Professional Documents
Culture Documents
The following are to be accounted for in the next table, namely the Payroll Register:
1) The monthly salary of the employee is paid on a semi-monthly basis
2) The mandatory contributions to the GSIS, PHILHEALTH, and PAG-IBIG are deducted on the
salary for the second half of the month.
3) All employees who are engaged in work related to Accountancy are accounted for as direct labor
cost and posted to the Job Order Cost Sheets (JOCS). Meanwhile, employees engaged in the
administrative function are charged to indirect labor cost and posted to the Departmental Overhead
Analysis Sheet (DOAS).
4) *PS stands for “Personal Share.” This amount is personally paid for by the employee through a
monthly salary deduction.
5) *GS stands for “Government Share,” also known as the “Employer’s Share.” This amount is
directly paid for by the employer or the government itself.
6) *EC stands for “Employee Compensation.” This amount is also a contribution by the employer or
the government itself.
7) For PHILHEALTH contributions, the revised percentage of 3 is used for the year 2020.
8) The Payroll Register is followed by subtables that show the computation for values found in the
column of the withholding tax and the columns for GSIS-related values, namely the personal share,
government share and employee compensation.
Take note that the succeeding tables are divided in half. The next table may be the continuation.
CEBU BAKERY INC.
P. DEL ROSARIO, CEBU CITY
Payroll Register
GRAND ₱ ₱ ₱ ₱ ₱ ₱ ₱ ₱ ₱
TOTAL 329,226 164,613 29,630.34 39,507.12 1,000 1,000 1,000 4,938.39 4,938.39
Table 1.1: Payroll Register
Continuation:
GSIS LOANS Gross Taxable Withholding
Net Pay
Last Name Consolidated Emergency Income Tax
Mangubat ₱ 12,475.62 ₱ 411.72 ₱ 12,063.89
Samson ₱ 20,131.51 ₱ 2,116.13 ₱ 18,015.38
Pino
₱ 12,231.51 ₱ 362.90 ₱ 11,868.60
Delos Reyes ₱ 1,534.51 ₱ 10,905.56 ₱ 97.71 ₱ 10,807.84
Felicia ₱ 12,524.60 ₱ 421.52 ₱ 12,103.08
Congmon ₱ 2,034.99 ₱ 9,935.82 ₱ - ₱ 9,935.82
Lopena ₱ 11,834.14 ₱ 283.43 ₱ 11,550.71
Gimenez ₱ 11,834.14 ₱ 283.43 ₱ 11,550.71
Alistado ₱ 11,800.96 ₱ 276.79 ₱ 11,524.16
Baje ₱ 11,800.96 ₱ 276.79 ₱ 11,524.16
GRAND
TOTAL ₱ 3,569.50 ₱ - ₱ 125,474.77 ₱ 4,530.42 ₱ 120,944.35
Table 1.2: Payroll Register
The Bureau of Internal Revenue has revised the withholding tax table and has issued a new
income tax law, namely the TRAIN law, which is effective on January 1, 2018 to December 31,
2022. The values of the Withholding Tax table below are found in the Payroll Register. The
computation for the employees’ income tax is as follows:
Philippine Accountancy Inc.
20th Floor, LKG Center Ayala Ave. Makati 1200
Withholding Tax Computation
Continuation:
Employee Lopena Gimenez Alistado Baje TOTAL
Taxable Compensation ₱ 11,834.14 ₱ 11,834.14 ₱ 11,800.96 ₱ 11,800.96 ₱ 125,474.77
Less: Minimum Comp.
Range ₱ 10,417.00 ₱ 10,417.00 ₱ 10,417.00 ₱ 10,417.00
Excess ₱ 1,417.14 ₱ 1,417.14 ₱ 1,383.96 ₱ 1,383.96
Multiply by: withholding
% 20% 20% 20% 20%
Tax on Excess ₱ 283.43 ₱ 283.43 ₱ 276.79 ₱ 276.79 ₱ 3,280.42
Add: Predetermined Tax ₱- ₱ - ₱- ₱ - ₱ 1,250.00
Total Semi-Monthly
Withholding Tax ₱ 283.43 ₱ 283.43 ₱ 276.79 ₱ 276.79 ₱ 4,530.42
Table 2.2: Withholding Tax Computation
The basis for taxable compensation is found in the Gross Taxable Income column under the
Payroll Register. The minimum computation range, withholding percentage, and predetermined
tax is provided for by the revised withholding tax table.
The government agency shall deduct from the fixed monthly compensation of the employee the
loan amortizations (consolidated loans, policy loan, emergency loan, housing loan, and other
loans), premium payments (optional, pre-need and other non-life insurance) and other amounts
due the GSIS.
The GSIS Contribution Payable for the employee is the PS or the Personal Share under the
Payroll Register table. This is a premium payment due to the GSIS. Unlike the withholding tax
table aforementioned that uses Taxable Income as basis for its computation, the basis for the
GSIS personal share is the employees’ basic pay per month. The computation is shown below as
follows:
As shown in the table, the monthly pay is always multiplied by 12 percent regardless of its.
amount. The monthly pay is not capped like the withholding tax payable. Therefore, the
employer shall always contribute 12 percent of their employees’ actual monthly salary due to the
GSIS.
Under the ‘Amended Rules on Employee Compensation Commission,’ the employee is also
entitled to an employee compensation by their employer.
Section 1 states the rate and amount of employee compensation. Subject to the following
conditions, contributions under this Rules shall be paid in their entirety by the employer and any
contract or device for the deduction of any portion thereof from the wages or salary of the
employees shall be null and void.
For a covered employee in the public sector, his employer shall remit to the GSIS a monthly
contribution equivalent to One percent of the basic salary or One hundred pesos (P 100) per
month per employee whichever is lower. (as provided under Board Resolution No. 02-04- 235,
dated April 11, 2002).
The following table on the next page shows the journal entries that relate to the Payroll and
Employee Register of Philippine Accountancy Incorporation. In recording the distribution of
factory payroll, the basic pay of accountants and auditors shall be directly charged or debited to
Work in Process while the basic pay of the office manager shall be charged or debited to Factory
Overhead Control. All values found in the journal entries are found in the Payroll Register.
© Philippine Accountancy Inc.® All rights reserved. Page 1
Cebu Bakery Inc.
General Journal
April 31, 2020
DATE
Assigned Task: Provided for the Payroll Accounting computations and explanations through the
corresponding tables, namely the payroll register, employee register, journal entries, along with
other subtables showcasing the solutions to the values found in the payroll register and journal
entries.
REFERENCE:
Amaya, R. D., Aranas, K. M., Fornolles, M. S., Micabalo-Amaya, F. B., & Sevilla, J. G. (2020).
Labor Cost Accounting. In Cost Accounting and Control (2020th ed., pp. 237–279). Pagadian
City, Region 7 / Philippines / Cebu: Chronicle Publishing Co. Ltd.
Fontamillas, A. F. (2013, September 7). COOP Laws and Social Legislation: GSIS. Retrieved
from https://www.slideshare.net/IssaGo/gsis-25977794
PhilHealth sets new contribution schedule; assures immediate eligibility to benefits. (n.d.).
Retrieved from https://www.philhealth.gov.ph/news/2019/new_contri.php