MARY JOY P.

JUNIO, CPA Notre Dame of Midsayap College Midsayap, Cotabato

 Are income taxes that are

temporarily based on estimate. The exact amount of taxable salary would only be determined at the end of the year when the last pay for the year is computed and paid.

Gross salary for the pay period x no. of paydays xx Less: Personal exemptions xx Health insurance paid xx xx Estimated net taxable income xx x Applicable tax rate % Estimated income tax for the year xxx Divided by the number of pay period xxx Estimated withholding tax for the payday xxx

 Basic Salary per month

Overtime and holiday pay Gross Taxable Income

P18,000 7,000 25,000

Less: Deductions

Absences and tardiness P1,200.00 SSS, employees share 400.00 Philhealth 93.75 Pag-ibig 100.00 Union dues 360.00 Withholding taxes 4,166.67

Net take home pay

6,320.42 P18,679.58

 Estimated salary for the year

(P25,000 x 12) Less: Personal exemption Net taxable income

Annual income tax P50,000 Divided by the number of months 12 Withhoding tax for the month P4,166.67

P300,000 50,000 250,000