Sprout Payroll: BIR Annualization Run Order

Overview:

Annualization must be processed first prior to generating the Alphalist and BIR 2316.

Annualization corresponds to the final payroll run of the year:

• Semi-Monthly: December Period 2 Payroll Run
• Monthly: December Period 1 Payroll Run
• Weekly: December Period 4 Payroll Run

Step-by-Step Process

Step 1: Prerequisites (Before Annualization)

• New Hires: Upload the BIR 2316 provided by their previous employer for employees hired within the current calendar year. Synced Accounts: How to Add Previous Employment Details in the Alphalist?
• Mid-Year Payroll Setup: Upload Year-To-Date (YTD) figures if payroll processing began mid-year. How to Upload YTD

Step 2: Processing Annualization

1. Ensure the payroll run being processed is the final run for the year.
2. Initiate the payroll run.
3. In the Payroll Options section, verify that the Tax Table field defaults to Annual.

Step 3: Post-Annualization & Reporting

1. Generate Annualization Report: Check Column L of the report. The value must be zero. If a value is present, follow the required workaround for tax payable/refund discrepancies. Why is there an amount under Tax Payable or Tax Refund Column of Annualization Report?
2. Generate and Validate Alphalist: Run the Alphalist report and validate the data using the official BIR Validation Tool. Update: Alphalist 7.4 in Sprout Payroll / How to Download Alphalist Data Entry and Validation Module (Version 7.4)
3. Generate BIR 2316: Once validation is complete, proceed with generating the BIR Form 2316. How to Post BIR 2316 in Sprout Payroll? / How To Generate BIR Form 2316 from Sprout Payroll

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