PROBLEM 1

Basic Pay (P458.02 x 22 days) 10,076.34

Overtime (P57.25 x 18 hours x 125%) 1,288.17
Gross Pay 11,364.50
Less: Deductions
SSS 363.30
HDMF 100.00
Philhealth 125.00
Withholding Tax 863.57 1,451.87
NET PAY 9,912.63

Supporting Computations
Daily Rate (P10,000 x 12 / 262 days) 458.02
Hourly Rate (P458.02 / 8 hours) 57.25
Withholding Tax Computation
Gross Pay 11,364.50
Non Taxable Income
SSS 363.30
HDMF 100.00
Philhealth 125.00 588.30
Taxable Income 10,776.20
Using Monthly Tax Table
For P10,000 tax is 708.33
Excess [(P10,776.20 - P10,000) x 20%] 155.24
863.57
PROBLEM 2

1. In the absence of withholding tax table, taxes due is computed using the annualized
compensation of the employees.

A. Casandra Belista
Monthly Rate 11,234.00
Multiply by number of months in a year 12.00
Annual Gross Pay 134,808.00
Less: Personal Exemption 50,000.00
Net Taxable Compensation 84,808.00
Estimated Annual Income Tax per Income Tax Rate

Tax on P70,000 8,500.00

Excess (P84,808- 70,000) x 20% 2,961.60
Estimated Annual Income Tax 11,461.60
Divided by by number of months in a year 12.00
Approximate Monthly Withholding Tax 955.13

B. Noemi Lascona
Monthly Rate 19,678.00
Multiply by number of months in a year 12.00
Annual Gross Pay 236,136.00
Less: Personal Exemption 75,000.00
Net Taxable Compensation 161,136.00
Estimated Annual Income Tax per Income Tax Rate

Tax on P140,000 22,500.00

Excess (P161,136- 140,000) x 25% 5,284.00
Estimated Annual Income Tax 27,784.00
Divided by by number of months in a year 12.00
Approximate Monthly Withholding Tax 2,315.33

C. Ellaisa Madrid
Monthly Rate 14,345.00
Multiply by number of months in a year 12.00
Annual Gross Pay 172,140.00
Less: Personal Exemption 125,000.00
Net Taxable Compensation 47,140.00
Estimated Annual Income Tax per Income Tax Rate

Tax on P30,000 2,500.00

Excess (P47,140 - 30,000) x 20% 3,428.00
Estimated Annual Income Tax 5,928.00
Divided by by number of months in a year 12.00
Approximate Monthly Withholding Tax 494.00

B. Using Monthly tax table

A. Casandra Belista
Monthly Rate 10,000.00
Overtime 1,234.00
11,234.00
 Less: Non Taxable Income
SSS 363.30
PHIC 125.00
HDMF 100.00 588.30
Taxable Compensation Income 10,645.70
Using Monthly Tax Table
Tax on P10,000 708.33
Excess at 20% 129.14
Taxes Due 837.47

B. Noemi Lascona
Monthly Rate 14,000.00
Overtime 5,678.00
19,678.00
Less: Non Taxable Income
SSS 508.70
PHIC 175.00
HDMF 100.00 783.70
Taxable Compensation Income 18,894.30
Using Monthly Tax Table
Tax on P17,917 1,875.00
Excess at 25% 244.33
Taxes Due 2,119.33

C. Ellaisa Madrid
Monthly Rate 12,000.00
Overtime 2,345.00
14,345.00
Less: Non Taxable Income
SSS 436.00
PHIC 150.00
HDMF 100.00 686.00
Taxable Compensation Income 13,659.00
Using Monthly Tax Table
Tax on P12,917 208.33
Excess at 15% 111.30
Taxes Due 319.63

Comparative Figures
Req 1 Req 2 Variance
A. Casandra Belista 955.13 837.47 (117.66)
B. Noemi Lascona 2,315.33 2,119.33 (196.01)
C. Ellaisa Madrid 494.00 319.63 (174.37)
PROBLEM 3

SUMMARY OF CONTRIBUTIONS
FOR THE MONTH OF JANUARY 2014

SOCIAL SECURTIY SYSTEM

EMPLOYEE'S EMPLOYER'S
NAME SHARE SHARE EC TOTAL

BELLISTA, CASSANDRA 363.30 736.70 10.00 1,110.00

LASCONA NOEMI 545.00 1,105.00 30.00 1,680.00
MADRID, ELLAISA 436.00 884.00 10.00 1,330.00
ENRIQUEZ, LARRY 236.20 478.80 10.00 725.00
TOTAL 1,580.50 3,204.50 60.00 4,845.00

PHILIPPINE HEALTH INSURANCE CORPORATION

EMPLOYEE'S EMPLOYER'S
NAME SHARE SHARE TOTAL

BELLISTA, CASSANDRA 125.00 125.00 250.00

LASCONA NOEMI 187.50 187.50 375.00
MADRID, ELLAISA 150.00 150.00 300.00
ENRIQUEZ, LARRY 100.00 100.00 200.00
TOTAL 562.50 562.50 1,125.00

HOME DEVELOPMENT MUTUAL FUND (PAG-IBIG)

EMPLOYEE'S EMPLOYER'S
NAME SHARE SHARE TOTAL

BELLISTA, CASSANDRA 100.00 100.00 200.00

LASCONA NOEMI 100.00 100.00 200.00
MADRID, ELLAISA 100.00 100.00 200.00
ENRIQUEZ, LARRY 100.00 100.00 200.00
TOTAL 400.00 400.00 800.00

BUREAU OF INTERNAL REVENUE

NAME TAX WITHELD

BELLISTA, CASSANDRA 726.73

LASCONA NOEMI 1,124.99
MADRID, ELLAISA 277.83
ENRIQUEZ, LARRY 39.21
TOTAL 2,168.75
 Basic SSS/HDMF
Employee Name Status Pay/Month Overtime SSS PHIC HDMF Loans
Casandra Belista Single 10,000.00 1,234.00 363.30 125.00 100.00 750.00
Noemi Lascona M1 15,000.00 5,678.00 545.00 187.50 100.00 750.00
Ellaisa Madrid M3 12,000.00 2,345.00 436.00 150.00 100.00

Unauthorized
Reg OT Restday Absence (No SSS/HDMF
Employee Name Status Monthly Rate Hours OT Pay) Tardiness Loans
Casandra Belista Single 10,000.00 10 hours 8 hours 1 day 45 mins 350.00
Noemi Lascona M1 15,000.00 5 hours 8 hours 2 days 40 mins 350.00
Ellaisa Madrid M3 12,000.00 24 hours 8 hours 4 hours 35 mins 700.00
Larry Enriquez M P350 per day 15 hours
PAYROLL REGISTER
FOR JANUARY 2014

DAYSLEAV OT-REG REST DAILY RATE

Name TC WORKE E TARDINES 125% DAY
W/O OT
D PAY S (hrs) (130% BASIC
)

1 BELLISTA, CASSANDRA S 1 45 10 8 384.62

2 LASCONA NOEMI M1 2 40 5 8 576.92
3 MADRID, ELLAISA M3 0.5 35 24 8 461.54
4 ENRIQUEZ, LARRY M 19 15 350.00

19 4 120 54.00 24.00 1,773.08

MONTHLY RATE LEAVE W/O PAY REST OT-REG
Regular pay TARDINES DAY OT 125% GROSS PAY SSS PHIC
S (130%) (hrs)

10,000.00 (384.62) (36.06) 500.00 600.96 10,680.29 363.30 125.00

15,000.00 (1,153.85) (48.08) 750.00 450.72 14,998.80 545.00 187.50
12,000.00 (230.77) (33.65) 600.00 1,730.77 14,066.35 436.00 150.00
6,650.00 - 820.31 7,470.31 236.20 100.00

43,650.00 (1,769.23) (117.79) ### ### 47,215.75 ### 562.50

-

1 Single 2 Married 1 3 Married 3

Gross pay 10,680.29 14,998.80 14,066.35
SSS, PH, HDMF 588.30 832.50 686.00
10,091.99 14,166.30 13,380.35
10,000.00 12,083.00 12,917.00
91.99 2,083.30 463.35
0.20 0.20 0.15
18.40 416.66 69.50
708.33 708.33 208.33
726.73 1,124.99 277.83
 TOTAL
W/TAX- SSS
HDMF DEDUCTIO NET PAY
WAGES Loan
N

100.00 726.73 350.00 1,665.03 9,015.26

100.00 1,124.99 350.00 2,307.49 ###
100.00 277.83 700.00 1,663.83 ###
100.00 39.21 475.41 6,994.91

### 2,168.75 ### 6,111.75 ###

-

4 Married
7,470.31
436.20
7,034.11
6,250.00
784.11
0.05
39.21
0.00
39.21
Final Pay Computation

Name: Jaime Legaspi

Last Date April 30, 2007
Length of service: 4 months

Monthly Rate: 15,000.00

Daily rate: 687.022901

13th month pay 4 mos. 5,000.00

Unpaid overtime pay ( April ) 96 hrs 10,305.34
Tax Refund (Payable) 1,586.50 c
Less:
Cash Advance (3,500.00)
Net Final Pay 13,391.84 a

Tax Computation:

Gross Income (Jan - April 30) 86,897.06

Add: Unpaid Overtime (April) 10,305.34
Less:
SSS 2,180.00
PHIC 750.00
HDMF 400.00 (3,330.00)
Taxable Income 93,872.40
Less: Personal Exemption Single (50,000.00)
Taxable Income 43,872.40 b
Less: Basis 30,000.00
Excess 13,872.40
Multiplied by 15%
Tax of excess 2,080.86
Add: Basic Tax 2,500.00
Total Tax Due 4,580.86
Less: Tax withheld 6,167.36
Tax Refund ( Payable ) 1,586.50 c
 Earnings Gross Deductions
Basic OT Pay HDMF SSS SSS Loan PHIC W/Tax Net Pay

15-Jan 7,500.00 7,500.00 50.00 272.50 93.75 770.92 6,312.83

30-Jan 7,500.00 8,750.95 16,250.95 50.00 272.50 93.75 770.92 15,063.78
15-Feb 7,500.00 7,500.00 50.00 272.50 93.75 770.92 6,312.83
28-Feb 7,500.00 9,385.85 16,885.85 50.00 272.50 525.00 93.75 770.92 15,173.68
15-Mar 7,500.00 7,500.00 50.00 272.50 262.50 93.75 770.92 6,050.33
31-Mar 7,500.00 8,760.26 16,260.26 50.00 272.50 262.50 93.75 770.92 14,810.59
15-Apr 7,500.00 7,500.00 50.00 272.50 262.50 93.75 770.92 6,050.33
30-Apr 7,500.00 7,500.00 50.00 272.50 262.50 93.75 770.92 6,050.33
60,000.00 26,897.06 86,897.06 400.00 2,180.00 1,575.00 750.00 6,167.36 75,824.70
PROBLEM 4.2

Final Pay Computation

Name: Amor De Jesus

Last Date 30-Apr-14
Length of service: 4 months

Monthly Rate: 15,000.00

Daily rate: 687.0229007634

13th month pay 4 mos. 5,000.00

Net pay Unpaid (April 30) 15,000.00
Less: Contributions (832.50)
Tax Refund (Payable) 3,663.50

Net Final Pay 22,831.00 a

Tax Computation:

Gross Income (Jan - MArch 30) 45,000.00

Add: Unpaid Salary (April) 15,000.00
Less:
SSS (including april) 2,180.00
PHIC (including april) 750.00
HDMF (including april) 400.00 (3,330.00)
Taxable Income 56,670.00
Less: Personal Exemption Single (50,000.00)
Taxable Income 6,670.00 b
Multiplied by 5%
Tax Due 333.50
Less: Tax withheld 3,997.00
Tax Refund ( Payable ) 3,663.50 c
 Earnings Gross Deductions
Basic Pay HDMF SSS SSSLoan PHIC W/Tax Net Pay

15-Jan 7,500.00 7,500.00 50 272.5 93.75 958 6,125.75

30-Jan 7,500.00 7,500.00 50 272.5 93.75 635 6,448.75
15-Feb 7,500.00 7,500.00 50 272.5 93.75 645 6,438.75
28-Feb 7,500.00 7,500.00 50 272.5 525 93.75 956 5,602.75
15-Mar 7,500.00 7,500.00 50 272.5 262.5 93.75 362 6,459.25
31-Mar 7,500.00 7,500.00 50 272.5 262.5 93.75 441 6,380.25
50 272.5 93.75
50 272.5 93.75
45,000.00 45,000.00 400.00 2,180.00 1,050.00 750.00 3,997.00 37,455.50
832.5
PROBLEM 4.3

Daily Rate # OF OT-REG NIGHT LEGAL Monthly Basic OT-REG NIGHT DIFF LEGAL
Name TC HOURS 125% DIFF HOL (April Pay 125%(hrs) (OT) 137.5% HOL
WORKED (hrs) (OT) 9)

E076 Bernardo, Tricia S 350.00 214 46 17 8 9,362.50 2,515.63 1,022.66 350.00

350.00 214 46.00 17.00 8.00 9,362.50 2,515.63 1,022.66 350.00

Journal Entry: withholding tax computation

Salaries & Wages 13,250.78 Gross pay 13,250.78

SSS Expense 709.80 Less:
Phealth Expense 112.50 SSS (345.20)
HDMF Expense 100.00 PHIC (112.50)
SSS Payable 1,055.00 HDMF (100.00)
Phealth Payable 225.00 Taxable income 12,693.08
HDMF Payable 200.00 Less: Basis 10,000.00
Withholding Tax Payable 1,246.95 excess 2,693.08
Cash in Bank 11,446.14 tax rate 20%
To record payroll - Tax on excess 538.62
add: Basic tax 708.33
Withholding Tax for the month 1,246.95
 Employee Share Employer Share

W/TAX- TOTAL PHEALTH HDMF

GROSS PAY SSS PHIC HDMF NET PAY SSS ER EC
WAGES DEDUCTION ER ER

13,250.78 345.20 112.50 100.00 1,246.95 1,804.65 11,446.14 699.80 10.00 112.50 100.00

13,250.78 345.20 112.50 100.00 1,246.95 1,804.65 11,446.14 699.80 10.00 112.50 100.00
PROBLEM 4.4

Late/Underti OT-REG NIGHT Monthly Late/Undertim OT-REG NIGHT DIFF (OT)

Name TC DIFF GROSS PAY
me (hrs) 125%(hrs) Basic Pay e (hrs) 125%(hrs) 137.5%
(OT)

E067 Cruz, Elena S 3 46 17 15,000.00 (257.63) 4,937.98 2,007.40 21,687.74

3 46.00 17.00 ### 4,937.98 2,007.40 21,687.74

Journal Entry: withholding tax computation

Salaries & Wages 21,687.74 Gross pay 21,687.74

SSS Expense 1,135.00 Less:
Phealth Expense 187.50 SSS (545.00)
HDMF Expense 100.00 PHIC (187.50)
SSS Payable 1,680.00 HDMF (100.00)
Phealth Payable 375.00 Taxable income 20,855.24
HDMF Payable 200.00 Less: Basis 15,833.00
Withholding Tax Payable 3,130.56 excess 5,022.24
Cash in Bank 17,724.68 tax rate 25%
- Tax on excess 1,255.56
add: Basic tax 1,875.00
Withholding Tax for the month 3,130.56
 Employee Share Employer Share

W/TAX- TOTAL PHEALTH

SSS PHIC HDMF NET PAY SSS ER EC HDMF ER
WAGES DEDUCTION ER

545.00 187.50 100.00 3,130.56 3,963.06 17,724.68 1,105.00 30.00 187.50 100.00

545.00 187.50 100.00 3,130.56 3,963.06 17,724.68 1,105.00 30.00 187.50 100.00
PROBLEM 4.5

13th Month Pay

Monthly Length of Stay Amount

Name Last Date Salary Rate (Mos.) 13th Month Pay

Mica Cruz 15-Jun 15,000.00 5.5 6,875.00

Angel locsin 30-Dec 10,000.00 12 10,000.00

Total 16,875.00

a.) Taxes Due For The Year b.) Tax Payable / Refund
A. B.
Non taxable SSS/PHIC & HDMF Taxable Salaries Amount of Taxes Withheld Amount to be Amount of Taxes w/held
Name 13th month Contribution & others Exemption Taxable Income Tax due Jan to Nov (Refund)/Paid in Dec as adjusted

Mica Cruz 6,875.00 4,578.75 77,921.25 75,000.00 2,921.25 146.06 3,080.00 (2,933.94) 146.06
Angel locsin 10,000.00 7,059.60 112,940.40 50,000.00 62,940.40 7,441.06 6,440.00 1,001.06 7,441.06

Total 16,875.00 11,638.35 190,861.65 125,000.00 65,861.65 7,587.12 9,520.00 -1,932.88 7,587.12

Net Pay for Dec. 31

Regular Wtax/ (refund) SSS/PHIC/HDMF SSS Loan Net pay

Mica Cruz 7,500.00 (2,933.94) 416.25 10,017.69
Angel locsin 5,000.00 1,001.06 294.15 328.13 3,376.66

Total 13,394.35
 Pay Employee Regular W/Tax SSS,PHIC Net Pay sss ph
Out Name HDMF Cont 545 187.5
15-Jan Mica Cruz 7,500.00 308.00 416.25 6,775.75 363.3 125
30-Jan Mica Cruz 7,500.00 308.00 416.25 6,775.75
15-Feb Mica Cruz 7,500.00 308.00 416.25 6,775.75
28-Feb Mica Cruz 7,500.00 308.00 416.25 6,775.75
15-Mar Mica Cruz 7,500.00 308.00 416.25 6,775.75
30-Mar Mica Cruz 7,500.00 308.00 416.25 6,775.75
15-Apr Mica Cruz 7,500.00 308.00 416.25 6,775.75
30-Apr Mica Cruz 7,500.00 308.00 416.25 6,775.75
15-May Mica Cruz 7,500.00 308.00 416.25 6,775.75
30-May Mica Cruz 7,500.00 308.00 416.25 6,775.75
15-Jun Mica Cruz 7,500.00 ??? 416.25 ???
82,500.00 3,080.00 4,578.75 67,757.50

Pay Employee Regular SSS W/Tax SSS,PHIC Net Pay

Out Name Loan HDMF Cont
15-Jan Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
30-Jan Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
15-Feb Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
28-Feb Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
15-Mar Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
30-Mar Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
15-Apr Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
30-Apr Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
15-May Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
30-May Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
15-Jun Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
30-Jun Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
15-Jul Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
30-Jul Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
15-Aug Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
30-Aug Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
15-Sep Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
30-Sep Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
15-Oct Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
30-Oct Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
15-Nov Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
30-Nov Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
15-Dec Angel Locsin 5,000.00 328.13 280.00 294.15 4,097.72
30-Dec Angel Locsin 5,000.00 328.13 ???? 294.15 ???
120,000.00 7,875.12 6,440.00 7,059.60 94,247.56
hdmf
100 832.5 416.25
100 588.3 294.15