Deductions

Hi,

Just wanted to ask are sss, philhealth,pagibig both (premiums and loans) taxable? how about allowances, meal and transpo allowance?

Is this the correct computation for Net pay:

Gross - (sss + pagibig + philhealth) = taxable income
Taxable income - witholding tax = total income
Total income + allowance = Net pay

Pls advise. Thanks!

generally, that is correct, as long as allowances and other benefits including 13th month pay do not exceed P30,000 in the taxable year.

Thanks Atty!

Another question: What's the difference between basic pay/monthly rate and daily rate?

What are the benefits of a basic pay salary? Do we have a multiplier (like the daily rate 262days)?

What if I'll be absent? Should they compute it as:
Basic pay / 2(payroll period) =semi monthly
Semi monthly / number of days = daily rate

...And daily rate will be deducted on the number of days that i was absent? Let's say I do not have paid leaves yet.

Please advise. Thanks!

daily paid employees have no pay when they don't work. monthly depends on how the daily rate is computed. there has to be a fixed factor by the company. it will be that daily rate which will be the basis of the deduction

Thanks for the responses Atty.

My daily rate changes every payday. It actually depends on how many days I come in to work, but I am on a basic salary status.

Let's say my semi-monthly is 10,000:
If the pay period has covered 10 days of work then my daily rate is 1,000 and if it has covered 11 days it will just be 909.09

Is this computation correct?

Thanks for being so patient.

no, that's an indicator you are a monthly paid worker. to compute your daily rate it should be annual income divided by the factor (no. of days in the year paid) used by the company.

Sorry Atty. but I didn't get your response.

I am currently on a monthly paid status. How are they going to deduct my absences?

Let's say my salary is 20k and 2k allowance and I was absent for 2 days in one cut off, our salary is being paid semi monthly.

What will be the total amount of my absences?

I was a on a daily rate status from my previous employer and the computation there was annual income/262days = daily rate

Now, I am confused with monthly rate. I have a different daily value depending on a the number of days covered by the pay period. Like what I said from my previous queries. There were times that may deduction for 1 day absence is 1000 and sometimes only 909.09 for a day. And its confusing me, I wanted to get an advice from you before talking to our accounting people.

They're masusungit and they always answer with sarcasm, Once I found out that their computation is wrong I can move on to the next level.

Thanks so much! I apologize if I have a lot of questions.

if the daily rate is changing,then obviously they are wrong.

a company has to establish how many of the 365 days in the year they are paying. that is the 'factor'.

read this thread: http://www.pinoylawyer.org/t3385-how-is-monthly-basic-pay-computed

Thank you very much Atty!!

More power!

neraksyrhk wrote:Hi,

Just wanted to ask are sss, philhealth,pagibig both (premiums and loans) taxable? how about allowances, meal and transpo allowance?

Is this the correct computation for Net pay:

Gross - (sss + pagibig + philhealth) = taxable income
Taxable income - witholding tax = total income
Total income + allowance = Net pay

Pls advise. Thanks!

Sorry I was lost with this...

"Gross - (sss + pagibig + philhealth) = taxable income"

does this include loan payments such as sss loan and pag-ibig loan? So this should be, Gross - (government contributions + government loan payments) = Taxable Income?

no, what you paid as loan payments is deducted after tax is deducted