ABM 309 QUIZ 3 REVIEWER

Question 1

any amount derived from this is referred to as the gross income. Normally the gross pay is the regular or basic pay added to overtime and or holiday pay

Answer 1

gross income

Question 2

any member in the working class is normally paid these in exchange of the work rendered or services done to his or her employer.

Answer 2

gross and net income

Question 3

basis of the computation of the mandatory deductions.

Answer 3

Basic pay or Salary

Question 4

it is the pay after all deductions have been done on the basic pay

Answer 4

net pay

Question 5

gross pay formula

Answer 5

Gross pay = Monthly basic salary + Overtime Pay

Question 6

• where we base withholding tax.
• Income that is subjected to tax deduction

Answer 6

Taxable Income

Question 7

taxable income formula

Answer 7

Taxable income = gross pay – total deductions
or
Taxable income = monthly basic salary + overtime pay + holiday pay + night shift differential – tardiness + absences + SSS contribution + Pagibig contri + philhealth contri

Question 8

net income formula

Answer 8

Net income = taxable income – withholding tax

Question 9

withholding tax formula

Answer 9

taxable income x whatever is in the conversion table

Question 10

withholding tax conversion table: 20,833 and below

Answer 10

0

Question 11

withholding tax conversion table: 20,833 - 33,332

Answer 11

x 15%

Question 12

withholding tax conversion table: 33,333 - 66,666

Answer 12

x 20% + 1,875

Question 13

withholding tax conversion table: 66,667 - 166,666

Answer 13

x 25% + 8,541.80

Question 14

withholding tax conversion table: 166,667 - 666,666

Answer 14

x 30% + 33,541.80

Question 15

withholding tax conversion table: 666,667 and above

Answer 15

x 35% + 183,541.80