SHS

Business Mathematics
Quarter 2, Week 6- Module 12
Use of E-spreadsheet in the
Computation of Salary and
Overtime Pay-
ABM_BM11SW-Ilf-10

1
Business Mathematics – SHS
Quarter 2, Week 6 – Module 12: Use of E-spreadsheet in the Computation of
Salary and Overtime Pay

Republic Act 8293, section 176 states that: No copyright shall subsist in any
work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other things,
impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this book are owned by their respective copyright
holders. Every effort has been exerted to locate and seek permission to use these
materials from their respective copyright owners. The publisher and authors do not
represent nor claim ownership over them.

Regional Director: Gilbert T. Sadsad

Assistant Regional Director: Jessie L. Amin
Development Team of the Module
Writer: EMMYLOYD C. BIERSO - ABM Teacher , Tabaco NHS
Editors: NERISSA A. MORTEGA - HT III, San Lorenzo NHS
JULMA B. CARGULLO - MT, TNHS
HILDA J. CARLET - MT, TNHS
Language Editors: CHERRY BASILLA - TNHS
DESIREE CANICULA - TNHS
Reviewers: DIOLETA B. BORAIS – EPS, Tabaco City
JINKY VILLAREAL – EPS, Iriga City
JONJON MONTER – Principal, Sagrada HS, Iriga City
LOYD BOTOR - EPS, RO V
Layout Artist: ROWENA B. BENOYO - San Lorenzo NHS

2
 Business Mathematics – SHS
Quarter 2, Week 6 – Module 12
Use of E-spreadsheet in the Computation of Salary and Overtime Pay

I. Introduction

Can you name any business found in your locality that uses traditional
way of computing salaries to their employees? This should include more than
ten employees. Maybe you cannot cite one. Well, it is because of the use of
technologies. Many businesses prefer to use software in computing salaries
to ease time and effort. In this module you will know how to use spread sheet
in computing salary and overtime.

The module is composed of one lesson with three learning activities:

Learning Activity # 1- Computations for Net Pay using spread sheet.

Learning Activity # 2- Computations for Net Pay showing Total Earnings
and
Total Deductions using spread sheet.
Learning Activity # 3- Computation of Overtime Pay using Spreadsheet

II. What will you learn from this Module?

After this module, you should be able to:

● Use of E-spreadsheet in the computation of salary and overtime
pay

III. Vocabulary List

This module will help you understand the following terms:

➢ Cell - a rectangular box that occurs at the intersection of a vertical

column and a horizontal row in a worksheet.

➢ Spreadsheet - a computer program that calculates numbers and

organizes information in columns and rows.

➢ Overtime Pay - additional compensation for work performed

beyond 8 hours.

3
IV. PRETEST

Answer the following questions using the figure below.

1. Using the spreadsheet this is the formula in computing for the total
earnings.
A. = SUM(B10 + B15) B. = SUM(B10:15)
C. = SUM(B10+ G13) D. = SUM(B10: B15)
2. This is the formula in computing for the total Net Pay.
A. =(B17+G17) C. =(B17: G17)
B. =(B17 – G17) D. ={(B10+B15)-G17}
3. Which is the correct formula to calculate the total deduction?
A. =SUM(G10:G13) B. =AVERAGE(G10:G13)
C. =SUM(G17) D. =AVERAGE (G17)
4. What formula is shown in cell G10 to enter the total withholding tax found in
another Sheet titled Tax?
A. =TAX”A1 C. =TAX!A1
B. =TAX=A1 D. =TAX”A1”
5. Which is the correct formula to compute for the Earnings without the
Overload pay?
A. =SUM(B10:B12)+B15 C. =SUM(B10:B12:B
B. =SUM(B10+B12+B15) 15) D. =SUM(B10:B15)

How do you find the test? Is it easy to compute using the spreadsheet
instead of using your calculator? Imagine you have your own company with
100 employees and you compute for their salaries manually! That would be
very time consuming. To save time, this module will showcase the fastest and

4
easiest way of computing salary using the E-spreadsheet. Let’s now begin the
discussion.

V. Learning Activities

Learning Activity # 1

Computations for Net Pay using Spreadsheet

Corona Corporation is new in merchandising business.

It employs more than 15 employees. Corona Corporation
will be using spreadsheet in computing the payroll of its
employees to ease in time, money, and effort.
One of the employees of Corona Corporation is Kobie
Dee. He asked for a payslip from the company since it is a requirement to
get a motorcycle.
Corona will do the following in using the E- spreadsheet:
A. To encode the data in the spreadsheet.
B. To compute for the net pay of the employees using spreadsheet.
C. To compute for the total earnings and total deductions.

To start, you need to familiarize with the spreadsheet.

 Below is a sample spreadsheet. The highlighted bar is called CELL

where the data are encoded. To read the cell, it is A1, which can be found in
column A, row 1.

Consider below sample of payslip where data of employees are encoded

in the spreadsheet. Notice that the data are encoded in any cell.

5
 To compute for the Net pay, consider only total earnings, total deductions
and net pay.
Employee Kobie Dee’ s net pay will be used as a sample to show the
computation.

 The figure above shows how net pay is computed. In order to get
the total amount of P 23,020.00 you need to follow the steps:

STEP 1: Click the cell for the net pay which is B9

STEP 2: Type “=” and click the cells that corresponds to the total earnings
B7.Press “-” and click the cell for the total deduction, which is B8, then
press ENTER.

6
  The total NET PAY is equal to P 23,020.00, derived from the total
earnings minus total deductions.

Learning Activity # 2

Computations for Net Pay showing Total Earnings

and Total Deductions using Spreadsheet

The same data will be used for this activity. The figure above shows the
computation of net pay of Kobie Dee. Now, the breakdown of total earnings
and total deductions will be shown.

 To get the total earnings, you click “=” then type “sum” followed by “(“
(then click the cell that correspond to basic pay) which is B9. Type “ : ”, then
click the cell that correspond to holiday pay, B14. Type “) “, then press
ENTER.

 Notice in the figure that the total earnings is the sum of all the
earnings, and this is also the same with the total deduction.

 To get the total deduction, click the cell that correspond to its total which
is E16, then type “= “. Type the word sum followed by “ ( “, then click the cell
that corresponds to the first amount under deduction which is E9. Type “ : “,
then click the last amount under deduction which is E12. Type “ ) “, then
finally press ENTER.

7
  Thus in order to compute for the net pay, use the formula

NET PAY = TOTAL EARNINGS - TOTAL DEDUCTIONS

 Since you already have the total earnings and total deductions, click
the cell that corresponds to Net Pay, which is G5, then press “=”. Click the
cell that correspond to total earnings, B16, press “ - “ , then click the cell that
correspond to total deductions, E16. Finally, press enter.

8
Learning Activity # 3

Compute the overtime pay using spreadsheet

There are some instances that some amount may not appear in the
payslip, such as computation for the overtime pay. This could be found in a
separate sheet that can be link in the payslip. How to do this? Let’s find out.

Rose works in an Auto-parts Manufacturing Corporation

as a production operator in Pasig. Her daily rate amounted to
P 378.00. Therefore the total basic pay is P9,828.00.
Given below is the Payslip of Rose. Locate the value of
overtime in different spreadsheet.

 Highlighted above is the overtime pay amounting to P 4,547.81.This

amount is linked from another worksheet where it is separately computed.

9
 The daily salary of Rose is P378.00. In order to compute for the hourly
rate simply divide the rate by 8 hours.
 Click the cell that corresponds to hourly rate which is cell H5, then press
“=”. Type 378/8, then press enter to get the amount of 47.25.
 Looking at the above figure, there are 30 days. Each day has number of
hours rendered, For Day 1 Rose rendered 12 hours, therefore there are four
hours of overtime computed by deducting minimum of 8 hrs worked per day
from the 12hrs actual work time by Rose.

12hrs - 8hrs = 4hrs (Overtime)

 To compute for the basic pay amounting to P 9,828.00, simply

multiply the daily rate by the total hours worked.

P 378.00 x 26 days = P 9,828.00

10
  In computing for the basic pay using the spreadsheet, click the cell H7,
type “=”, then type 378*26. Finally, press enter. This is shown in the formula
bar located at the top with fx symbol.
 The total number of days worked of 26 days is added through the
formula =sum(D5:D34). While for the overtime hours of 77, the formula
=sum(C5:C34) is used. .
Click the cell D36 then type the formula =sum(D5:D34). This is shown
on the next page.

11
  To get the total amount for the overtime pay, first, click the C36. Type the
formula in computing for the total amount of hours worked overtime:
=sum(C5:C34), then press ENTER.

12
  In the previous module, you were taught how overtime pay was
computed. This module will help you compute overtime pay using
spreadsheet by typing the formula in the CELL.

13
  As you can see, overtime pay is computed by multiplying the total
overtime hours by the hourly rate, then multiplying the product by 125%.
 Using the spreadsheet, you need to click the cell representing the
overtime pay, which is H9. Type the formula by starting with “ = ”, then click
the total overtime hours found in C36. Type the multiplication symbol “ * ”,
click the hourly rate cell, H5, type “ * ” again,then type 1.25. This is shown in
the previous figure.

Overtime Pay computation is not included in the payslip, that’s why

it has a separate spreadsheet. The amount of overtime pay is usually
linked in this spreadsheet. See the sample payslip below.

To link the amount in the payslip, you need to click the cell representing
the amount for overtime pay, which is B14. Type “ = “, then click the
spreadsheet where your computation for the overtime pay is located and click
the cell representing the total Overtime pay. Press ENTER.

14
 In the example below, the computation for the overtime pay is found in
cell H9.

Here is the separate computation of overtime, where the total

Overtime Pay of P4,547.81 is linked in the payslip.

Do you now find the use of spreadsheet easier than computing your
payroll manually?
With the use of spreadsheet, you can simply type the formula in the cell,
then the amount will be automatically computed. The only problem with the

15
use of the spreadsheet is that, if you input the wrong formula, then you will not
get the correct amount. But with the use of it, it lessens your time and effort in
doing the payroll.

VI. Practice Exercise

Practice task 1

Given the sample payslip, answer the questions below.

Write the formula in computing the missing amount using the

spreadsheet and identify which cell the given item each of the following
belongs.
A. Total Earnings D. 1st half payment
B. Total Deductions E. 2nd half payment
C. Net Pay

Practice task 2

16
 Compute for the following and give the formula using the spreadsheet.
A. Total Regular Pay C. Net Pay
B. Total Earnings D. 2nd half payment

Practice task 3

Georgia Dimagiba work as production staff. Her daily rate amounts to P

450.00. Given the spreadsheet for overtime pay, compute each of the
following and give the formula.
A. Hourly Rate B. Basic Pay c. Overtime Pay

LET’S REMEMBER

The module contains one lesson and the following points must be
remembered:

The use of spreadsheet can save time and effort than manual
computation of payroll.

17
 Cell is the small box found in the spreadsheet where data are encoded.
The formula to compute for the total amount always begins with an
equal sign “ = ”.
To compute for the total earnings and deductions, simply press “=”, then
click the upper cell that you want to add up to the last cell included in the
computation.
Net pay is the result of deducting total deductions from total earnings.
Overtime pay computation is not included in the payslip spreadsheet,
instead a separate spreadsheet is used.
The amount of overtime pay from the separate spreadsheet is linked in
the payslip spreadsheet to show the total value.
To compute for the overtime pay, multiply the total overtime hours by the
hourly rate, then multiply by 125%.

Post- Test

Christine is an employee of Hope Corporation as Purchasing Staff. Her

daily rate is P550.00. Below is a sample of the payslip and computation for
the overtime pay. Find the missing amount and show the formula using
spreadsheet.
a. Hourly rate d. Total regular pay g. 2nd half payment
b. Basic Pay e. Total earnings
c. Overtime pay f. Net Pay

18
19
 ANSWER KEY

PRE- TEST
1. D 2. B. 3. A 4. C 5. A

PRACTICE TASK 1

A. Total Earnings: =sum(B10:B12)CELL B15

B. Total Deductions: =sum(E8:E11) CELL E15
C. Net Pay =(B15-E15)CELL G4
D. 1st Half Payment =G4/2 CELL G6
nd
E. 2 Half Payment=G4/2 CELL G7

PRACTICE TASK 2

A. Total Regular Pay: =sum(B8+B9) 10,650.00

B. Total Earnings: =sum(B10:B12) 13,000.12
C. Net Pay: =(B15-E15) 12,365.82
D. 2nd Half Payment =G4/2 6,182.91

PRACTICE TASK 3

A. Hourly Rate =450/8 56.25

B. Basic Pay =450*26 11,700.00
C. Overtime =C36*H5*1.25 3,164.06

POST-TEST

A. Hourly Rate: =550/8 68.75

B. Basic pay =550*26 14,300.00
C. Overtime =C36*H5*1.25 4,554.69
D. Total Regular Pay =sum(B8+B9) 14,800.00
E. Total Earnings =sum(B10:B12) 19,753.19
F. Net Pay =(B15-E15) 19,118.89
G.2nd Half Payment =G4/2 9,559.45

REFERENCES

Lopez-Mariano, N. D. Business Mathematics 1st edition, pp. 148-152

Merriam-Webster
https://www.techonthenet.com/excel/cells/index.php

20