Answer to Question #270480 in Accounting for Another you

Question

A. Compute for the monthly income tax payroll deductions of Bong Ga and Bato Din.

1. In 2020, DRP Company has two employees-Bong Ga and Bato Din. Bong and Bato's gross monthly compensation is 60,000 and 70,000 respectively (ndt of mandatory contributions). Both are paid on the 30th of the month.

Answer 1

Let the income tax rate be 13%

Then the net wages will be:

$60000-0.13\times60000=52 200$13

$70000-0.13\times70000=60900$