PROBLEM

MONTHLY SALARY Advances

MARIA 42,000.00
JUAN 20,000.00 1,000.00 Taken Sept 27
PEDRO 18,000.00

IT IS THE POLICY OF THE COMPANY TO DEDUCT THE WITHHOLDING TAX EVERY PAYROLL
AND THE SS, PAG-IBIG AND PHILHEALTH ARE ALL DEDUCTED FROM THE 2ND HALF OF THE
MONTH

ABC COMPANY
We hereby ACKNOWLEDGE receipt of the sum specified opposite our respective names as full compensation for our services r
for the period of Sept. 1-15, 2019.
WITHHOLDI SOCIAL
NAME GROSS PAY NG TAX SECURITY PHILHEALTH HDMF ADVANCES
MARIA 21,000.00 2,333.25 - - - -
JUAN 10,000.00 - - - - -
PEDRO 9,000.00 - - - - -
40,000.00 2,333.25 - - - -

How to compute the withholding tax

Gross pay ( 21K-0) 21,000.00
From the withholding tax table 16,667.00
Difference 4,333.00
Multiply the excess by 25% x 0.25
1,083.25
Add: Tax on the 16,667 per tax table 1,250.00
total withholding tax 2,333.25

Journal entry:

Salaries expense 40,000.00

Withholding tax payable 2,333.25
Cash 37,666.75

ABC COMPANY
We hereby ACKNOWLEDGE receipt of the sum specified opposite our respective names as full compensation for our services r
for the period of Sept. 16-30, 2019.

SEMI-
MO.GROSS WITHHOLDI SOCIAL
NAME PAY NG TAX SECURITY PHILHEALTH HDMF ADVANCES
MARIA 21,000.00 1,869.50 1,125.00 630.00 100.00
JUAN 10,000.00 900.00 300.00 100.00 1,000.00
PEDRO 9,000.00 810.00 270.00 100.00
40,000.00 1,869.50 2,835.00 1,200.00 300.00 1,000.00

How to compute the withholding tax

Gross pay 21,000.00 How to compute the Phil Health
SSS, NHIP, HDMF (21k-1,530) 1,855.00
Taxable semi monthly compensation income 19,145.00 Maria 42,000.00 x 3%
From the withholding tax table 16,667.00 Juan 20,000.00 x 3%
Difference 2,478.00 Pedro 18,000.00 x 3%
Multiply the excess by 25% 0.25
619.50
Add: Tax on the 16,667 per tax table 1,250.00
total withholding tax 1,869.50

Journal Entries

Advances to employees 1,000.00

Cash 1,000.00
To record the advances given to Juan

Salaries expense 40,000.00

Withholding tax payable 1,869.50
SSs premium payable 2,610.00
MPF premium payable 225.00
Philhealth premium payable 1,200.00
Pag-ibig Premium payable 300.00
Advances to Employees 1,000.00
Cash 32,795.50
To record the salaries for the 2nd half of the month

EMPLOYER'S CONTRIBUTION TABLE

SSS EC MPF HDMF NHIP TOTAL
MARIA 1,700.00 30.00 425.00 100.00 630.00 2,885.00
JUAN 1,700.00 30.00 - 100.00 300.00 2,130.00
PEDRO 1,530.00 30.00 - 100.00 270.00 1,930.00
4,930.00 90.00 425.00 300.00 1,200.00 6,945.00

MPF PREMIUM EXPENSE 425.00

SSS Premium Expense 4,930.00
Ec Premium Expense 90.00
Phil health premium expense 1,200.00
Pag-ibig Premium expense 300.00
SSS Premium Payable 4,930.00
 Ec Premium Payable 90.00
Phil health premium Payable 1,200.00
Pag-ibig Premium Payable 300.00
MPF premium payable 425.00

SSS Premium Payable 7,540.00

Ec Premium Payable 90.00
MPF premium payable 650.00
( 4,640 +2,320) cash 8,280.00

Phil health premium Payable 2,400.00

cash 2,400.00

Pag-ibig Premium Payable 600.00

Cash 600.00

Withholding tax payable 4,202.75

Cash 4,202.75
aken Sept 27 20833.3333

AX EVERY PAYROLL
HE 2ND HALF OF THE

ompensation for our services rendered

TOTAL
DEDUCTIONS NET PAY
2,333.25 18,666.75 250,000.00 12 MOS. 20833.3333
- 10,000.00 10416.6667
- 9,000.00
2,333.25 37,666.75
1ST HALF WITHHOLDING
2ND HALF WITHHOLDING, SSS, NHIP, HDMF

4,202.75

ompensation for our services rendered

630

TOTAL
DEDUCTIONS NET PAY
3,724.50 17,275.50 270
2,300.00 7,700.00
1,180.00 7,820.00
7,204.50 32,795.50 it is divided into 2 to get the
share of the
employeeemployee

1,260.00 /2 = 630
600.00 /2 = 300
540.00 /2 = 270

Salaries expense 40,000.00

Withholding tax payable 1,869.50
SSs/MPF premium payable 2,835.00
Philhealth premium payable 1,200.00
Pag-ibig Premium payable 300.00
Advances to Employees 1,000.00
Cash 32,795.50

To record the salaries for the 2nd half of the month

Account ttitle you may use
NHIP OR PHIL HEALTH premium payable
HDMF OR PAG-IBIG premium payable
SSS/MPF EC HDMF NHIP TOTAL
MARIA 2,125.00 30.00 100.00 630.00 2,885.00
JUAN 1,700.00 30.00 100.00 300.00 2,130.00
PEDRO 1,530.00 30.00 100.00 270.00 1,930.00
5,355.00 90.00 300.00 1,200.00 6,945.00

SSS/MPF Premium Expense 5,355.00

Ec Premium Expense 90.00
Phil health premium expense 1,200.00
Pag-ibig Premium expense 300.00
SSS/MPF Premium Payable 5,355.00
 Ec Premium Payable 90.00
Phil health premium Payable 1,200.00
Pag-ibig Premium Payable 300.00

SSS/MPF Premium Payable 8,190.00

Ec Premium Payable 90.00
cash 8,280.00
PROBLEM 2
MONTHLY SALARY Advances
MARIA 42,000.00
JUAN 20,000.00 1,000.00 Taken Sept 27
PEDRO 18,000.00

IT IS THE POLICY OF THE COMPANY TO DEDUCT THE WITHHOLDING TAX

SSS, PAG-IBIG, AND PHILHEALTH EVERY PAYROLL (15TH AND 30TH)

ABC COMPANY
We hereby ACKNOWLEDGE receipt of the sum specified opposite our respective names as full compensation for our services r
for the period of Sept. 1-15, 2019.

WITHHOLDI SOCIAL
NAME GROSS PAY NG TAX SECURITY MPF NHIP HDMF
MARIA 21,000.00 2,101.38 450.00 112.5 315.00 50.00
JUAN 10,000.00 450.00 150.00 50.00
PEDRO 9,000.00 405.00 135.00 50.00
40,000.00 2,101.38 1,305.00 112.50 600.00 150.00

How to compute the withholding tax

Taxable compensation ( 21K-927.50) 20,072.50
From the withholding tax table 16,667.00
Difference 3,405.50
Multiply the excess by 25% x 0.25
851.38
Add: Tax on the 16,667 per tax table 1,250.00
total withholding tax 2,101.38

Journal entry:

Salaries expense 40,000.00

Withholding tax payable 2,101.38
SS premium payable 1,305.00
MPF premium payable 112.50
Philhealth premium payable 600.00
Pag-ibig Premium payable 150.00
Cash 35,731.13

ABC COMPANY
We hereby ACKNOWLEDGE receipt of the sum specified opposite our respective names as full compensation for our services r
for the period of Sept. 16-30, 2019.
 WITHHOLDI SOCIAL PHILHEALT
NAME GROSS PAY NG TAX SECURITY MPF H HDMF
MARIA 21,000.00 2,101.38 450.00 112.5 315.00 50.00
JUAN 10,000.00 450.00 150.00 50.00
PEDRO 9,000.00 405.00 135.00 50.00
40,000.00 2,101.38 1,305.00 112.50 600.00 150.00

How to compute the withholding tax How to compute the Phil Health
Gross pay ( 21K-927.50) 20,072.50 19,470.00
From the withholding tax table 16,667.00 Maria 42,000.00 x 3%
Difference 3,405.50 Juan 20,000.00 x 3%
Multiply the excess by 25% x 0.25 Pedro 18,000.00 x 3%
851.38
Add: Tax on the 16,667 per tax table 1,250.00
total withholding tax 2,101.38

JOURNAL ENTRIES

Advances to employees 1,000.00

Cash 1,000.00
To record the advances given to Juan

Salaries expense 40,000.00

Withholding tax payable 2,101.38
SS premium payable 1,305.00
MPF premium payable 112.50
Philhealth premium payable 600.00
Pag-ibig Premium payable 150.00
Advances to Employees 1,000.00
Cash 34,731.13
To record the salaries for the 2nd half of the month

EMPLOYER'S CONTRIBUTION TABLE

SSS EC MPF HDMF NHIP TOTAL
MARIA 1,700.00 30.00 425 100.00 630.00 2,885.00
JUAN 1,700.00 30.00 100.00 300.00 2,130.00
PEDRO 1,530.00 30.00 100.00 270.00 1,930.00
4,930.00 90.00 425.00 300.00 1,200.00 6,945.00

JOURNAL ENTRIES
SSS Premium Expense 4,930.00
Ec Premium Expense 90.00
MPF Premium expense 425.00
Phil health premium expense 1,200.00
Pag-ibig Premium expense 300.00
 SSS Premium Payable 4,930.00
Ec Premium Payable 90.00
MPF Premium Payable 425.00
Phil health premium Payable 1,200.00
Pag-ibig Premium Payable 300.00

MPF premium payable 650.00

SSS Premium Payable 7,540.00
Ec Premium Payable 90.00
Cash 8,280.00

Phil health premium Payable 2,400.00

Cash 2,400.00

Pag-ibig Premium Payable 600.00

Cash 600

Withholding tax payable 4,202.75

Cash 4,202.75
aken Sept 27 20833.3333

ABC COMPA
ompensation for our services rendered We hereby ACKNOWLEDGE receipt of the sum specified opposi
services rendered for the period of Sept. 1-15, 2019.
TOTAL
DEDUCTION WITHHOL
ADVANCES S NET PAY NAME GROSS PAY DING TAX
3,028.88 17,971.13 MARIA 21,000.00 2,101.38
650.00 9,350.00 JUAN 10,000.00
590.00 8,410.00 PEDRO 9,000.00
- 4,268.88 35,731.13 40,000.00 2,101.38

Salaries expense
Withholding tax payable
SS /MPFpremium payable
Philhealth premium payable
8,280.00 Pag-ibig Premium payable
Cash

ompensation for our services rendered

 TOTAL
DEDUCTION
ADVANCES S NET PAY
3,028.88 17,971.13
1,000.00 1,650.00 8,350.00
590.00 8,410.00
1,000.00 5,268.88 34,731.13
it is divided into 2 to
get the share of the
employeeemployee

1,260.00 /2 = 630
600.00 /2 = 300
540.00 /2 = 270

Salaries expense
Withholding tax payable
SSS/MPF premium payable
Philhealth premium payable
Pag-ibig Premium payable
Advances to Employees
Cash

SSS/MPF EC HDMF NHIP TOTAL

MARIA 2,125.00 30.00 100.00 630.00 2,885.00
JUAN 1,700.00 30.00 100.00 300.00 2,130.00
PEDRO 1,530.00 30.00 100.00 270.00 1,930.00
5,355.00 90.00 300.00 1,200.00 6,945.00

SSS/MPF Premium Expense 5,355.00

Ec Premium Expense 90.00
Phil health premium expense 1,200.00
Pag-ibig Premium expense 300.00
SSS/MPF Premium Payable 5,355.00
 Ec Premium Payable 90.00
Phil health premium Payable 1,200.00
Pag-ibig Premium Payable 300.00

SSS/MPF Premium Payable 8,190.00

Ec Premium Payable 90
Cash 8,280.00
 ABC COMPANY
GE receipt of the sum specified opposite our respective names as full compensation for our
period of Sept. 1-15, 2019.
TOTAL
DEDUCTIO
SSS/MPF NHIP HDMF ADVANCES NS NET PAY
562.50 315.00 50.00 3,028.88 17,971.12
450.00 150.00 50.00 650.00 9,350.00
405.00 135.00 50.00 590.00 8,410.00
1,417.50 600.00 150.00 - 4,268.88 35,731.12

40,000.00
2,101.38
1,417.50
600.00
150.00
35,731.12
40,000.00
2,101.38
1,417.50
600.00
150.00
1,000.00
34,731.13
 500 42.5 22.5
1000 85 45
1500 127.5 67.5
2000 170 90
2500 212.5 112.5
3000 255 135
3500 297.5 157.5
4000 340 180
4500 382.5 202.5
5000 425 225

427.5
 MONTHLY

GROSS PAY 25,000.00

LESS: SSS 1,125.00
NHIP 375.00
HDMF 100.00 1,600.00
TAXABLE MONTHLY COMPENSATION INCOME 23,400.00
20,833.00
2,567.00
X 20%
513.40
ADD: THE TAX ON THE 20,833 -
513.40

15TH WITHHOLDING TAX SSS, NHIP, HDMF

30TH WITHHOLDING TAX SSS, NHIP, HDMF

GROSS PAY -SEMI MO. SALARY 11,800.00 23,600.00

LESS: SSS 528.75 354
NHIP 177
HDMF 50 755.75
TAXABLE SEMI-MONTHLY COMPENSATION INCOME 11,044.25
10,417.00
EXCESS FROM THE 10,417 627.25
MULTTIPLY IT BY 20%
TAX ON THE EXCESS 125.45
ADD: TAX ON TE 10,417 -
WITHHOLDING TAX 125.45
 Monthly
GROSS PAY 23,000.00
LESS SS &MPF 1,035.00
NHIP 345.00
HDMF 100.00 1,480.00
TAXABLE COMPENSATION INCOME 21,520.00
FROM THE WITHHOLDING TAX TABLE 20,833.00
DIFFERENCE 687.00
MULTIPLIED BY THE RATE 20%
137.4
ADD THE TAX ON 20,833.00 PER TAX TABLE 0
TOTAL WITHHOLDING TAX 137.4

750

GROSS PAY 50,000.00 50,000.00

LESS: SS 1,125.00
NHIP 750.00
HDMF 100.00 1,975.00 1,975.00
TAXABLE COMPENSATION INCOME 48,025.00
FROM THE WITHHOLDING TAX TABLE 33,333.00
DIFFERENCE 14,692.00
MULTIPLIED BY THE RATE 25%
3,673.00
ADD THE TAX ON 33,333.00 PER TAX TABLE 2,500.00
TOTAL WITHHOLDING TAX 6,173.00 6,173.00
41,852.00

15th day of the Month

Gross Pay-semi monthly 13,000.00 26000
Less: SSS 562.50 1.50%
NHIP 195.00 390
HDMF 50 807.50 195
TAXABLE COMPENSATION INCOME 12,192.50
10,417.00
EXCESS ON THE 10,417 1,775.50
MULTIPLY IT BY 20%
355.1
ADD TAX ON THE 10,417 0
TOTAL WITHHOLDING TAX 355.1
276,000.00 250,000.00 Monthly
20833.33333
23000 Gross pay
3% less: SSS 1125
690 NHIP 378.75
345 345 HDMF 100
TAXABLE INCOME

EXCESS
MULTIPY IT BY

TAX ON 20,833

25000 3%
1.50% EE
1.50% ER
3.00%

70,000.00
 25,250 25,250

25250

1603.75 -1603.75
23,646.25
20,833.00
2,813.25
20%
562.65
0
562.65 -562.65
23,084

750 375
375