Camille Lydell G.

Detera
11250712

FINOMAN

Reaction Paper # 3: Business Suits vs. Designers: Why architectural practice is going
down the gurgler.
no matter where you went in the world in architecture there was always an insanely stupid
divide between the creative designers and the so called business people of architecture.
-Peter Raisbeck
There is an extreme comparison between business suits and designers itself, due to the
designers lack of knowledge about the business world. We architect are sinking, and just like
the article said we are going down the gurgler. We tend to appreciate creative designers rather
than appreciating the essence of business in their profession; the more they tend to go in this
side, this divide is contributing to the demise of the profession. It prevents big practices from
integrating knowledge and going upstream; it cripples small practices because they often do not
have the business skills needed to make them sustainable.
There are a lot of advantages choosing and paying attention to the business divide:
Diversity, in our team structures, strategic positioning, innovation systems, knowledge
management processes, technology implementation and how we respond to emerging forms of
procurement. Another thing is managing cash flow, preparing marketing materials, it may sound
boring but it is important. But it is stuff that needs to be done. In larger firms, let alone any firm
for that matter, strategic thinking, marketing and branding, HR and management policies that
promote diversity and creativity are vital. And if you are in a small firm; managing these jobs and
having efficient knowledge about it is a great idea. The article stated seven considerations in
overcoming this divide:
a.
b.
c.
d.
e.
f.

Dont cut your fees just to get the job.

Have a business plan even if it is only two pages long.
Calculate charge out rates that allow for fair work hours and profit. Stick to them.
Work on your business systems.
Take the time to constantly market the value of design.
Do what Google does and dont work for half a day a week. Just think or
meditate.
g. Do some research that will help strengthen your knowledge base
This is also evident in the Philippine architectural profession a lot of architects and
upcoming architects loses the chance to uplift themselves due to other profession for example;
some may claim to design houses or interiors and convincing the client without knowing they
are not really an architect; to sum it all up architecture is made for mass production only. The
other example is for example an architect is not knowledgeable about the business world, he or
she ends up not working as an architect at all due to incompetence.
The business-creative divide and corresponding global ideology has crippled
architecture and threatens to hasten its further demise as a domain of knowledge. As a result,
the viability of architecture as a profession is increasingly at stake. But we can do something
about it; to be more knowledgeable and fight for what is ours; even if there are other professions
who claim with same offers still we must be knowledgeable between what is design fee and
design and design value and how we market ourselves.

B. Define the Following:

a. SSS
The Philippine Social Security System (SSS; Filipino: Paseguruhan ng Kapanatagang
Panlipunan) is a state-run, social insurance program in the Philippines to workers in the private
sector, wage earners as well as self-employed persons. It is implemented in accordance with
the Republic Act No.1161, better known as Social Security Act of 1954.
Government employees, meanwhile, do not contribute to SSS but have a separate programme,
the Government Service Insurance System (GSIS).

There are three programs being administered by SSS, namely:

The Social Security Program
The Medicare Program; and
The Employees' Compensation (EC) Program, which started in 1975, providing double
compensation to workers who had illness, death or accident during work-related activities. EC
benefits are granted only to members with employers other than themselves.
SSS members can make 'salary' or 'calamity' loans. Salary loans are calculated based on a
member's particular monthly salary. Calamity loans are for instances when the government has
declared a state of calamity in the area where an SSS member lives, following disasters such as
flooding and earthquakes.
Rate of Contributions to SSS
The monthly contributions are based on the compensation of members ( Please see table on
the last page). The current SSS contribution rate is 11% of the monthly salary credit not
exceeding P16,000 and this is being shared by the employer (7.37%) and the employee
(3.63%).
Self-employed and voluntary members pay the 11% of the monthly salary credit (MSC) based
on the monthly earnings declared at the time of registration.
For OFWs, the minimum monthly salary credit is pegged at P5,000.
For the non-working spouse, the contribution will be based on 50% of the working spouse?s last
posted monthly salary credit but in no case shall it be lower than P1,000.

b. PAGIBIG
Pag-IBIG is an acronym which stands for Pagtutulungan sa Kinabukasan: Ikaw, Bangko,
Industria at Gobyerno. In effect, Pag-IBIG harnesses these four sectors of our society to
provide its members with adequate housing through as effective savings scheme.
If your monthly basic salary is Php15,000 then your HDMF Contributions is Php15,000 X
.02= Php300
Note: The maximum monthly compensation used in computing the employee contributions is
currently set as Php 5,000. This means that the maximum member contribution and
employee counterpart per month are both currently Php 100
c. BIR TAXATION SCHEME
he following is required information for you to compute your income tax.
Status
Do you have any dependents and how many?
How much is your SSS/Philhealth and PagIbig contributions
Allowances and other benefits if any
Copy of the BIR Tax table
Heres an easy way on how to compute employee taxes for the month
Basic Salary: Php 15,000.00
Status: Single without dependent
Overtime Pay: Php 2,500.00
Late deduction: Php 500.00
SSS Contribution: Php 500.00
Philhealth Contribution: Php 250.00
Pag-Ibig Contribution: Php 100.00
Taxable income = Monthly Basic Pay + Overtime Pay + Holiday Pay + Night
Differential - Tardiness- Absences - SSS/Philhealth/PagIbig deductions
Php 16,150.00 = 15,000 + 2,500 -500-500-250-100
Your tax for the month is Php 1,954.25 by simply checking on this BIR Tax Table:
ftp://ftp.bir.gov.ph/webadmin1/pdf/42126AnnexC.pdf
Under S/ME look of the nearest figures with your taxable income and the nearest amount is
15,833 and the tax is Php 1,875.00 + 25% in excess of 15,833
So your tax is 15,833.00 = 1,875.00
Excess (16,150-15,833) = 317 X 25% = 79.25
Tax is ( 1,875.00 + 79.25)= Php 1954.25

d. PHILHEALTH
The Philippine Health Insurance Corporation (PhilHealth) was created in 1995 to create
a universal health coverage for the Philippines. It is a tax-exempt, government-owned
and government-controlled corporation (GOCC) of the Philippines, and is attached to the
Department of Health. It states its goal as insuring a sustainable national health
insurance program for all.In 2010, it claimed to have achieved "universal" coverage with
86% of the population, although the 2008 National Demographic Health Survey showed
that only 38 percent of respondents were aware of at least one household member being
enrolled in PhilHealth. Nevertheless, this social insurance program provides a means for
the healthy to pay for the care of the sick and for those who can afford medical care to
subsidize those who cannot. Both local and national government allocate funds to
subsidize the indigent.
PhilHealth and beneficiaries have access to a nearly comprehensive package of
services, including inpatient care, catastrophic coverage, ambulatory surgeries,
deliveries, and outpatient treatment for malaria and tuberculosis. Those identified as
indigent and OFW are also entitled to outpatient primary care.
Inpatient care includes room and board, medicines, diagnostic and other services,
professional fees and operating room services. These benefits are subject to some
limits, which differ based on the level of the health facility/hospital (level 1 to 4 hospitals
and the Ambulatory surgical centers equivalent to level 2 hospitals) and the severity of
the cause of admission (case-type A, B, C and D). Catastrophic conditions, ambulatory
surgeries including ambulatory dialysis, deliveries and outpatient malaria and TB-DOTS
care.
Except for the outpatient primary care that the poor and OFWs are entitled to via public
providers, patients have free choice of providers, both public and private.
Annual or lifetime coverage limits exist. These limits are expressed in terms of volumes
of services (e.g., days) rather than a peso coverage limit. For example, households are
eligible for 45 days of inpatient admission, sharing 45 days among all household
members. Each day of ambulatory surgery counts as a day of admission.
Providers are allowed to charge the patient the difference between the total cost of care
and what PhilHealth pays (i.e., balance billing).