GIVEN: Monthly RATE(Refer to computations) Night

EMP Salary SCHEDULE HOURLY DAILY Differential

X 20,000 6:00AM 2:00PM M-F only 115.38 923.08 0
Y 15,000 3:00PM 11:00PM M-F only 86.54 692.30 190.38
Z 30,000 12:00MN 8:00AM M-F only 173.08 1,384.64 2,284.66

SOLUTION:
1. Salaries expense To record the monthly payroll 67,475.04
Witholding tax payable 2,290.33
SSS payable 2,700.00
PH payable 2,600.00
HDMF payable 600.00
Cash in bank 59,284.71

2. Employee benefits To record ER contribution 8,390.00

SSS payable 5,190.00
PH payable 2,600.00
HDMF payable 600.00

3. Witholding tax payable Remittance to government agencies 2,290.33

SSS payable 7,890.00
PH payable 5,200.00
HDMF payable 1,200.00
Cash in bank 16,580.33

4. COMPUTATIONS 6-2pm 3-11pm 12-8am

2022 December 2022 December

X Y Z X Y Z
01 Th 8 8 8 16 Fr 8 8 8
02 Fr 8 8 8 17 Sat
03 Sat 18 Sun
04 Sun 19 Mon 8 8 8
05 Mon 8 8 8 20 Tue 8 8 8
06 Tue 8 8 8 21 Wed 8 8 8
07 Wed 8 8 8 22 Th 8 8 8
08 Th 8 8 8 23 Fr 8 8 8
09 Fr 8 8 8 24 Sat
10 Sat 25 Sun
11 Sun 26 Mon 8 8 8
12 Mon 8 8 8 27 Tue 8 8 8
13 Tue 8 8 8 28 Wed 8 8 8
14 Wed 8 8 8 29 Th 8 8 8
15 Th 8 8 8 30 Fr 8 8 8
31 Sat
88 88 88 88 88 88

Total Hours 176 176 176 Legend: YELLOW - HOLIDAYS

 22 days 22 days 22 days
work work work

Analysis and Computations:

1. X Since X is scheduled from 6am to 2pm
Gross Compensation is only the Monthly Salary of P 20,000

No night differential, since 6am to 2pm only

But, since, Dec 8 and Dec. 30 is a holiday, and since, X went to work as
scheduled, no additional pay is needed

COMPUTATIONS: X
Hourly rate Multiply the hours per week by the number of weeks in a year (52)
Divide this number from the annual salary
Php 115.385 = 240,000 /2,080 (40hours x 52 weeks)

Daily pay Hourly Pay x Hours Per Day

Php 923.08 = 115.385 x 8 hours

Summary: Regular pay Php 20,000.00 X

Overtime -
Night differential -
Holiday pay - Dec. 8 and 30 special holiday
GROSS PAY Php 20,000.00 He is scheduled to work

2. Y Since Y is scheduled from 3 to 11pm

On top of the 8 hour duty
Y is entitled to a NIGHT DIFERENTIAL

But, since, Dec 8 and Dec. 30 is a holiday, and since, X went to work as
scheduled, no additional pay is needed

COMPUTATIONS: Y
Hourly rate Multiply the hours per week by the number of weeks in a year (52)
Divide this number from the annual salary

Php 86.538 = 180,000 /2,080 (40hours x 52 weeks)

Daily pay Hourly Pay x Hours Per Day

Php 692.304 = 86.538 x 8 hours

Meaning: Every employee is entitled to a Night Differential of Night Shift pay of not less than
10% of his regular wage for each hour of work performed between 10pm and 6am

Formula: = Ordinary Day night differential = Hourly rate x 10% x no. of hours worked
1 hour per day x total no. of days = 22days

190.385 = 86.538 x 10% x 22days

Summary: Regular pay Php 15,000.00 Y
Overtime -
Night differential 190.38
Holiday pay - Dec. 8 and 30 special holiday
GROSS PAY Php 15,190.38 He is scheduled to work

3. Z Since Z is scheduled from 12pm to 6am the next day

On top of the 8 hour duty
Z is entitled to a NIGHT DIFERENTIAL

But, since, Dec 8 and Dec. 30 is a holiday, and since, Z went to work as
scheduled, no additional pay is needed

COMPUTATIONS: Z
Hourly rate Multiply the hours per week by the number of weeks in a year (52)
Divide this number from the annual salary
Php 173.08 = 360,000 /2,080 (40hours x 52 weeks)

Daily pay Hourly Pay x Hours Per Day

Php 1,384.64 = 173.08 x 8 hours

Meaning: Every employee is entitled to a Night Differential of Night Shift pay of not less than
10% of his regular wage for each hour of work performed between 10pm and 6am

Formula: = Ordinary Day night differential = Hourly rate x 10% x no. of hours worked
12pm to 8am next day is equals to: 6 hours daily

132 6 hours x 22 days

2,284.66 = 173.08 x 10% x 132hours

Summary: Regular pay Php 30,000.00 Z

Overtime -
Night differential 2,284.66
Holiday pay - Dec. 8 and 30 special holiday
GROSS PAY Php 32,284.66 He is scheduled to work
JOURNAL ENTRIES, Payroll and Computations:
DEBIT CREDIT
1. Salaries expense To record the monthly payroll 67,475.04
Witholding tax payable 2,290.33
SSS payable 2,700.00
PH payable 2,600.00
HDMF payable 600.00
Cash in bank 59,284.71

2. Employee benefits To record ER contribution 8,390.00

SSS payable 5,190.00
PH payable 2,600.00
HDMF payable 600.00

3. Witholding tax payable Remittance to government agencies 2,290.33

SSS payable 7,890.00
PH payable 5,200.00
HDMF payable 1,200.00
Cash in bank 16,580.33

Regular DEDUCTIONS
EMPLOYEE Monthly OT ND Others GROSS With SSS PH HDMF NET SIGNATURE
TOTAL
Pay Tax Cont Cont Cont PAY

X 20,000 - - 20,000.00 - 900.00 800.00 200.00 1,900.00 18,100.00 Signed

Y 15,000 - 190.38 - 15,190.38 - 675.00 600.00 200.00 1,475.00 13,715.38 Signed

Z 30,000 - 2,284.66 - 32,284.66 2,290.33 1,125.00 1,200.00 200.00 4,815.33 27,469.32 Signed
TOTALS 65,000 - 2,475.04 - 67,475.04 2,290.33 2,700.00 2,600.00 600.00 8,190.33 59,284.71
Signed

Supporting Schedule:

Basis: 32,284.66 Monthly salaries Monthly salaries Monthly salaries

Witholding Tax SSS Contributions Ph Contributions HDMF Contributions
 EE ER EE ER EE ER EE ER

X 0 0 900.00 1,730.00 800.00 800.00 200.00 200.00

Y 0 0 675.00 1,305.00 600.00 600.00 200.00 200.00

Z 2,290.33 0 1,125.00 2,155.00 1,200.00 1,200.00 200.00 200.00

2,290.33 2,700.00 5,190.00 2,600.00 2,600.00 600.00 600.00

Witholding Tax: Z General Rule: 15,000 2% 300

32,284.66 20,000 2% 400
20,833.00 30,000 2% 600
on 11,451.66 Option: Employee can pay P 200 per month
x 20% 2,290.33 May shoulder the ER contribution
as well