PAYROLL WORKSHOP

Kevin Troy M. Chua, CPA, CPP®

Megabest Manufacturing Company is to prepare the month-end payroll for the month of November 2020. For purposes of payroll preparation, the following information are made
available:

Employee Name ALARAS, ARLA GABRIELLE (A0012)

Position Assembler
Monthly Basic Salary Php 15,000.00 paid monthly
Equivalent Daily Rate Php 493.15
Hourly Rate Php 61.64

Employee Name HERMOSO, CHARLOTTE (P0016)

Position Painter and Packager
Monthly Basic Salary Php 16,000.00 paid monthly
Equivalent Daily Rate Php 526.03
Hourly Rate Php 65.75

Employee Name LAURITO, GIDJETTE ANNE (F0231)

Position Factory Supervisor
Monthly Basic Salary Php 30,000.00 paid monthly
Equivalent Daily Rate Php 986.30
Hourly Rate Php 123.29

Employee Name SANTIAGO, EDSEL (Q0144)

Position Quality Control Inspector
Monthly Basic Salary Php 45,000.00 paid monthly
Equivalent Daily Rate Php 1,479.45
Hourly Rate Php 184.93

Employee Name SKRIBIKIN, GABRIELLE (O0331)

Position Office Administrative Staff
Monthly Basic Salary Php 18,000.00 paid monthly
Equivalent Daily Rate Php 591.78
Hourly Rate Php 73.97
 Accumulated late and absences:
Late Absences and
ALARAS, ARLA GABRIELLE 0.45 1 day
HERMOSO, CHARLOTTE hours
0.96 paid
1 day
LAURITO, GIDJETTE ANNE 1.22 1 day
SANTIAGO, EDSEL - 1 day
SKRIBIKIN, GABRIELLE - 1 day

 Work done on special non-working day:

Date Duration
ALARAS, ARLA GABRIELLE November 2, Whole
HERMOSO, CHARLOTTE November 2, Whole
LAURITO, GIDJETTE ANNE 2020
November 2, day
Whole
SANTIAGO, EDSEL November 2, Whole
SKRIBIKIN, GABRIELLE November 2, Whole

 Overtime information
Regular hours With
night
ALARAS, ARLA GABRIELLE 2.50 -
HERMOSO, CHARLOTTE 3.50 2.00
LAURITO, GIDJETTE ANNE 4.25 2.50
SANTIAGO, EDSEL 1.00 -
SKRIBIKIN, GABRIELLE 1.00 -

 Benefits and allowances

Transportation Rice Subsidy
ALARAS, ARLA GABRIELLE 1,500 2,000
HERMOSO, CHARLOTTE 1,500 2,000
LAURITO, GIDJETTE ANNE 1,500 2,000
SANTIAGO, EDSEL 1,500 2,000
SKRIBIKIN, GABRIELLE 1,500 2,000
  Other deductions
Type Amount
ALARAS, ARLA GABRIELLE Company 150.0
HERMOSO, CHARLOTTE lanyard
Merchandis 0200.0
LAURITO, GIDJETTE ANNE SSS 736.1
SANTIAGO, EDSEL Merchandis 200.0
SKRIBIKIN, GABRIELLE HDMF 396.1

Prepare the following:

1. Completed payroll register with correct amount of gross pay, statutory deductions, withholding tax, and net pay.
2. Payroll journal entries to recognize payroll for the month and assigning them to production. Assume that assembly, painting, and packaging lies within one department only.
Payroll Register
November 1-30, 2020
A- F-E-G- G+H+I+K F-M
A B C D E B+C+D+E
F G H I H-IJ K L +L M N
Ot Other
Lates/Ab her nontaxa Taxa Withhold Othe Tota
Ecod Employee Name Basic sen Overtim taxa ble GROSS SSS- PHIC- HDMF- ble ing r l NET
e ALARAS, ARLA GABRIELLE Pay
15000 ces
27.74 e
340.58 ble
1500 2000 PAY
18812.84 EE
760 EE
225 EE100 inco
15727.84 Tax
- deducti
150 deducti
1235 PAY
17577.84
P0016 HERMOSO, CHARLOTTE 16000 63.12 590.14 1500 2000 20027.01 800 240 100 16887.01 - 200 1340 18687.01
F0231 LAURITO, GIDJETTE ANNE 30000 1136.71 1289.90 1500 2000 33653.18 800 450 100 30303.18 1894.04 736.19 3980.23 29672.96
Q014 SANTIAGO, EDSEL 45000 - 675 1500 2000 49175.00 800 675 100 45600 5566.75 200 7341.75 41833.25
O033 SKRIBIKIN, GABRIELLE 18000 591.78 270 1500 2000 21178.22 800 270 100 18008.22 - 396.15 1566.15 19612.07
124000 1819.36 3165.62 7500 10000 142846.2 3960 1860 500 126526.2 7460.79 1682.34 15463.13 127383.1
6 6 3
Attributable to:
Direct Labor:
ALARAS, ARLA GABRIELLE 15000
A0012 HERMOSO, CHARLOTTE
P0016 16000
31000
Overhead:
F0231 LAURITO, GIDJETTE ANNE 30000
Q014 SANTIAGO, EDSEL 45000
4 75000
Administrative:
O033 SKRIBIKIN, GABRIELLE 18000
1
Lates and absences
November 1-30, 2020

Late Absent Absent Total

Ecod Employee Name Daily Hourly Late deduction Absent hours deduction deduction
e
A0012 ALARAS, ARLA GABRIELLE rate
493.15 rate
61.64 hours
0.45 27.74 days1 - - 27.74
P0016 HERMOSO, CHARLOTTE 526.03 65.67 0.96 63.12 1 - - 63.12
F0231 LAURITO, GIDJETTE ANNE 986.30 123.29 1.22 150.41 1 8 986.30 1136.71
Q0144 SANTIAGO, EDSEL 1479.45 184.93 - 1 - - -
O0331 SKRIBIKIN, GABRIELLE 591.78 73.97 - 1 8 591.78 591.78
4076.71 509.59 2.63 241.27 5 16 1578.08 1819.36

Attributable to:
Direct Labor:
A0012 ALARAS, ARLA GABRIELLE 27.74 -
P0016 HERMOSO, CHARLOTTE 63.12 -
90.86 -
Overhead:
F0231 LAURITO, GIDJETTE ANNE 150.41 986.30
Q0144 SANTIAGO, EDSEL - -
150.41 986.30
Administrative:
O0331 SKRIBIKIN, GABRIELLE - 591.78
Overtime and other premium
November 1-30, 2020

Night
Regul Regula shift
Overti ar Overti Speical Special Night r Night different Tot
Ecod Employee Name Daily Hourly me Overti me day day shift shift ial al
e
A0012 ALARAS, ARLA GABRIELLE rate
493.15 rate
61.64 hou
2.50 me
154.11 premi
38.53 hours
8 premiu
147.95 hour
- pay
- premiu
- overti
340.58
P0016 HERMOSO, CHARLOTTE 526.03 65.67 3.50 230.14 57.53 8 157.81 2 131.51 13.15 590.14
F0231 LAURITO, GIDJETTE ANNE 986.30 123.29 4.25 523.97 130.99 8 295.89 2.5 308.22 30.82 1289.90
Q0144 SANTIAGO, EDSEL 1479.45 184.93 1.00 184.93 46.23 8 443.84 - - - 675
O0331 SKRIBIKIN, GABRIELLE 591.78 73.97 1.00 73.97 18.49 8 177.53 - - - 279
4076.71 509.59 12.25 1167.12 291.78 40 1223.01 4.5 439.75 3165.62

Attributable to:
Direct Labor:
ALARAS, ARLA GABRIELLE 154.11 38.53 147.95 - -
P0016 HERMOSO, CHARLOTTE 230.14 57.53 157.81 131.51 13.15
384.25 + + 131.51 +
Overhead:
F0231 LAURITO, GIDJETTE ANNE 523.97 46.23 295.89 308.22 30.82
Q0144 SANTIAGO, EDSEL 184.93 18.49 443.84 - -
708.90 273.39 1045.48 308.22 43.97
Administrative:
O0331 SKRIBIKIN, GABRIELLE 73.97 18.49 177.53 - -

Note: in premium payments, whether direct or indirect labor, it will fall under overhead except administrative. It will only fall under direct labor if the work is rush.
Other taxable income
November 1-30, 2020

Ecod Employee Name TRAN Total TI

e
A0012 ALARAS, ARLA GABRIELLE 1500 1500
P0016 HERMOSO, CHARLOTTE 1500 1500
F0231 LAURITO, GIDJETTE ANNE 1500 1500
Q0144 SANTIAGO, EDSEL 1500 1500
O0331 SKRIBIKIN, GABRIELLE 1500 1500
7500 7500
Attributable to:
Overhead:
A0012 ALARAS, ARLA GABRIELLE 1500
P0016 HERMOSO, CHARLOTTE 1500
F0231 LAURITO, GIDJETTE ANNE 1500
Q0144 SANTIAGO, EDSEL 1500
6000
Administrative:
O0331 SKRIBIKIN, GABRIELLE 1500
Other nontaxable income
November 1-30, 2020

Ecod Employee Name RICE Total

e
A0012 ALARAS, ARLA GABRIELLE 2000 NTI
2000
P0016 HERMOSO, CHARLOTTE 2000 2000
F0231 LAURITO, GIDJETTE ANNE 2000 2000
Q0144 SANTIAGO, EDSEL 2000 2000
O0331 SKRIBIKIN, GABRIELLE 2000 2000
10000 10000

Attributable to:
Overhead:
A0012 ALARAS, ARLA GABRIELLE 2000
P0016 HERMOSO, CHARLOTTE 2000
F0231 LAURITO, GIDJETTE ANNE 2000
Q0144 SANTIAGO, EDSEL 2000
8000
Administrative:
O0331 SKRIBIKIN, GABRIELLE 2000
Other deductions
November 1-30, 2020

Ecod Employee Name SSSL PIML MERCH LY Total

e
A0012 ALARAS, ARLA GABRIELLE - - - 150 150
P0016 HERMOSO, CHARLOTTE - - 200 - 200
F0231 LAURITO, GIDJETTE ANNE 736.19 - - - 736.19
Q0144 SANTIAGO, EDSEL - - 200 - 200
O0331 SKRIBIKIN, GABRIELLE - 396.15 - - 396.15
736.19 396.15 400 150 1682.34
Statutory deductions
November 1-30, 2020

Ecod Employee Name Basic pay Gross SSS-EE SSS-ER PHIC- PHIC- HDMF- HDMF- Total Total
e
A0012 ALARAS, ARLA GABRIELLE 15000 pay
18812.84 760 1550 EE
225 ER
225 EE100 ER100 EE
1085 ER
1875
P0016 HERMOSO, CHARLOTTE 16000 20027.01 800 1630 240 240 100 100 1140 1970
F0231 LAURITO, GIDJETTE ANNE 30000 33653.18 800 1630 450 450 100 100 1350 2180
Q0144 SANTIAGO, EDSEL 45000 49175 800 1630 675 675 100 100 1575 2405
O0331 SKRIBIKIN, GABRIELLE 18000 21178.22 800 1630 270 270 100 100 1170 2000
124000 142.846.2 3960 8070 1860 1860 500 500 6320 10430
 121668.04
Factory salaries
Salaries andexpense
and wages wages 21178.22
SSS contributions payable – EE 3960.00
PHIC contributions payable – EE 1860.00
HDMF contributions payable – EE 500.00
Withholding tax payable 7460.70
SSS loan payable - EE remittance 736.19
HDMF loan payable - EE remittance 396.15
Lanyards and company merchandise 550.00
Salaries and wages payable – factory 107771.06
Salaries and wages payable - 19612.07
To recognize factory and administrative
salaries.
1630.00
SSS
PHICemployer
employershare
shareexpense
expense 270.00
HDMF employer share expense 100.00
Manufacturing overhead 8430.00
SSS contributions payable – ER 8070.00
PHIC contributions payable – ER 1860.00
HDMF contributions payable – ER 500.00
To record employer share of contributions.

31424.89
Work-in-processoverhead
Manufacturing inventory 90243.15
Factory salaries and wages 121668.04
To charge factory payroll to production.