question archive Using the following information: Basic pay P55,000 Allowances 10,000 Deductions: SSS, Philhealth, Pag-ibig contributions 6,000 Loan payments 5,000 Withholding tax 12,000 Compute the net pay of the employee a
Using the following information: Basic pay P55,000 Allowances 10,000 Deductions: SSS, Philhealth, Pag-ibig contributions 6,000 Loan payments 5,000 Withholding tax 12,000 Compute the net pay of the employee a
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Using the following information:
Basic pay P55,000
Allowances 10,000
Deductions:
SSS, Philhealth, Pag-ibig contributions 6,000
Loan payments 5,000
Withholding tax 12,000
Compute the net pay of the employee
a. P59,000
b. P54,000
c. P42,000
d. P32,000
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The answer is choice C ( P42,000 )
To understand why this is the answer, look at the explanation below.
Step-by-step explanation
In responding to this question, you should first have an understanding of what net pay refers to. This is the amount of pay an employee receives after deductions have been taken out of their gross pay.
In this case, the basic pay is P55,000 and allowances of P10,000. This means that the total gross pay for this employee is $65,000. This employee also has deductions made in the total amount of ( 6,000 + 5,000 + 12,000 = P23,000).
This, therefore, means that net pay is gross pay minus the total deductions. In this case ( 65,000 - 23,000 = P42,000). This is why the answer is choice C.
