S4: Single with qualified dependents
• Z: Zero withholding tax (exempted employees)

Tax Computation

CoinTrack Pro uses the TRAIN Law tax table (effective 2023) for monthly or semi-monthly withholding. Taxable income = gross compensation income minus non-taxable deductions (SSS, PhilHealth, Pag-IBIG).

Annualization

At year-end, the system supports tax annualization to reconcile the total tax withheld vs. the actual annual tax due. This is used to determine if an employee has an excess or deficiency in withholding for the year.