question archive Miranda is an employee of XYZ Corporation, a private enterprise
Miranda is an employee of XYZ Corporation, a private enterprise
Subject:LawPrice:9.82 Bought3
Miranda is an employee of XYZ Corporation, a private enterprise. The following summarizes the benefits of Miranda for the current year:
Company anniversary gift P10,000 Rice subsidy 35,000 Laundry allowance 6,000 Uniform allowance 8,000 Christmas gift 5,000 13" month pay 60,000 CBA incentive 10,000 14" month pay 30,000 Monetized unused sick leave (10 days x P2,000) 20,000 Monetized unused vacation leave (5 days x P2,000) 10,000
1. Compute the total non-taxable de minimis benefits
P84,000
P68,600
P63,600
P58,600
2. Compute the taxable 13th month pay and other benefits
a. P135,400
b. P104,000
c. P45,400
d. P25,400
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Given facts:
Miranda is an employee of XYZ Corporation, a private enterprise. The following summarizes the benefits of Miranda for the current year:
Company anniversary gift P10,000
Rice subsidy 35,000
Laundry allowance 6,000
Uniform allowance 8,000
Christmas gift 5,000
13th month pay 60,000
CBA incentive 10,000
14th month pay 30,000
Monetized unused sick leave (10 days x P2,000) 20,000
Monetized unused vacation leave (5 days x P2,000) 10,000
1. Compute the total non-taxable de minimis benefits
Answer: P58,600
P84,000
P68,600
P63,600
P58,600
Rice subsidy 24,000
Laundry allowance 3,600
Uniform allowance 6,000
Christmas gift and Company anniversary gift 5,000
CBA incentive 10,000
Monetized unused vacation leave (5 days x P2,000) 10,000
=Total non-taxable de minimis benefits P58,600
Note:
*For rice subsidy, the maximum limit is P2,000 per month. (2,000 x 12 months= P24,000) ;
*For laundry allowance, the maximum limit is P300 per month. (P300 x 12months= P3,600) ;
*For uniform allowance, the maximum limit is P6,000 per annum.
*CBA incentives maximum limit is P10,000.
*For gifts given during Christmas and major anniversary celebrations, the maximum limit is P5,000 per annum.
*For Monetized unused sick leave, regardless of number of days are NOT exempt.
*For Monetized unused vacation leave, the maximum limit is 10 days to be exempt.
2. Compute the taxable 13th month pay and other benefits
Answer: c. P45,400
a. P135,400
b. P104,000
c. P45,400
d. P25,400
Rice subsidy 11,000
Laundry allowance 2,400
Uniform allowance 2,000
Christmas gift and Company anniversary gift 10,000
Monetized unused sick leave (10 days x P2,000) 20,000
=Taxable 13th month pay and other benefits P45,400
Note:
*13th month pay and other benefits not exceeding P90,000 are exempt from tax. Thus, 13th month pay of 60,000 plus 14th month pay of 30,000 equals to P90,000 are exempt from tax.
*For rice subsidy, the maximum limit is P2,000 per month. (2,000 x 12 months= P24,000) ; 35,000- 24,000= P11,000 taxable
*For laundry allowance, the maximum limit is P300 per month. (P300 x 12months= P3,600) ; 6,000-3600= P2,400 taxable
*For uniform allowance, the maximum limit is P6,000 per annum. (8,000- 6,000= P2,000 taxable)
*CBA incentives maximum limit is P10,000 to be exempt.
*For gifts given during Christmas and major anniversary celebrations, the maximum limit is P5,000 per annum.
P10,000 + 5,000= P15,000- P5,000= P10,000 taxable
*For Monetized unused sick leave, regardless of number of days are NOT exempt.
*For Monetized unused vacation leave, the maximum limit is 10 days to be exempt.
*Any de minimis benefits in excess of the limits are TAXABLE BENEFITS.
Step-by-step explanation
1. Compute the total non-taxable de minimis benefits
Answer: P58,600
Rice subsidy 24,000
Laundry allowance 3,600
Uniform allowance 6,000
Christmas gift and Company anniversary gift 5,000
CBA incentive 10,000
Monetized unused vacation leave (5 days x P2,000) 10,000
=Total non-taxable de minimis benefits P58,600
Note:
*For rice subsidy, the maximum limit is P2,000 per month. (2,000 x 12 months= P24,000) ;
*For laundry allowance, the maximum limit is P300 per month. (P300 x 12months= P3,600) ;
*For uniform allowance, the maximum limit is P6,000 per annum.
*CBA incentives maximum limit is P10,000.
*For gifts given during Christmas and major anniversary celebrations, the maximum limit is P5,000 per annum.
*For Monetized unused sick leave, regardless of number of days are NOT exempt.
*For Monetized unused vacation leave, the maximum limit is 10 days to be exempt.
2. Compute the taxable 13th month pay and other benefits
Answer: c. P45,400
Rice subsidy 11,000
Laundry allowance 2,400
Uniform allowance 2,000
Christmas gift and Company anniversary gift 10,000
Monetized unused sick leave (10 days x P2,000) 20,000
=Taxable 13th month pay and other benefits P45,400
Note:
*13th month pay and other benefits not exceeding P90,000 are exempt from tax. Thus, 13th month pay of 60,000 plus 14th month pay of 30,000 equals to P90,000 are exempt from tax.
*For rice subsidy, the maximum limit is P2,000 per month. (2,000 x 12 months= P24,000) ; 35,000- 24,000= P11,000 taxable
*For laundry allowance, the maximum limit is P300 per month. (P300 x 12months= P3,600) ; 6,000-3600= P2,400 taxable
*For uniform allowance, the maximum limit is P6,000 per annum. (8,000- 6,000= P2,000 taxable)
*CBA incentives maximum limit is P10,000 to be exempt.
*For gifts given during Christmas and major anniversary celebrations, the maximum limit is P5,000 per annum.
P10,000 + 5,000= P15,000- P5,000= P10,000 taxable
*For Monetized unused sick leave, regardless of number of days are NOT exempt.
*For Monetized unused vacation leave, the maximum limit is 10 days to be exempt.
*Any de minimis benefits in excess of the limits are TAXABLE BENEFITS.
