AEC 209- Income Taxation

Problem Solving

Problem 3
A government rank and file employee had the following summary of his compensation
and benefits in 2019.
Gross compensation P 939,000
Employee payroll deduction:
Employee contribution to GSIS,PHIC,HDMF P 72,000
Withholding tax 57,600 129,600
Net regular payroll P810, 000
Representation and transportation allowance 16,200
PERA 21,600
Christmas bonus 78,300
Uniform allowance 10,800

m
Christmas gift 4,500

er as
Honoraria 13,500

co
Total compensation P 954,900

eH w
Required: Compute for taxable compensation income

o.
rs e De Minimis Non- Other Taxable
ou urc
taxable benefits benefits
Regular and supplementary compensation:
Mandatory deductions P 72,000
o

Regular compensation P 867,000

aC s

Supplemental compensation
vi re

Honoraria 13,500
RATA 16,200
y

PERA 21,600
Total P0 P 880,500
ed d

13 month pay and other benefits

ar stu

Christmas bonus P 78,300

Christmas gift 4,500
Excess De minimis
is

Uniform Allowance P 10,800 6,000 4,800

Total 10,800 43,800 87,600
Th

Exclusion threshold ```90,000 -90,000

Total 133,800 0
Total non-taxable compensation 205,800
sh

Taxable excess 13th month pay and other benefits 0 0

Taxable compensation income P 880,500

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