What is TRAIN LAW?
Tax Reform for Acceleration and Inclusion
The goal of the Comprehensive Tax Reform Program (CTRP) or TRAIN is to create a simpler, fair, and more efficient system, as per the constitution, where the rich will have a bigger contribution and the poor will benefit more from the government’s programs and services.
Here’s the essential information you require to calculate your income tax! 📊💸
– How much is your SSS/Philhealth and PagIbig contributions
– Allowances and other benefits if any
– Copy of the BIR Tax table
Here’s a simple way to calculate employee taxes for the month! 📆
Basic Salary: Php 40,000.00
Overtime Pay: Php 5,000.00
Late deduction: Php 200.00
SSS Contribution: Php 1,350
Philhealth Contribution: Php 1,000
Pag-Ibig Contribution: Php 100.00
Taxable income
= Basic Salary + Overtime Pay + Holiday Pay + Night Differential – Tardiness – Absences – SSS/Philhealth/PagIbig deductions
According to the information provided, your Taxable Income will amount to Php 42,350
Php 42,350 = 40,000 + 5000 – 200 – 1350 – 1000 -100
Your tax for the month is Php 3,678.33 by simply checking the table:
BIR Computation:
= 42,350 x 12 pay periods
= 508,200 – 400,000
= 108,200 x 20%
= 21,640 + 22,500
= 44,140 / 12 pay periods
= 3678.333333333333333 or 3678.33
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