Compute the taxable benefits of a rank-and-file employee of a government owned and controlled corporation 1....

 

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Compute the taxable benefits of a rank-and-file employee of a government owned and controlled corporation 1. Based on the current year data, compute the tax-exempt compensation income of an employee: Salary, gross of withholding tax Php 480,000; Allowance Php 20,000; Thirteenth month pay Php 40,000; Christmas bonus Php 40,000; Reimbursement for transportation expenses Php 5,000; Payroll deductions: SSS contributions (mandatory contributions Php 4,000) Php 6,000; PhilHealth contributions (mandatory contributions Php 3,000) Php 5,000; Pag-Ibig contributions (mandatory contributions Php 2,400) Php 3,400; Charitable contributions by the employee to the employer's outreach program Php 5,000; Loan payment Php 20,000 2. Compute the taxable benefits of a rank-and-file employee of a government owned and controlled corporation who received the following benefits from his employer: 13th month pay Php 40,000 14th month pay 40,000 Christmas bonus 22,000 16,000 20,000 Loyalty award Additional compensation allowance (ACA) 3. AA, an official of NA PRESSURE Corporation, asked for an earlier retirement because he was immigrating to Canada with his girlfriend. He was paid Php 3,000,000 as separation pay in recognition of his valuable services to the corporation. BB, another official of the same company was separated for occupying a redundant position. He was given Php 1,000,000 separation pay. CC, who has rendered 11 years of service and is now 55 years old. He opted to retire for the first time. He received Php 2,000,000 retirement pay. The total income subject to withholding tax is? 4. Juana Tamad, widow received the following during 2018: Received $500 ($1=Php44) monthly interest income from the pension plan of his deceased husband who served in the US Army for 20 years. Won a beauty contest "Miss Byuda 2018". She received the following as prizes: Cash prize, Php 50,000 Free trip abroad worth Php 50,000 College scholarship worth Php 100,000 Goods worth Php 20,000 Php 100,000 from her debtor in payment of a loan, and interest in the sum of Php 15,000. Inherited from her grandmother a lot and apartment valued at Php 2,500,000 from which she is receiving monthly rental of Php 15,000. Compute the income subject to income tax. 5. Pedro, single, is a minimum wage earner who earns a basic minimum wage of Php 180,000 for the year 2018. He also received the following benefits: De minimis Php 140,000 (80,000 over the ceiling) 13th month pay and other benefits Php 112 000 Compute the taxable benefits of a rank-and-file employee of a government owned and controlled corporation 1. Based on the current year data, compute the tax-exempt compensation income of an employee: Salary, gross of withholding tax Php 480,000; Allowance Php 20,000; Thirteenth month pay Php 40,000; Christmas bonus Php 40,000; Reimbursement for transportation expenses Php 5,000; Payroll deductions: SSS contributions (mandatory contributions Php 4,000) Php 6,000; PhilHealth contributions (mandatory contributions Php 3,000) Php 5,000; Pag-Ibig contributions (mandatory contributions Php 2,400) Php 3,400; Charitable contributions by the employee to the employer's outreach program Php 5,000; Loan payment Php 20,000 2. Compute the taxable benefits of a rank-and-file employee of a government owned and controlled corporation who received the following benefits from his employer: 13th month pay Php 40,000 14th month pay 40,000 Christmas bonus 22,000 16,000 20,000 Loyalty award Additional compensation allowance (ACA) 3. AA, an official of NA PRESSURE Corporation, asked for an earlier retirement because he was immigrating to Canada with his girlfriend. He was paid Php 3,000,000 as separation pay in recognition of his valuable services to the corporation. BB, another official of the same company was separated for occupying a redundant position. He was given Php 1,000,000 separation pay. CC, who has rendered 11 years of service and is now 55 years old. He opted to retire for the first time. He received Php 2,000,000 retirement pay. The total income subject to withholding tax is? 4. Juana Tamad, widow received the following during 2018: Received $500 ($1=Php44) monthly interest income from the pension plan of his deceased husband who served in the US Army for 20 years. Won a beauty contest "Miss Byuda 2018". She received the following as prizes: Cash prize, Php 50,000 Free trip abroad worth Php 50,000 College scholarship worth Php 100,000 Goods worth Php 20,000 Php 100,000 from her debtor in payment of a loan, and interest in the sum of Php 15,000. Inherited from her grandmother a lot and apartment valued at Php 2,500,000 from which she is receiving monthly rental of Php 15,000. Compute the income subject to income tax. 5. Pedro, single, is a minimum wage earner who earns a basic minimum wage of Php 180,000 for the year 2018. He also received the following benefits: De minimis Php 140,000 (80,000 over the ceiling) 13th month pay and other benefits Php 112 000

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ANSWER 1 To compute the taxexempt compensation income of an employee we need to identify the items that are considered taxexempt and subtract any deductions or contributions Taxexempt compensation inc... View the full answer