What is TRAIN?
Tax Reform for Acceleration and Inclusion
The goal of the first package 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.
The following are the needed information for you to compute 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 an easy way on how to compute employee taxes for the month
Basic Salary: Php 30,000.00
Overtime Pay: Php 2,500.00
Late deduction: Php 500.00
SSS Contribution: Php 581.30
Philhealth Contribution: Php 412.50
Pag-Ibig Contribution: Php 100.00
Taxable income = Monthly Basic Pay + Overtime Pay + Holiday Pay + Night Differential – Tardiness- Absences – SSS/Philhealth/PagIbig deductions
Php 30,906.2 = 30,000 + 2,500 -500-581.30-412.50-100
Your tax for the month is Php 2,014.57 by simply checking on this BIR Tax Table:
So 30,906.2 x 12
Multiply by 20%
Divide it by 12 pay periods
= 2014.57333333333333 or 2014.57