I.

DETERMINE THE TAXABLE AMOUNT OF DE MINIMIS BENEFITS

PROBLEM 1

Mwuah, a private employee who is paid a P525 daily rate, receives the following benefits
during the year 2020:

Monetized unused vacation leave credits 7 days

Monetized unused sick leave credits 7 days
Medical assistance P 17,000
Rice subsidy (3,000 per month) 36,000
Clothing allowance 6,000

PROBLEM 2

Bibiko, a government rank and file employee, received the following benefits:

Monetized unused vacation leave credits (10 days) P6,000

Monetized unused sick leave credits (30 days) 18,000
Medical assistance 10,000
Employee achievement award for 10 years of service 20,000
Uniform allowance 7,000

PROBLEM 3

Lovely, a private employee who is paid a P500 daily rate, receives the following benefits
during the year 2020:

Monetized unused vacation leave credits 9 days

Medical assistance 7,000
Rice subsidy (3,000 per month) 36,000
Laundry allowance 1,200
Meal allowance for overtime work for 10 days 1,500

II. DETERMINE THE TAXABLE 13TH MONTH PAY AND OTHER BENEFITS

PROBLEM 1

Mwuah, a private employee who is paid a P525 daily rate, receives the following benefits
during the year 2020:

13 month pay 13,650

14 month pay 30,000
Monetized unused vacation leave credits 7 days
Monetized unused sick leave credits 7 days
Medical assistance P 17,000
Rice subsidy (3,000 per month) 36,000
 Clothing allowance 6,000

PROBLEM 2

Bibiko, a government rank and file employee, received the following benefits:

13th month pay 45,000

Christmas bonus 20,000
Monetized unused vacation leave credits (10 days) P6,000
Monetized unused sick leave credits (30 days) 18,000
Medical assistance 10,000
Employee achievement award for 10 years of service 20,000
Uniform allowance 7,000

PROBLEM 3

Lovely, a private employee receives the following benefits during the year 2020:

13th month 50,000

Performance bonus 25,000
Christmas gift 15,000
Monetized unused vacation leave credits 9 days
Medical assistance 7,000
Rice subsidy (3,000 per month) 36,000
Laundry allowance 1,200
Meal allowance for overtime work for 10 days 1,500

III. Determine the taxable 13th month pay and other benefits, additional compensation, and the
fringe benefit subject to fringe benefit tax.

A managerial employee received the following benefits in 2020:

13th month pay P195,000

Rental expense on condominium unit 38,000
Salary of personal body guard 26,000
Tuition fee of son who is 12,000
Rice allowance 32,400
Clothing allowance 7,000
Night shift differential pay 11,000

Required: Determine the taxable 13th month pay and other benefits, additional compensation, and the
fringe benefit subject to fringe benefit tax.