Republic of the Philippines

Department of Education
Cordillera Administrative Region
Division of Apayao
FLORA NATIONAL HIGH SCHOOL
Poblacion East, Flora, Apayao

BUSINESS MATH
SECOND SEMESTER S.Y. 2019-2020

I. Solve the problem and follow the format of the table.

Mr. Reyes received the following compensation and benefits for a year, working as an IT Officer.
Annual Basic Salary ₱200,000
13th Month Pay and Bonuses₱75,000
Uniform Allowance ₱7,500
Rice Subsidy ₱30,000

Description Taxable Non Taxable

Annual Basic Salary
De Minimis Benefits
Clothing Allowance
Rice Subsidy
Uniform Allowance
Other Benefits
13th Month Pay and Bonuses
Excess Rice Subsidy
Excess Uniform/Clothing
TOTAL

II. Write DEBIT if the statement is true and CREDIT if the statement is false.
1. All allowances are nontaxable.
2. If the monthly clothing allowance is ₱400, then the taxable amount for clothing allowance is ₱1,200.
3. Allowances are considered part of earnings.
4. Nontaxable benefits include all monetized leave credits.
5. All bonuses or allowances are nontaxable.
6. All benefits of government officials and employees are nontaxable.
7. Taxes are added in the deduction.
8. Thirteenth month pay may or may not be taxed.
9. If the total deduction is 0, then it follows that gross earnings is nontaxable.
10. There is possibility that a certain employee will be exempted from tax even if he/she receives some benefits.

Prepared by:
REIZEL JANE I. PASCUA
Subject Teacher