Basic Cooking Lessons With My Parents

My parents are my mentors with regards to the preparation of foods and services. We siblings mentored us when we were still young. Helping them in every things that we can do in their small time business eating place.

They trained me through basic cooking lessons and preparations. I believe that I have to start from the basics. To learn from small things and applying them in every related activities. 

When I am well trained, time will come that I will be handling big things. I have just to wait the right time.

Uniform Allowance for the Year 2015

Last month, the officers and employees of the Company where I work with have received a cash as uniform allowance for the year 2015.

It was a blessing and thankful for the generosity of the Company. This kind of generosity will serve as a tool of motivation for the officers and employees to love and value their office works consistently and progressively. 

Computation of Withholding Tax on Compensation and Year-End Adjustment

In relation to my previous blogs about the computations of SS & EC Contributions, Philhealth Contributions and Pag-IBIG Contributions, let us apply it in the Computation of Withholding Tax on Compensation and Year-End Adjustment:

ILLUSTRATIONS:

Assuming that Employee A (Husband) is married to Employee B (Wife) with a Monthly Basic Salary (Net of Absences, Late) amounting to Php.18,000.00, with two (2) Qualified Dependent Child (QDC).

Employee A opt to contribute Monthly Pag-IBIG Contribution of P900.00.

The Monthly Withholding Tax on Compensation is computed as follows:

Step 1. Determine the Gross Taxable Compensation Income (Net of SSS, PHIC & Pag-IBIG)

Step 2. Determine the Mandatory Employee (EE) SSS, PHILHEALTH, Pag-IBIG Contribution and UNION Dues (if applicable).

Employee (EE) SSS Contribution (Monthly) – P581.30

Employee (EE) Philhealth Contribution (Monthly) – P225.00

Employee (EE) Pag-IBIG Contribution Monthly) – P100.00

Step 3. Determine the Exemption Status and Number of Qualified dependents of the taxpayer (if any).

Personal Exemptions: P50,000 regardless of status.

Additional Exemption: P25,000 for every qualified dependent child but not to exceed four (4) dependents

Step 4. Computation of Withholding Tax using the Revised Withholding Tax Tables Effective January 1, 2009.

SEMI-MONTHLY:

Use Table B for Single/Married Employees with Qualified Dependent Children (QDC)

Taxable Compensation Income Regular:

Basic Salary (Net of Late/Absences)                                                                                        9,000.00

Overtime Pay                                                                                                                                0.00

Others                                                                                                                                          0.00

                Total Taxable Compensation Income                                                                                  9,000.00

Non-taxable/Exempt Compensation Income:

                Basic Salary/Statutory Minimum Wage Minimum Wage Earner (MWE)                                               0.00

                Overtime Pay (MWE)                                                                                                                     0.00

                SSS, GSIS, PHIC & Pag-IBIG Contributions, & Union Dues (Employee Share Only)

                                SSS                                                                                 P290.65

                                PHIC                                                                              P112.50

                              Pag-IBIG                                                                          P  50.00                               453.15

                Others                                                                                                                                          0.00

                Total Non-taxable/Exempt Compensation Income                                                                453.15

Gross Compensation Income                                                                                                               9,453.15

Less:      Total Non-taxable/Exempt Compensation Income                                                                  453.15

Gross Taxable Compensation Income (Net of SSS, PHIC & Pag-IBIG)                                                  9,000.00

Less:      (See Withholding Tax Table: Semi-monthly– Column 5, B.2)                                                        7,083.00

Excess/Difference                                                                                                                                 1,917.00

Multiply by:                                                                                                                                                  20%

Withholding Tax of Excess                                                                                                                          383.40

Plus:      (See Withholding Table: Semi-monthly – Column 5 Row 1)                                                              354.17

Total Withholding Tax on Compensation – Semi-monthly                                                                      737.57

ANNUALIZED COMPUTATION OF WITHHOLDING ON COMPENSATION

Taxable Compensation Income Regular:

Basic Salary (Net of Late/Absences) – January 1 to December 31 (18,000 X 12)                      216,000.00

Overtime Pay                                                                                                                              0.00

Others                                                                                                                                         0.00

                Total Taxable Compensation Income                                                                              216,000.00

Non-taxable/Exempt Compensation Income:

                Basic Salary/Statutory Minimum Wage Minimum Wage Earner (MWE)                                           0.00

                Overtime Pay (MWE)                                                                                                                    0.00

                SSS, GSIS, PHIC & Pag-IBIG Contributions, & Union Dues (Employee Share Only)

                                SSS (581.30 x 12 mos.)                                        6,975.60

                                PHIC (225.00 x 12 mos.)                                      2,700.00

                                Pag-IBIG (100.00 x 12 mos.)                                1,200.00                                 10,875.60

                13^th Month Pay (18,000.00 x 12/12)                                                                                   18,000.00                         
                Others                                                                                                                                            0.00

                Total Non-taxable/Exempt Compensation Income                                                   28,875.60

Gross Compensation Income (216,000.00 + 28,875.60)                                                          244,875.60

Less:      Total Non-taxable/Exempt Compensation Income                                                    28,875.60

Gross Taxable Compensation Income                                                                                      216,000.00

Less:      Total Exemptions

                                Personal Exemption                                     50,000.00

                                Additional Exemptions (25,000.00 x 2)       50,000.00                                100,000.00

Less:      Premium Paid on Health and/or Hospital Insurance                                                                 0.00

Net Taxable Compensation Income                                                                        116,000.00          

Tax Due: Excess (116,000.00 – 70,000.00) x 20%                                                                   9,200.00

Plus:                                                                                                                                            8,500.00

Total Tax Due                                                                                                                          17,700.00

Less: Taxes Withheld (January 1 to December 15) – (1,475.14 x 11 mos. + 737.57)        16,964.11

Amount of Tax to be withheld on December 16 -31                                       735.89          

Please refer http://www.bir.gov.ph/images/bir_files/old_files/pdf/42126AnnexC.pdf of the Revised Withholding Tax Table Effective January 1, 2009 and http://www.bir.gov.ph/index.php/bir-forms/certificates.html#c2316 (BIR Form No. 2316) - Certificate of Payment/Tax Withheld

                                                                 

Coverage and Computation of Pag-IBIG Monthly Contributions

All employees who are or obligated to be covered by the Social Security System (SSS), if that actual membership in the SSS shall not be a condition prior to the mandatory coverage in the Fund. It shall include, but are not limited to:

1. A private employee, whether permanent, temporary, or provisional who is not over sixty (60) years old;

2. A household helper earning at least P1,000.00 a month. A household helper is any person who renders domestic services exclusively to a household such as a driver, gardener,  cook, governess, and other similar occupations;

3. A Filipino seafarer upon the signing of the standard contract of employment between the seafarer and the manning agency, which together with the foreign ship owner, acts as the employer;

4. A self-employed person regardless of trade, business or occupation, with an income of at least P1,000.00 a month and not over sixty (60) years old;

5. An expatriate who is not more than sixty (60) years old and is compulsorily covered by the Social Security System (SSS), regardless of citizenship, nature and duration of employment, and the manner by which the compensation is paid. In the absence of an explicit exemption from SSS coverage, the said expatriate, upon assumption of office, shall be covered by the Fund. 

An expatriate shall refer to a citizen of another country who is living and working in the Philippines.

6. All employees who are subject to mandatory coverage by the Government Service Insurance System (GSIS), regardless of their status of appointment, including members of the judiciary and constitutional commissions;

7. Uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police;

Filipinos employed by foreign-based employers, whether they are deployed here or abroad or a combination thereof.

Based on IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9679 OR THE “HOME DEVELOPMENT MUTUAL FUND LAW OF 2009”, OTHEWISE KNOWN AS Pag-IBIG (Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industriya at Gobyerno) Fund” of RULE VI CONTRIBUTIONS stated the following:

Section 1. Rate of Contributions. Covered employees and employers shall contribute to the Fund based on the monthly compensation of covered employees as follows:

Employees earning not more than One thousand five hundred pesos (P1,500.00) per month – one percent (1%).

Employees earning more than One thousand five hundred pesos (P1,500.00) per month – two percent (2%).

All employers – two percent (2%) of the monthly compensation of all covered employees.

The maximum monthly compensation to be used in computing employee and employer contributions shall not be more than Five thousand pesos (P5,000.00); Provided, that this maximum and the contribution rates may be fixed from time to time by the Board through rules and regulations adopted by it, taking into consideration actuarial calculations and rates of benefits. Provided further, that the foregoing rates shall likewise be the same for the self-employed and voluntary members.

A member may, however, be allowed to contribute more than what is required herein should he or she so desires. The employer, however, shall only be mandated to contribute what is required under there Rules unless the employer agrees to match the member’s increased contribution.

Notwithstanding any contract to the contrary, an employer shall not deduct, directly or indirectly, from the compensation of its employees covered by the Fund, or otherwise recover from them, the employer’s contribution with respect to such employees.

ILLUSTRATIONS:

Assuming that an Employee is receiving a Monthly Basic Salary or Earnings (Net of Absences, Late, Overtime) amounting to Php.18,000.00, the Employer-Employee Pag-IBIG Total Monthly Contributions is with details as follows:

TOTAL ER & EE CONTRIBUTIONS:

Employer (ER) Contribution (Contribution of the Employer): 100.00

Employee (EE) Contribution (Deduction to Employee Payroll): 100.00

TOTAL MONTHLY PAG-IBIG CONTRIBUTIONS: 200.00

NOTE: The maximum monthly compensation to be used in computing employee and employer contributions shall not be more than Five thousand pesos (P5,000.00). 

P5,000.00 x 2% = P100.00

Please refer http://www.pagibigfund.gov.ph/ for updates and other concerns related to this.

International Cuisines at the Food Club

Just recently attended a great dinner with bloggers at the Food Club in Pasay City. It was a great experienced and an opportunity to dine with their international cuisines at their pleasant ambiance.

Below are the photos of some of their international cuisines:

Visit and like their Facebook Fan Page for updates and promos: www.facebook.com/thefoodclubph.

Other social media site: Twitter: @thefoodclubph and Google: +Thefoodclub Mla 

The restaurant will only accept reservations in times between 10:30 - 11:30 for lunch and 05:30 - 06:30 for dinner. 

Besides, holding time would be until 11:30 only for lunch and 06:30 only for dinner. Guest arriving beyond the reservation holding time will be wait-listed. 

Computation of Philhealth Contributions

Premium Contribution Table

Salary          Salary                Salary        Total Monthly

Bracket       Range                 Base            Premium          Employee Share* Employer Share    

  

1 8,999.99** and below  8,000.00         200.00              100.00 100.00   

2 9,000.00 - 9,999.99   9,000.00   225.00              112.50 112.50   

3 10,000.00 - 10,999.99 10,000.00 250.00              125.00 125.00   

4 11,000.00 - 11,999.99 11,000.00 275.00              137.50 137.50   

5 12,000.00 - 12,999.99 12,000.00 300.00              150.00 150.00   

6 13,000.00 - 13,999.99 13,000.00 325.00              162.50 162.50   

7 14,000.00 - 14,999.99 14,000.00 350.00              175.00 175.00   

8 15,000.00 - 15,999.99 15,000.00 375.00              187.50 187.50   

9 16,000.00 - 16,999.99 16,000.00 400.00              200.00 200.00   

10 17,000.00 - 17,999.99 17,000.00 425.00              212.50 212.50   

11 18,000.00 - 18,999.99 18,000.00 450.00              225.00 225.00   

12 19,000.00 - 19,999.99 19,000.00 475.00              237.50 237.50   

13 20,000.00 - 20,999.99 20,000.00 500.00              250.00 250.00   

14 21,000.00 - 21,999.99 21,000.00 525.00              262.50 262.50   

15 22,000.00 - 22,999.99 22,000.00 550.00              275.00 275.00   

16 23,000.00 - 23,999.99 23,000.00 575.00              287.50 287.50   

17 24,000.00 - 24,999.99 24,000.00 600.00              300.00 300.00   

18 25,000.00 - 25,999.99 25,000.00 625.00              312.50 312.50   

19 26,000.00 - 26,999.99 26,000.00 650.00              325.00 325.00   

20 27,000.00 - 27,999.99 27,000.00 675.00              337.50 337.50   

21 28,000.00 - 28,999.99 28,000.00 700.00              350.00 350.00   

22 29,000.00 - 29,999.99 29,000.00 725.00           362.50 362.50   

23 30,000.00 - 30,999.99 30,000.00 750.00              375.00 375.00   

24 31,000.00 - 31,999.99 31,000.00 775.00              387.50 387.50   

25 32,000.00 - 32,999.99 32,000.00 800.00              400.00 400.00   

26 33,000.00 - 33,999.99 33,000.00 825.00              412.50 412.50   

27 34,000.00 - 34,999.99 34,000.00 850.00              425.00 425.00   

28 35,000.00 and up 35,000.00         875.00              437.50 437.50  

*Employee share represents half of the total monthly premium while the other half is shouldered by the employer.

**For Kasambahay helper receiving a wage of less than Five Thousand Pesos (P5,000.00) per month, the employer will shoulder both the employee and employer share based on the premium schedule.

ILLUSTRATIONS:

Let as assume the an Employee is receiving a Monthly Basic Salary or Earnings (Net of Absences, Late, Overtime) amounting to Php.18,000.00, the Employer-Employee PHILHEALTH Total Monthly Contribution is with details as follows:

Refer to the Philhealth Premium ContributionTable:

Salary Bracket: 18

Salary Range: 18,000.00 - 18,999.99 

Salary Base: 18,000.00

TOTAL ER & EE CONTRIBUTION:

Employer (ER) Contribution (Contribution of the Employer): 225.00

Employee (EE) Contribution (Deduction to Employee Payroll): 225.00

TOTAL MONTHLY PREMIUM:               450.00

NOTE: If the employee(s) has no compensation or earnings for the applicable month, the employer is not required to remit or pay monthly contribution but it is required to report to the SSS that the employee(s) has no compensation or earnings.

Please refer http://www.philhealth.gov.ph/ for updates and other concerns related to this.

Coverage and Computation of SS & EC Monthly Contributions

Before we proceed to the illustrations of the computation of Social Security (SS) and Employee Compensation (EC) Monthly Contributions, let us consider the following glossary of terms:

Beneficiaries: 

Primary beneficiaries - the primary beneficiaries who shall be entitled to the benefits are the dependent spouse until he or she remarries and the dependent legitimate; legitimated or legally adopted, and illegitimate children, subject to the certain conditions.

Secondary beneficiaries - the secondary beneficiaries who shall be entitled to the benefits in the absence of the primary beneficiaries are the dependent parents. In the absence of dependent parents, any other person designated by the member subject to certain conditions.

Contribution - the amount paid to the Social Security System (SSS) by and on behalf of the member.

Monthly Salary Credit (MSC) - The compensation base for contributions and benefits related to the member's total earnings for the month, as indicated in the schedule in Section 18 of the SS Law.

Non-working spouse - a person legally married to a currently employed and actively paying SSS member who devotes full time in the management of household and family affairs may be covered on a voluntary basis provided there is approval of the working spouse. The person should never have been a member of the SSS.

Overseas Filipino Worker (OFW) - a Filipino recruited in the Philippines by a foreign-based employer for employment abroad; having source of income in a foreign country; and permanent resident in a foreign country.

Self-employed member - a person who has no employer other than himself and derives income from his physical and mental effort.

SS Form E-1 (Personal Record) - a person registering with the SSS for the first time as a prospective employee should accomplish this form.

SS Form E-4 (Member's Data Amendment Form) - Changes in the member's record should be reported immediately to the nearest SSS office by accomplishing this form.

UMID (Unified Multi-Purpose Identification Card) - a card which contains a contactless chip and magnetic stripe that stores information and can be used when transacting with participating government agencies such as SSS, GSIS, Pag-IBIG and PhilHealth.

Voluntary Member - a member who is separated from employment or ceased to be self-employed/overseas Filipino worker/non-working spouse and would like to continue paying his/her contributions.

What services are exempt from compulsory coverage as employee? 

1. Casual employment

2. Government service

3. Employment of single proprietor in his own business

Who are covered under the EC program?

All SSS-registered employers and their employees are compulsorily covered under the program.

Employers and employees registered in the SSS need not register again under EC.

How much is the monthly EC contribution?

Only the employer is required to remit monthly EC contributions on behalf of the employees, equivalent to one per cent of the employee's monthly salary credit. The required contribution under the current rate is P10.

How long is an employer obliged to pay for the EC contributions of his employee?

For as long as the employee works for him/her employer is obliged to pay EC contributions.

The obligation of the employer ceases when an employee is separated from employment or, if the employee dies during employment.

When a covered employee becomes disabled during employment, the employer's obligation to pay the monthly contribution arising from the employment will be suspended during such months that the employee is not receiving salary or wages.

SCHEDULE OF CONTRIBUTIONS:

 ILLUSTRATIONS (Under Employer - Employee Relationship-Corporation):

Assuming that an Employee is receiving a Monthly Basic Salary or Earnings (Net of Absences, Late, Overtime) amounting to Php.18,000.00, the Employer-Employee SS & EC Total Monthly Contributions is with details as follows:

* Please refer to the SSS Schedule of Contributions:

Range of Compensation: 15,750 – over

Monthly Salary Credit: 16,000

TOTAL SS ER & EE CONTRIBUTION:

SS ER Contribution (Contribution of the Employer):                       1,178.70

SS EE Contribution (Deduction to Employee Payroll)                           581.30   1,760.00

EC ER  Contribution (Contribution of the Employer on behalf of the Employee):               30.00    

TOTAL ER & EE MONTHLY CONTRIBUTION:       1,790.00         

NOTE: If the employee(s) has no compensation or earnings for the applicable month, the employer is not required to remit or pay monthly contribution but it is required to report to the SSS that the employee(s) has no compensation or earnings.

Rate of Contributions to SSS

The monthly contributions are based on the compensation of members ( Please see table SSS Schedule of Contributions). The current SSS contribution rate is 11% of the monthly salary credit not exceeding P16,000 and this is being shared by the employer (7.37%) and the employee (3.63%).

Self-employed and voluntary members pay the 11% of the monthly salary credit (MSC) based on the monthly earnings declared at the time of registration.

For OFWs, the minimum monthly salary credit is pegged at P5,000.

For the non-working spouse, the contribution will be based on 50% of the working spouse(s) last posted monthly salary credit but in no case shall it be lower than P1,000.

Due Dates of Contributions

For Employed members

It is necessary to be aware of the payment deadlines for contributions and member loans in order to avoid incurring penalties. If you are an employee-member, your employer must pay your contributions and member loans monthly in accordance with the prescribed schedule of payment which is according to the 10th digit of the Employer's ID Number. Late payments will result to penalties and delays in the processing of your benefits and loans.

The frequency of payment is on a monthly basis for business and household employers.

For Self-employed and Voluntary members

If you are a self-employed or a voluntary member, the prescribed schedule of payment is also being followed, (depending on the 10th (last digit) of the SE/VM SS number). However, the frequency of contribution payments for self-employed or a voluntary member can be on a monthly or quarterly basis. A quarter covers three (3) consecutive calendar months ending on the last day of March, June, September and December. Any payment for one, two or all months for a calendar quarter may be made.

For OFWs

Payment of contributions for the months of January to December of a given year may be paid within the same year; contributions for the months of October to December of a given year may also be paid on or before the 31st of January of the succeeding year.

Due Dates of Loan Payments

For member loans, payment should be made monthly in accordance with the prescribed schedule of payment which is according to the 10th digit of the SS ID/Number.

Please refer https://www.sss.gov.ph/ for updates and other concerns related to this.