Immaculate Conception Academy 10 Grant Street, Greenhills San Juan City HIGH SCHOOL DEPARTMENT

BUSINESS MATHEMATICS
First Semester SY 2019-2020

Exercise Sheet 7
Employee Compensation

Directions: Supply the answer and solution. Treat each item independently unless otherwise stated.

1. Identify if the given compensation falls under SALARY or WAGE:

a. Mr. A receives PhP 18,000 monthly pay as a cashier.
b. Ms. B is paid PhP 500 a day as a saleslady in a boutique in Baclaran.
c. Mr. C is paid PhP 450 a day as a foreman in a construction site.
d. Ms. D takes home PhP 25,000 every month as an executive assistant.
e. Engr. E receives PhP 45,050 every two weeks as the chief engineer of a construction company.
f. Mr. F takes home PhP 50,750 monthly as a sales supervisor.
g. Ms. G earns PhP 450 per day as a mason in a construction company.
h. Mr. H is paid PhP 50 per hour as a store clerk and works part-time for 4 to 5 hours a day.
i. Ms. I receives gross pay of PhP 250,000 as Vice President in an international school.

2. Eriel is a minimum wage earner working in National Capital Region under non-agriculture sector. How much is his
GROSS INCOME / PAY if he worked for 20 days?

3. Anne is a factory worker paid PhP 82.13 per hour. She worked for a total of 5 days in a week. How much will
Anne’s gross pay be after a week?

4. Julie earns PhP 1,240 per day. She worked overtime for a total of 6 hours in a 5-day work week. How much is her
gross income for the 5-day work week?

5. Ange earns PhP 600 a day. She worked overtime for 12 hours on a particular pay period. How much is Ange’s
overtime pay?

a. Assuming the overtime took place on ordinary days

b. Assuming the overtime took place on her rest days
c. Assuming the overtime took place on special holidays
d. Assuming the overtime took place on her rest days AND at the same time special holidays
e. Assuming the overtime took place on regular holidays
f. Assuming the overtime took place on regular holidays AND at the same time her rest days

6. Fill in the missing items in the following table:

Hourly Overtime No. of Overtime Gross Pay
Daily Rate Day Shift
Rate Hourly Rate overtime hours Pay for the day
PhP 600.00 Regular holiday Day 2.5
PhP 998.00 Rest day Night 4
PhP 774.00 Special holiday Day 2
Rest day and
PhP 899.00 Night 3
regular holiday
PhP 645.00 Ordinary day Night 12.5

7. Ms. Buenavista received an annual basic salary of PhP 240,000 from her only employer for the past year. By
December, what would be her 13th month pay?

8. Mr. Germano had two (2) employers in 2018; BM Enterprise (January to July 2018) and OM International (August to
December 2018). When he was working for BM Enterprise, he receives a monthly basic salary of PhP 25,000. On
the other hand, when he transferred to OM International, he got a higher monthly basic pay of PhP 28,000.
Compute for the amount of 13th month pay that Mr. Germano should have received in 2018.

9. Mr. Faj is a government employee and has ten (10) days sick leave credits and seven (7) days vacation leave
credits. His daily rate is PhP 620 and did not avail the sick and vacation leave credits, so the employer monetized
it. How much will be the additional earning from this and how much of it will be taxed?

10. In the year 2018, Ms. Calleja’s private employer provided her with the following benefits:

a. 18 days monetized unused vacation leave credits, where one vacation leave credit is equivalent to PhP3,000
b. PhP 4,500 per semester medical cash allowance to Ms. Calleja’s dependents
c. Uniform and clothing allowance of PhP 5,800 for the whole year
d. Rice subsidy of PhP 5,000
e. Laundry allowance of PhP 800 per month
f. Thirteenth month pay of PhP 60,000

If these are all the benefits received by Ms. Calleja, how much of these benefits are taxable?