COMPENSATION INCOME

Compute the Taxable Compensation Income

• Manager
• Rank and File

PROBLEM:

In 2019, the following employees received their compensation and benefits from their employer as follows: Lord Velasco Peter Cayetano Income (manager) (rank and file) Basic compensation income P 900,000 P 540,000 13th month pay 75,000 45,000 Transportation allowance (P3,000 per month) 36,000 Fees in a civic club 5,000 Midyear bonus 30,000 22,500 Productivity incentive pay 10,000 5,000 Christmas bonus / gift 25,000 10,000 Medical allowance to dependents 2,000 Uniform allowance 15,000 7,500 Actual medical allowance 10,000 15,000 Rice subsidy 24,000 18,000 Monetized vacation leave for 12 days 24,000