Scribd
Upload
38 views16 pages

Business Math G12 - Week9 Employee Compensation Payroll Deductions PPTX 1

This document discusses salaries and wages, including: 1. Defining compensation, salaries, wages, and income 2. Calculating pay for piece-rate, hourly, monthly and annual salaries 3. Computing overtime pay rates and examples of overtime pay calculations 4. Converting between annual, monthly, weekly and hourly salary rates 5. Identifying payroll deductions and computing net pay 6. Using graphs to illustrate components of gross and net pay

Uploaded by

Kei
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
38 views16 pages

Business Math G12 - Week9 Employee Compensation Payroll Deductions PPTX 1

This document discusses salaries and wages, including: 1. Defining compensation, salaries, wages, and income 2. Calculating pay for piece-rate, hourly, monthly and annual salaries 3. Computing overtime pay rates and examples of overtime pay calculations 4. Converting between annual, monthly, weekly and hourly salary rates 5. Identifying payroll deductions and computing net pay 6. Using graphs to illustrate components of gross and net pay

Uploaded by

Kei
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 16

BUSINESS MATH

Week 9: Salaries and Wages


Salaries and Wages:
Employess compensation
Payroll Deduction
Lesson Objectives
At the end of this lesson, the students should be able to:
1. define employee compensation;
2. differentiate salary, wage, and income;
3. solve problems related to piece-rate earners and hourly-paid earners
including overtime pay;
4. convert annual salaries to monthly, semi-monthly, and weekly salaries;
5. enumerate and define the different benefits given to an employee;
6. compute for overtime pay;
7. compute for gross earnings to include overtime pay and net earnings/pay
considering the different payroll deductions;
8. distinguish taxable from non-taxable employee benefits; and
9. use e-spread sheet in the computation of regular pay, overtime pay, gross
earnings, deductions, and net pay.
Lesson Objectives
At the end of this lesson, the students should be able to:
1. identify the different payroll deductions;
2. compute the different standard payroll deductions;
3. compute for net pay;
4. prepare a salary graph; and
5. use Excel to compute for gross earnings and net pay.
• Employee compensation refers to the renumeration given a
employees in exchange of his or her services. This can be in the form
of a wage, a salary, employee benefits including sick leave and
vacation leave, and incentives pay, which includes productivity pay,
commissions, overrides, bonus and profit sharing.
• Basic Pay in an employee’s compensation package refers to the wages
or salaries that they get.
Wages
refer to the earnings received by a worker on a piece rate, hourly rate,
or daily rate

Piece Rate
Tammy is paid on a per piece basis at the rate of ₱1.20 per piece. If she
finishes 360 pieces for a week, how much is her total earnings?
Total earnings = Quantity Rate
= 360 ₱1.20
= ₱432

Hourly Rate
If an employee worked for 40 hours during the week and his rate is ₱10
per hour, his wage is:
40 hours ₱10/hour = ₱400.
Consumption of Overtime Pay
Assuming that the minimum daily wage rate is ₱340, how much is the overtime
rate per hour?

On Ordinary Day
Regular hourly rate = Daily wage rate 8 hours
= ₱340 8 hours = ₱42.50 per hour
Overtime rate = Regular rate + 25% of Regular rate
= ₱42.50 + (25% of ₱ 42.50)
= ₱42.50 + ₱10.625
= ₱53.125
Consumption of Overtime Pay
On Rest Day and Special Day
The hourly rate on rest day and special day is 130% of the regular rates.

Hourly rate = 130% of Regular hourly rate


= 130% × ₱42.50 = ₱55.25
Overtime rate = Rate on rest day + 30% of rate on rest day
= ₱55.25 + (30% of ₱ 55.25)
= ₱55.25 + ₱16.575
= ₱71.825
Consumption of Overtime Pay
On Rest Day which Falls on a Special Day

Hourly rate = 150% of Regular hourly rate


= 150% × ₱42.50 = ₱63.75
Overtime rate = Rate on rest day + 30% of rate on rest day
= ₱63.75 + (30% of ₱63.75)
= ₱63.75 + ₱19.125
= ₱82.875
Consumption of Overtime Pay
On a Regular Holiday

Hourly rate = 200% of Regular hourly rate


= 200% × ₱42.50 = ₱85
Overtime rate = Rate on rest day + 30% of rate on reg holiday
= ₱85 + (30% of ₱85)
= ₱85 + ₱25.50
= ₱110.50
Consumption of Overtime Pay
On a Rest Day which Falls on a Regular Holiday

Hourly rate = 260% of Regular hourly rate


= 260% × ₱42.50 = ₱110.50
Overtime rate = Rate on rest day + 30% of rate on reg holiday
= ₱110.50 + (30% of ₱110.50)
= ₱110.50 + ₱33.15
= ₱143.65
Salaryrefer to the earnings of employees paid on a monthly or annual basis
Let us study the conversions, assuming an annual salary of ₱72,000:
a. Monthly
b. Semi-monthly
c. Weekly
d. Bi-weekly

If week load is 40 hours: Hourly rate 34.62


If week load is 48 hours: Hourly rate 28.85
Income
is a broader term than waves or salary

Janine is a stockholder of the Wisdom Corporation. For the


current year, the corporation declared a 10% cash dividend to
stockholders. Janine owns 1,000 shares of the company’s 10 par
value shares.

Dividend income = No of shares Par value Dividend rate


= 1,000 par value 10%
= 1,000
Net Pay
Joy receives a basic pay of ₱8,500 a month and a 1% commission on her sales.
She sold ₱65,000 for the month. Her deductions are: 4% for SSS based on her
basic monthly pay; ₱100 for PhilHealth; Pag-IBIG, 2%; and 10% Withholding
Tax based on gross earnings.

Gross earnings = Monthly pay + Commission


= ₱8,500 + (1% ₱65,000) = ₱9,150
Deductions: SSS = 4% ₱8,500 = ₱340
PhilHealth = ₱100
Pag-IBIG = 2% ₱9,150 = ₱183
Withholding tax = 10% ₱9,150 = ₱915
Net Pay = Gross Earnings – Deductions
= ₱9,150 – (₱340 + ₱100 + ₱183 + ₱915) = ₱7,612
Salary Graph
Gross earnings ₱9,150 100%
SSS ₱340 4%
PhilHealth ₱100 1% ₱1,538 17%
Pag-IBIG ₱183 2%
Witholding tax ₱915 10%
Net pay ₱7,612 83%

PhilHealth
Pag-IBIG
W Tax
Net Pay
Exercises
1. Mia was able to finish 435 pieces of their product. Find her
gross earnings using the piece-rate plan: ₱0.95 for the first
100, ₱1.2 for the next 200, ₱1.4 for the rest.
2. Ana’s regular daily rate is ₱420. If she works 11 and a half
hours on a regular day, how much would she be paid?
3. Mike receives a monthly salary of ₱20,000. Compute for his
annual, weekly, semi-monthly, and hourly rate for 40-hour
week salary.
4. Ria has a basic monthly pay of ₱20,000. She pays 9% for
Withholding tax , ₱500 for PhilHealth, 4.5% for SSS, and 2%
for Pag-IBIG. Compute for her “take home” pay.

You might also like