Payroll – sample problem

Assume that the following are employees of Speedy Delivery Service owned and operated by
John Dimatulac:

Name Position Tax Status Monthly

Beverly Cruz Clerk-typist Single 17,000.00
Enrica Fajardo Secretary Married with one dependent 17,600.00
Abaraham Lim Messenger Married with no dependent 14,000.00
David Manahan Messenger Single 14,000.00
Charito Perez Cashier Married with one dependent 18,000.00

Assume that Enrica Fajardo got a cash balance of P1,700 on July 17 to be deducted against her
salary at the end of July.

The law requires that withholding tax be withheld every payroll date, all the other contributions
are withheld only once from the payroll nearest the end of the month. And since these are
deducted only once a month, the basis of computation is the monthly gross compensation.
Some companies, however, deduct all contributions semi-monthly so that the take home pay
will always be of the same amount. This way, the employee will find it easy to prepare a budget
of daily expenditures. Lecturer will use the procedure of deducting monthly the withholding tax
and other contributions only at the end of the month.