16. An employee receives a monthly salary of P20,0000. The following items are withheld from themonthly salary: Income tax, P2,000; SSS contribution, P800; Philhealth contribution, P300 andPag-ibig contribution, P200. The net monthly amount received by the employee is P16,700. Themonthly taxable income is:a. P16,700b. P17,000c. P18,700d.P20.000

Taxable Income is defined as the income retained to the taxpayer after deducting all allowable…

Answered: Pag-ibig contribution, P200. The net…

Pag-ibig contribution, P200. The net monthly amount received by the employee is P16,700. The monthly taxable income is: P16.700

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 16MC: An employee earns $8,000 in the first pay period. The FICA Social Security Tax rate is 6.2%, and the...

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Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.

Question

16. An employee receives a monthly salary of P20,0000. The following items are withheld from the
monthly salary: Income tax, P2,000; SSS contribution, P800; Philhealth contribution, P300 and
Pag-ibig contribution, P200. The net monthly amount received by the employee is P16,700. The
monthly taxable income is:
a. P16,700
b. P17,000
c. P18,700
d.
P20.000

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