2nd Quarter BusMath Notes PDF

Standard Deductions Income Tax is a tax on a person's income, 2nd Quarter BusMath Notes emoluments, profits arising from property, Salaries & Wa...

Standard Deductions Income Tax is a tax on a person's income, 2nd Quarter BusMath Notes emoluments, profits arising from property, Salaries & Wages practice of profession, conduct of trade or Payslip business or on the pertinent items of gross A note given to an income specified in the Tax Code of 1997 (Tax employee when they Code). have been paid, detailing the amount Social Security System (SSS) − a protection to workers in private sectors Abdon, Bianca Nicole A. of pay given (total income), and the tax − replacement income for workers in times of and insurance death, disability, sickness, maternity, and old deducted age (pension) (deductions). − September 1, 1957, under the term of President Carlos P. Garcia. This was established by the Social Security Act of 1954, also known as Republic Act No. 1161 − GSIS serves government employees. Pag-IBIG Gross Earnings − Home Developmental Mutual Fund amount earned by a person before subtracting all − Housing loans, savings, & other financial necessary deductions. services to Filipino workers. − Created 1978 Net Earnings (NE = Gross Earnings - Deductions) − Helping Filipino attain their dream home amount earned by a person after subtracting all necessary deductions. PhilHealth − every member is protected through its Deductions comprehensive benefit packages that are It is the amount held by the authority or the both preventive/ curative company as a form of payment for some − individual’s health needs rather than a necessary dues like taxes, loans, etc. person’s ability to pay and responsive to the healthcare needs of members Employee Compensation It refers to the remuneration or reward that an employee gets from employer for the services Benefits of an Employee s/he gives which is a legal & moral obligation of any business. This includes wages, salaries, Compensation (basic pay) employee benefits, and incentive pay. Employee Benefit Income Remuneration other than basic pay (sick leaves, This is the money received for work or through vacations, hospitalization benefits, & meal investments. allowance) Salary Maternity Benefit (taxable) This a fixed regular payment, typically paid on a monthly or weekly basis but usually expressed as an annual sum, has paid leave. Normal or cesarian 𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑖𝑛𝑐𝑜𝑚𝑒 × 3.5 Wage (3 and a half months) This is a payment for labor or services usually Miscarriage according to contract and on an hourly, daily, (2 months) 𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑖𝑛𝑐𝑜𝑚𝑒 × 2 or piecework basis, no work, no pay. Solo Parent 𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑖𝑛𝑐𝑜𝑚𝑒 × 4 Time Formula annual salary Monthly Salary 12 13th Month Pay (non-taxable) Bi-monthly Salary annual salary monthly basic salary × employment length (months) (every 2 months) 6 12 months Semi-monthly Salary annual salary (twice a month) 24 Retirement Pay (taxable) annual salary Weekly Salary 52 22.5 × P × T (tenure) Bi-weekly Salary annual salary 12 months (every 2 weeks) 26 P= daily income T= number of years served annual salary Daily Salary 365  Taxable and Non-Taxable Benefits 2. The excess amount is added to the employee's taxable income for the year 3. This total taxable income is then subject to De Minimis Benefits the regular income tax rate These are the benefits voluntarily given by employers and are relatively small values For example, if an employee receives a rice provided by the employers to the employee on subsidy of 2,500 per month: top of the basic compensation intended for the Non-taxable portion: 2,000 general welfare of the employees. Being of Taxable portion: 500 per month relatively small values, the same is not being Annual taxable amount: 500 × 12 months considered as a taxable compensation. Abdon, Bianca Nicole A. = 6,000 This 6,000 would be added to the employee's TAX EXEMPT DE MINIMIS BENEFITS annual taxable income and taxed at their UNDER TRAIN RA 10963 applicable income tax rate. These benefits are generally non-taxable, but only up to certain limits. If the benefit exceeds the Examples: limit, the excess becomes taxable. 1. Mr. Ilagan's employer provides his employees 1. Unused vacation leave credits (private an amount of ₱8,000 Christmas Bonus. employees): - Taxable o Non-taxable up to 10 days per year - ATA = ₱8,000 - ₱5,000 = ₱3,000 o Anything beyond 10 days is taxable 2. Charry receives a rice subsidy allowance of 2. Vacation and sick leave credits (government ₱3,200 for two months. employees): - Taxable o All convertible values are non-taxable - ATA = (₱3,200 - ₱2,000) × 2 = ₱2,400 3. Medical cash allowance for dependents: 3. Ma'am Pamela receives a clothing allowance a o Non-taxable up to 1,500 per semester month worth ₱400. or 250 per month - Taxable o Excess is taxable - ATA = (₱400 × 12) - ₱6,000 = ₱4,800 - ₱6,000 = ₱0 (Non-taxable as it's below the 4. Rice subsidy: annual limit) o Non-taxable up to 2,000 per month o Excess is taxable 4. Julie works overtime and is given a meal allowance of ₱125. 5. Uniform and clothing allowance: Note: Juana receives a daily wage of ₱450 and o Non-taxable up to 6,000 per year a meal allowance for 125 times the whole year. o Excess is taxable - Non-taxable - 25% of ₱450 = ₱112.50 6. Medical assistance: - ₱125 is within the limit, so it's non-taxable o Non-taxable up to 10,000 per year o Excess is taxable 5. Albert, a city vice mayor, did not use all of his sick and leave incentives and was monetized 7. Laundry allowance: worth ₱18,567 for the whole year. o Non-taxable up to 300 per month - Non-taxable o Excess is taxable - All convertible values of vacation and sick leave credits for government employees are 8. Employee achievement awards: non-taxable o Non-taxable up to 10,000 per year o Must be in the form of tangible personal property (not cash) Overtime and Night Shift Pay o Excess is taxable Overtime 9. Christmas and major anniversary gifts: any time worked over the standard working hours o Non-taxable up to 5,000 per employee (8) stated in a contract. per year o Excess is taxable An employee, who works more than the standard number of working hours, receives an additional 10. Meal allowance for overtime: 25% of the hourly rate during regular workdays, Abdon, Bianca Nicole A. o Non-taxable up to 25% of the basic and 30% of the hourly rate during rest days, minimum wage per region regular, and special holidays. o Excess is taxable *on regular days (1.25 x h x r) 11. Benefits from collective bargaining: o Non-taxable up to 10,000 per Example: employee per year On Tuesday, Anna works for 9 hours. How much o Excess is taxable would her overtime pay be if her hourly rate is ₱52.00? To compute the tax for the taxable portion: 1. Calculate the excess amount (Total benefit Given: - Non-taxable limit) Overtime (h)= 1 hour Regular Hour= 8 hours Hourly Rate (r)= ₱52.00 Maundy Thursday April 14 Overtime Pay= 1.25 x h x r 1.25 x 1 x 52 Good Friday April 15 Overtime Pay= ₱65.00 Labor Day May 01 Working Hours include the time employees spend on duty or at the prescribed workplace or when they are Eid’l Fitr May 03 permitted to work. Short rest periods during work time also count as hours worked. Employers must Independence Day June 12 provide at least 60 minutes of break for regular meals, which don't count as hours worked, unless stated in the problem. Eid’l Adha July 09 Night Shift Differential Pay An additional 10% of the hourly rate is given to National Heroes’ Day August 29 employees who work from 10:00pm – 6:00am. Bonifacio Day November 30 (1.1 x h x r) Example: Christmas Day December 25 Bea, a call center agent, works from 6:00 pm until 3:00 am with a one-hour break scheduled at 9:00 Rizal Day December 30 pm to 10:00 pm. How much would her total earnings be if her hourly rate is ₱55.00? Given: Special Holidays Night Shift (h)= 5 hours More flexible. Apart from being enacted by Regular Hour (H)= 3 hours Congress, they can also be declared by the Hourly Rate (r)= ₱55.00 President. An employee who works on a Special Holiday receives 130% of her hourly rate. Total Earnings= Regular Pay + Nightshift Pay = H x r + 1.1 x h x r = 3 x 55 + 1.1 x 5 x 55 Holiday Date = 165 + 302.50 Chinese New Year February 01 Total Earnings= ₱467.50 EDSA Revolution February 25 Anniversary Premium Pay Black Saturday April 16 Premium Pay Rate Regular Holiday 200% Ninoy Aquino Day August 21 Special Holiday 130% Rest Day 130% All Saint’s Day November 01 Overtime on Premium 130% Pay All Soul’s Day November 02__ Regular Holiday + 260% Rest Day Feast of Immaculate December 08 Special Holiday + Conception of Mary 150% Rest Day Double Holiday 300% Christmas Eve December 24__ Premium Pay Last Day of the Year December 31__ Refers to a higher wages given to employees who work on holidays and rest days. Regular Holidays Rest Day Those that usually have a fixed date. An An employee who works on his/her rest day employee who works on a regular holiday receives 130% of her hourly rate. receives 200% of her hourly rate. Overtime on Premium Pay Holiday Date An employee who works overtime scheduled on premium pay receives 130% of her hourly rate. New Year’s Day January 01 Regular Holiday + Rest Day An employee who works on regular holiday Araw ng Kagitingan April 09 which also happened to be his/her rest day receives 260% of her hourly rate.  Line Graph (to show trends) Special Holiday + Rest Day Uses line segments to connect data points to An employee who works on special holiday which show relationship of consecutive points. also happened to be his/her rest day receives 150% of her hourly rate. Bar Graph (to compare values across categories.) Double Pay Uses rectangles erected on the horizontal axis to An employee who works on double holiday summarize a set of quantitative data. It is receives 300% of her hourly rate. composed of discrete bars that represent different categories of data. Pie Chart (to compare parts of a whole) Analysis and Presentation of Business Data Circular chart with wedges or sectors to show how much of the whole each part make up, do not show changes over time. Data Data came from the Latin word “datum” which means “a thing given”. Data refers to factual Pictograph Pictorial representation of data using images, information in raw or unorganized form. We can icons, or symbols. They help in representing the present data in three forms: (1) tabular; (2); data visually interesting and easy to understand. graphical; and (3) textual. They can be useful for representing a large amount of data. Presentation of Data Powerful communication tools that may simplify Textual Form data by making it easily understandable and Data can be presented using paragraphs or readable while also engaging and maintaining sentences. It involves enumerating important the interest of its readers and effectively characteristics, emphasizing significant figures, presenting enormous volumes of complex data in and identifying important features of data. a simpler manner. Tabular Form Data is presented in table helps represent even a Measures of Central Tendency also referred to as measure of center or central large amount of data in an engaging, easy to read, location, is a summary measure that attempts to and coordinated manner. The data is arranged in describe a whole set of data with a single value rows and columns. that represents the middle or center of its distribution. Major Parts: 1. Title 2. Box Head (column captions) Mean 3. Stub (row captions) It is at the center of the distribution. To find the Abdon, Bianca Nicole A. 4. Body mean add up all the numbers, then divide by how many numbers there are. Minor Parts: 1. Table Number Median 2. Prefatory Notes It is the middle value or mid point in the 3. Footnotes distribution when the values are arranged in ascending and descending order. Goodluck! 4. Source Notes Mode GENERAL RULES OF TABULATION It is the number which appears often. 1. A table should be simple but attractive. 2. The numerical information should be arranged in an orderly manner to facilitate valid and convincing conclusions. 3. There should be proper & clear headings for columns and rows. 4. The tables are flexible and capable of being altered to meet the changing times. 5. If there is a vast data, it is suggested to construct 6. additional tables. Graphical Forms It is a pictorial representation of a set of data showing relationships. 1. Line Graphs 2. Bar Graphs 3. Pie Graph 4. Pictograph