3: An employer in the U.S. Virgin Islands, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $1,420 and $32,100. During the current pay period, these employees ean $3,350 and $1,700, respectively. The applicable SUTA tax rate is 4%, and the U.S. Virgin Islands SUTA threshold is $32,500. FUTA tax = $ 286.20 SUTA tax = $ 202.00 4: An employer in Durham, North Carolina, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $6,000, $22,600, and $35,800. During the current pay period, these employees earn $980, $1,600, and $1,150, respectively. The applicable SUTA tax rate is 1.2%, and the North Carolina SUTA threshold is $26,000. FUTA tax = $ SUTA tax = $ FUTA rate = 0.6% on first 7000 of an Employee's salary SUTA rate = 2.1%. Threshold = $ 16500 Answer 1) FUTA Tax = $ 1450 * 0.6% = $ 8.7 Note: FUTA is not applicable on the other individual as its annual income is more than $ 7000. SUTA Tax = ($ 1450 + $ 2000 ) * 2.1% = $ 72.45 Note: Since , the annual income ($ 6100 + $ 8800 = $ 14900) is less than the threshold , the SUTA tax is applicable on both the individuals. 1) Computing the FUTA and SUTA as follows: Current Period Taxable Income Taxable Income Current Income Remarks Employee 1 6,100 1,450 Employee 2 8,800 2,000 Total taxable income is Total 3,450 below the SUTA threshold limit. SUTA (3,450 x 2.1%) 72.45 FUTA of employee 1 (FUTA is applied on first $7000, so FUTA is not required to be paid for the 2)Computing the FUTA and SUTA as follows: Current Period Taxable Income Taxable Income Current Income Remarks Employee 1 5,500 2,200 Employee 2 12,900 $ 1,950 Total taxable income is Employee 3 $14,200 $2,400 below the SUTA Total 6,550 threshold limit. SUTA (6,550 x 2.1%) 137.55 FUTA (FUTA is applied on first $7000, so FUTA is not required to be paid for the current period 3)Computing the FUTA and SUTA as follows: Current Period Taxable Income Taxable Income Current Income Remarks Employee 1 1,420 3,350 Employee 2 32,100 $ 1,700 Total taxable income is Total 5,050 below the SUTA threshold limit. SUTA (5,050 x 4%) 202 FUTA (employee 1) (6% of 4,770) 286.2 (FUTA is applied on first $7000, so FUTA is not required to be paid for the current period so it is not applicable on employee 2)

Mr. See Pag’s is a Filipino citizen working as a sales agent in EchpiComputer Accessories Store in Las Piñas City. He earns P26,000 a month basic salary and transportation allowance of P2,000. His deductions per month include SSS P1,630, PhilHealth P350, Pag-IBIG P100 and Union Dues P50. How much is Mr. Pag’s taxable income?    Answer the questions briefly.1. Is Mr. Pag liable to pay taxes in the Philippines? Why? 2. How much is his total deductions? 3. How much is his taxable income?

How much should be the income tax withheld on compensation income? Mr. B, married, is a citizen and resident of the Philippines. He had the following data on income and expenses: Salaries, net of P7,000 SSS, Philhealth, Pagibig contributions, and labor union dues Thirteen month pay Allowances Gain on sale of asset P88,000 8,000 16,000 10,000

PURELY COMPENSATION INCOME EARNER Instructions: 1. Download BIR Forms 1700 AND 2316 Version 2018 at www.bir.gov.ph. Compute the income tax payable, if any. Relevant information: YOU, single and a Filipino citizen, and a resident of Brgy. Talipapa, Quezon City is employed by PA-MINE Corp. located in N. Reyes St., Sampaloc, Manila for the calendar period 2021. During your employment, PA-MINE Corp. was able to apply for your TIN where BIR RDO No. 032 – Manila assigned you Taxpayer Identification No. 123-456-789-0000. PA-MINE Corp.’s TIN No. is 987-654-321-0000. Additional information: Your basic salary is Php 30,000 per month In addition to your basic pay, you received the following: Holiday pay – Php 10,000 Hazard pay – Php 20,000 Overtime pay – Php 20,000 Fixed transportation allowance – Php 10,000 Cost of Living Allowance – Php 20,000 13th month pay – Php 30,000 Other benefits – Php 20,000 De minimis benefit of Php – 20,000 PA-MINE Corp. has deducted the following…