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BusMath Q2 W3.3

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21 views28 pages

BusMath Q2 W3.3

Uploaded by

davidjennilyn929
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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SHS ABM

Business Mathematics:
Salaries and Wages
Quarter 2 / Week 3

Subject Teacher: Engr. Florentino R. Diaz III


COMPETENCIES
A. Content Standards
The learners demonstrate an understanding of…
1. key concepts in buying and selling.

B. Performance Standards
The learners are able to…
1. key concepts in buying and selling a business: buying products and
selling products.

C. Learning Competencies/Objectives
1. Define each of the benefits given to wage earners (ABM_BM11SW-IIe5)
2. Distinguish taxable from nontaxable benefits (ABM_BM11SW-IIe6)
3. Enumerate the standard deductions with the corresponding computation (ABM_BM11SW-IIe7)
Topic Outline

I. Employee Benefits

II. Payroll Deductions


Employee Benefits
For the Philippines, the following benefits are given to employees.

Vacation pay: Thirteen (13) vacation days, with additional one vacation day every year
starting on second year of service and convertible to cash at the end
of each year. Maximum total vacation leave is 18 days.

Sick Leave: Twelve (12) days per year for the first two years of service. With additional
one sick leave every year starting on second year of service.
Maximum total sick leave is 15 days. All unused leave days are
convertible to cash in December of each year.

Holiday Pay: Employees will still be paid during holidays (New Year’s day, Rizal day,
etc.) The usual amount they receive per day during working days will
be the same as the amount they will receive per day during holidays.
Employee Benefits
NOTE!

In lieu of vacation pay, Article 95 of the Labor Code


provides for service incentive leave for every employee who has
rendered at least one year of service of 5 days with pay.
Employee Benefits

Some benefits are taxable, just like


a. Wages
b. Salaries
c. Commissions
d. Royalties, and the like
Employee Benefits
However, some benefits are non-taxable. BIR Revenue regulations
(RR) No. 5- 2011 dated March 16, 2011 published in Manila Bulletin
March 18, 2011 cites the non-taxable benefits as follows:

1. Monetized unused vacation leave credits of private employees


not exceeding 10 days;

2. Monetized value of vacation and sick leave credits paid to


government employees;

3. Medical cash allowance to dependents of employees, not


exceeding ₱750.00 per employee per semester of ₱125.00 per
month;
Employee Benefits

4. Rice subsidy of ₱1,500.00 or one (1) week sack of 50 kg of rice


per month amounting to not more than ₱1,500.00;

5. Uniform and clothing allowance not exceeding ₱4,000.00 per


annum;

6. Actual medical expenses not exceeding ₱10,000.00 per annum;

7. Laundry allowance not exceeding ₱300.00 per month;


Employee Benefits
8. Employees achievement awards, e.g., for length of service or
safety achievement, which must be in the form of a tangible
personal property other than cash or gift certificate, with an
annual monetary value not exceeding 10,000, received by the
employee under an established written plan which does not
discriminate in favor of highly paid employees.

9. Gifts given during Christmas and major anniversary celebrations


not exceeding 5,000.00 per employee per annum;

10. Daily meal allowance for overtime work and night shift not
exceeding 25% of the basic minimum wage on a per region
basis.
Payroll Deductions
The standard deductions in the salary of an employee are as
follows:

1. Employee’s SSS contribution for private employees

2. Employee’s GSIS contribution for government employees

3. Pag-Ibig Fund Contributions for all employees

4. PhilHealth contribution for all employees

5. Withholding Taxes for all employees


SSS CONTRIBUTION
Social Security System or SSS is an insurance program
mandated by the Philippine government to cover all income
earners or workers in the private sector. All private employees
are covered by this insurance program. Aside from the private
employees, self- employed and voluntary members can also
become members of SSS.

The rate of contribution is based on the compensation of


members. The total amount of contribution of a member to SSS
is 12% of the monthly salary credit (MSC) not exceeding
₱20,000.00. However, the member will only pay the 4% and the
employer will pay the remaining 8%.
SSS CONTRIBUTION SCHEDULE FOR EMPLOYED
(effective April 2019)
Sample Problem

1) Let us say that your basic monthly salary is ₱8,100. This


monthly salary can be found in the range “7,750 –
8,249.99”. Under this range, you can see that the monthly
salary credit is ₱8,000.

2) What if your basic monthly salary is ₱40,000? What will


be your monthly salary credit? This monthly salary can
be found in the range “19,750 and above”. Under this
range, you can see that the monthly salary credit is
₱20,000.
ADDITIONAL INFORMATION:

The examples mentioned can be applied only for


workers with employers. But the processes in computing the
SS contribution is still the same if you will compute
contributions for voluntary member, self- employed, and non-
working spouse. Since these three categories have no
employers, they will all shoulder the 12% rate of contribution
and pay the total amount to SSS.
GSIS CONTRIBUTION
Government Service Insurance System or GSIS is a social insurance
institution that provides a defined benefit scheme under the law. This system does
not include employees who do not have monthly regular hours of work and are not
receiving fixed monthly compensation. This covers the employees in the public
sector. The rate of contribution is based on the compensation of members.

There are two types of insurance coverage.

1. Regular- refers to compulsory premium payments on life insurance and


retirement benefits.

2. Employees Compensation Fund- refers to premium payments paid by your


government agency so you get full coverage in case of a work- related accident.
GSIS CONTRIBUTION
Sample Problem

1)Let us say that your basic monthly salary


is ₱22,316. How much will be deducted
from your gross salary?
PAG- IBIG FUND CONTRIBUTION

The Philippine Home Development Mutual


Fund (HDMF), more popularly known as the Pag-
IBIG fund, was established to provide a national
savings program and affordable shelter financing
for Filipino workers. Among other things, the fund
offers its members short-term loans and access to
housing programs.
How to compute Pag-IBIG Contributions?

The maximum monthly compensation


allowed to compute each employee’s Pag-Ibig
contribution is currently set at ₱5,000. This means
that the maximum contribution a member can pay
per month is currently ₱100 and the employer’s
share applied to that maximum contribution is also
₱100 (Home Development Mutual Fund).
PHILHEALTH CONTRIBUTION

The National Health Insurance Program (NHIP) under


R.A. No. 7875 was engaged with the same purpose of
providing heath insurance coverage and ensuring affordable,
acceptable, available and accessible health care services for
all citizens of the Philippines, in accordance with the policies
and specific provisions of the Act. This social health insurance
program serves as the means for the healthy to help pay for
the care of the sick and for those who can afford medical care
to subsidize those who cannot (Section 5, Article III of R.A.
No. 7875, as amended.
Premium Contribution Table for Direct Contributors
Sample Problem

Assume that your basic monthly salary is


₱20,500. How much will be deducted from
your gross salary?
REVISED WITHHOLDING TAX TABLE
REVISED WITHHOLDING TAX TABLE
Sample Problem

Assume that your basic monthly


salary is ₱24,495. You have
salary deductions in GSIS, Pag-
IBIG, and PhilHealth. How much
will be your tax withheld?
PAYROLL PAYMENT SLIP
PAYROLL PAYMENT SLIP
PAYROLL PAYMENT SLIP

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