Answer to Question #169458 in Accounting for Jichang

Question

2. SSS Enterprises hired Joseph Ramos as an Accounting Clerk. He accepted a monthly basic pay of P18,000. For the first six months, it was a company policy that he will be under probationary employment status and as such will be paid on a daily basis. No work, no pay applies to him.

Assuming that the company observes a 262 working days per year and Joseph works for 22 days for the month of January 2020 with 18 hours of overtime pay. Compute his salary for the month, net of mandatory deductions.

Answer 1

January Net pay for Joseph Ramos

Basic salary (22 days worked)-full month P18,000.00

Overtime pay ( 18hrs ) 1,836.00

Gross salary P19,836.00

Less

SSS P 900

Philhealth 297.54

Pag-IBIG 100

Total deductions 1,297.54

Net pay (gross salary - deductions) P18,538.46

Workings

$Overtime=\frac{P18,000}{22\times8}\times18 hours=P1,836$

$Tax on income=0.045\times P19,836=900$

$Philhealth= 0.015\times19,836=297.54$

Net pay = P18,538.46