PAYROLL WORKSHOP

Kevin Troy M. Chua, CPA, CPP®

Megabest Manufacturing Company is to prepare the month-end payroll for the month of November 2020. For purposes of payroll preparation, the following information are made
available:

Employee Name ALARAS, ARLA GABRIELLE (A0012)

Position Assembler
Monthly Basic Salary Php 15,000.00 paid monthly
Equivalent Daily Rate Php 493.15
Hourly Rate Php 61.64

Employee Name HERMOSO, CHARLOTTE (P0016)

Position Painter and Packager
Monthly Basic Salary Php 16,000.00 paid monthly
Equivalent Daily Rate Php 526.03
Hourly Rate Php 65.75

Employee Name LAURITO, GIDJETTE ANNE (F0231)

Position Factory Supervisor
Monthly Basic Salary Php 30,000.00 paid monthly
Equivalent Daily Rate Php 986.30
Hourly Rate Php 123.29

Employee Name SANTIAGO, EDSEL (Q0144)

Position Quality Control Inspector
Monthly Basic Salary Php 45,000.00 paid monthly
Equivalent Daily Rate Php 1,479.45
Hourly Rate Php 184.93

Employee Name SKRIBIKIN, GABRIELLE (O0331)

Position Office Administrative Staff
Monthly Basic Salary Php 18,000.00 paid monthly
Equivalent Daily Rate Php 591.78
Hourly Rate Php 73.97
• Accumulated late and absences:
Late Absences and leave
ALARAS, ARLA GABRIELLE 0.45 hours 1 day paid
HERMOSO, CHARLOTTE 0.96 hours 1 day paid
LAURITO, GIDJETTE ANNE 1.22 hours 1 day unpaid
SANTIAGO, EDSEL - 1 day paid
SKRIBIKIN, GABRIELLE - 1 day unpaid

• Work done on special non-working day:

Date Duration
ALARAS, ARLA GABRIELLE November 2, 2020 Whole day
HERMOSO, CHARLOTTE November 2, 2020 Whole day
LAURITO, GIDJETTE ANNE November 2, 2020 Whole day
SANTIAGO, EDSEL November 2, 2020 Whole day
SKRIBIKIN, GABRIELLE November 2, 2020 Whole day

• Overtime information
Regular hours With night
differential
ALARAS, ARLA GABRIELLE 2.50 -
HERMOSO, CHARLOTTE 3.50 2.00
LAURITO, GIDJETTE ANNE 4.25 2.50
SANTIAGO, EDSEL 1.00 -
SKRIBIKIN, GABRIELLE 1.00 -

• Benefits and allowances

Transportation Rice Subsidy
ALARAS, ARLA GABRIELLE 1,500 2,000
HERMOSO, CHARLOTTE 1,500 2,000
LAURITO, GIDJETTE ANNE 1,500 2,000
SANTIAGO, EDSEL 1,500 2,000
SKRIBIKIN, GABRIELLE 1,500 2,000
 • Other deductions
Type Amount
ALARAS, ARLA GABRIELLE Company lanyard 150.00
HERMOSO, CHARLOTTE Merchandise 200.00
LAURITO, GIDJETTE ANNE SSS Loan 736.19
SANTIAGO, EDSEL Merchandise 200.00
SKRIBIKIN, GABRIELLE HDMF Loan 396.15

Prepare the following:

1. Completed payroll register with correct amount of gross pay, statutory deductions, withholding tax, and net pay.
2. Payroll journal entries to recognize payroll for the month and assigning them to production. Assume that assembly, painting, and packaging lies within one department only.
MEGABEST MANUFACTURING COMPANY
Payroll Register
November 1-30, 2020
A-B+C+D+E F-E-G-H-I G+H+I+K+L F-M
A B C D E F G H I J K L M N
Other Other
Lates/Absen taxable nontaxable Taxable Withholding Other Total
Ecode Employee Name Basic Pay ces Overtime income income GROSS PAY SSS-EE PHIC-EE HDMF-EE income Tax deductions deductions NET PAY
MEGABEST MANUFACTURING COMPANY
Lates and absences
November 1-30, 2020

Late Absent Absent Total

Ecode Employee Name Daily rate Hourly rate Late hours deduction Absent days hours deduction deduction
A0012 ALARAS, ARLA GABRIELLE
P0016 HERMOSO, CHARLOTTE
F0231 LAURITO, GIDJETTE ANNE
Q0144 SANTIAGO, EDSEL
O0331 SKRIBIKIN, GABRIELLE
MEGABEST MANUFACTURING COMPANY
Overtime and other premium
November 1-30, 2020

Night shift
Regular Regular differential
Overtime Overtime Overtime Speical day Special day Night shift Night shift premium Total
Ecode Employee Name Daily rate Hourly rate hours pay premium hours premium hours pay pay overtime
A0012 ALARAS, ARLA GABRIELLE
P0016 HERMOSO, CHARLOTTE
F0231 LAURITO, GIDJETTE ANNE
Q0144 SANTIAGO, EDSEL
O0331 SKRIBIKIN, GABRIELLE
MEGABEST MANUFACTURING COMPANY
Other taxable income
November 1-30, 2020

Ecode Employee Name TRAN Total TI

A0012 ALARAS, ARLA GABRIELLE
P0016 HERMOSO, CHARLOTTE
F0231 LAURITO, GIDJETTE ANNE
Q0144 SANTIAGO, EDSEL
O0331 SKRIBIKIN, GABRIELLE
MEGABEST MANUFACTURING COMPANY
Other nontaxable income
November 1-30, 2020

Ecode Employee Name RICE Total NTI

A0012 ALARAS, ARLA GABRIELLE
P0016 HERMOSO, CHARLOTTE
F0231 LAURITO, GIDJETTE ANNE
Q0144 SANTIAGO, EDSEL
O0331 SKRIBIKIN, GABRIELLE
MEGABEST MANUFACTURING COMPANY
Other deductions
November 1-30, 2020

Ecode Employee Name SSSL PIML MERCH LY Total

A0012 ALARAS, ARLA GABRIELLE
P0016 HERMOSO, CHARLOTTE
F0231 LAURITO, GIDJETTE ANNE
Q0144 SANTIAGO, EDSEL
O0331 SKRIBIKIN, GABRIELLE
MEGABEST MANUFACTURING COMPANY
Statutory deductions
November 1-30, 2020

Ecode Employee Name Basic pay Gross pay SSS-EE SSS-ER PHIC-EE PHIC-ER HDMF-EE HDMF-ER Total EE Total ER
A0012 ALARAS, ARLA GABRIELLE
P0016 HERMOSO, CHARLOTTE
F0231 LAURITO, GIDJETTE ANNE
Q0144 SANTIAGO, EDSEL
O0331 SKRIBIKIN, GABRIELLE
Factory salaries and wages
Salaries and wages expense
SSS contributions payable - EE
PHIC contributions payable - EE
HDMF contributions payable - EE
Withholding tax payable
SSS loan payable - EE remittance
HDMF loan payable - EE remittance
Lanyards and company merchandise
Salaries and wages payable - factory
Salaries and wages payable - administrative
To recognize factory and administrative salaries.

SSS employer share expense

PHIC employer share expense
HDMF employer share expense
Manufacturing overhead
SSS contributions payable - ER
PHIC contributions payable - ER
HDMF contributions payable - ER
To record employer share of contributions.

Work-in-process inventory
Manufacturing overhead
Factory salaries and wages
To charge factory payroll to production.