Module 5: Payroll Accounting and Promissory Notes

Question 1

True or False: Businesses are legally required to pay earnings as specified in an employment contract

Answer 1

True

Question 2

True or False: Employment contracts/matters are enforced by the Labor Code and regulated by DOLE

Answer 2

True

Question 3

What is the compensation to employees on a daily/hourly basis?

Answer 3

Wages

Question 4

What is the compensation to employees on a fixed monthly basis?

Answer 4

Salary

Question 5

This is performed by businesses to pay wages and salaries on a daily, weekly, bi-monthly, or monthly basis.

Answer 5

Payroll Accounting

Question 6

This pertains to the gross pay or earnings of an employee.

Answer 6

Basic Pay

Question 7

This pertains to the deduction from an employee’s basic pay or taxable earnings.

Answer 7

Withholding Taxes Payable

Question 8

This is the difference between basic pay and total deductions; take-home pay.

Answer 8

Net Pay

Question 9

Payroll information of all employees for the pay period containing their name, basic pay, deductions, and net pay,

Answer 9

Payroll Sheet

Question 10

Payroll information of a particular employee for the pay period

Answer 10

Pay Slip

Question 11

Types of Basic Pay Deductions

Answer 11

Social Security System - employee share (SSS Premiums Payable)
- employer share (SSS Premiums Expense)

PAG-IBIG or Home Development Fund: employee share (PAG-IBIG Contributions Payable)
- employer share (PAG-IBIG Contributions Expense)

Philhealth: employee share (Philhealth Contributions Payable)
- employer share (Philhealth Contribution Expense)