RMO No. 20-2015: Prescribes the policies, guidelines and procedures on the registration of employees

Summary

RMO No. 20-2015 clarifies the procedures on registering employees and sets the policies and guidelines for issuing employees’ Taxpayer Identification Numbers (TIN) through the eRegistration (eReg) System.

Key points

1. Where employees register. Employees register at the RDO where the employer is registered, or at the local RDO of the business address where the Large Taxpayer employer is physically located. A transfer of registration due to a change of employer starts with the RDO that receives BIR Form No. 1905 signed and filled out by the new employer, and a faxed signed copy is accepted if the employee or employer is far from the RDO.
2. Cases that cannot use eReg. Taxpayers with incomplete data on the basic taxpayer information form (for example no middle name), or with matching records in the BIR database under the listed validation rules, cannot register in eReg. They appear personally in the RDO, or the Large Taxpayer employer submits a written request for TIN issuance to the LTAD, ELTRD, LTD-Makati or LTD-Cebu.
3. Large Taxpayer employers. Only the Large Taxpayer employer transacts with the LTAD, ELTRD, LTD-Makati or LTD-Cebu on registration of its employees and update of exemption. It gets TINs for new employees through eReg, or through written request with a transmittal list and BIR Form No. 1902, and requests TIN cards in batches of twenty (20).
4. Other employers. Employers of TAMP corporations and eFPS-registered users must use eReg to secure the TIN of new employees. All other non-large employers may use eReg or the RDO with jurisdiction over the business address. An employee with concurrent multiple employment gets the TIN at the RDO of the principal or main employer.
5. Employees with existing TIN. New employees with an existing TIN apply for update of registration information by submitting BIR Form No. 2305 to the employer. The employer updates the exemption using the BIR Form No. 2305 Data Entry Module or the Taxpayer Registration Information Update System (TRIU).
6. Penalties. Employers required to use eReg who send new employees to the RDOs or LT offices with photocopied alleged eReg messages pay P1,000.00 per employee under Section 275 of the Tax Code, as amended. Users of eReg and the Update of Exemption Data Entry Module who supply erroneous or invalid information pay P1,000.00 for every instance, not exceeding P25,000.00.

Who is affected

• Employees applying for TIN
• Large Taxpayer employers
• TAMP corporations and eFPS-registered employers
• Other employers

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.