I would like to ask some questions and hoping to be answered in your most convenient way and time. Some of these are as follows:
1.) I had an employee with the salary of P15,000.00 a month. For one month, he just worked for 10 days. How can we calculate his salary basing on the monthly salary? Should we calculate it like monthly salary/total days in a month*days worked(P15,000.00/30*10)? What is the correct approach on how to do this?
2.) What if my employee will resign from his job on June 15, how can I calculate his monthly withholding tax? Annual withholding tax?
3.) Based on the Annual calculation for withholding tax, what if my employee will change her status as of June 5(next month) from single to married, how can I calculate his annual withholding tax in which she was single for the past 5 months and soon to change her status to married the next month? What is the correct approach on how to calculate her withholding tax annually? If you could give me the logical formula on how to calculate this, it would be a great help. And, when should be the start of the effectivity of her new status if she’ll be married already?
4.) How can we calculate the annual withholding tax of a certain employee with his previous employer? For example, I have a new hired employee and he’s working with me since May 2. For the past 4 months, he was working with different employers. How can I calculate his withholding tax including his computed withholding tax with his previous employers?
5.) Lastly, what is really the formula for in calculating the taxable income? withholding tax? Are the formulas provided below the right one?
Taxable Income = [Gross (Basic)Monthly Income+ Overtime Pay+Holiday Pay+Night Differential] - (minus) [Tardiness Deduction+Allowances+SSS Contribution+Philhealth Contribution,HDMF Contribution]
Withholding Tax = ( ([Taxable Income] - [Bracket or Exemption] ) x [%over] ) + [Bracket Tax or Base Tax]
6.) An employee has a basic salary of P10,000.00 a month. Since we have this 13th month pay which has the annual ceiling of P30,000.00, is it allowed to pay directly the P30,000.00 as his monthly salary instead of giving an employee his basic salary which is P10,000.00?
7.) What if out of P30,000.00 annual ceiling, we only give a total benefits including the 13th month pay of P20,000.00. So, we still have P10,000.00 left. Is it allowed to use the P10,000.00 for the overtime, benefits and other compensation to make it tax-free as well?
8.) What are really exemptions for withholding tax?
9.) What are the considerations for a certain employee to be called a Minimum wage earner? How much exactly is the current Statutory Minimum wage(SMW)?
10.)Where should we base the certain minimum wage? Is there also a monthly minimum wage aside from daily minimum wage?