Question

rico is a government employee who earns a monthly salary of \\( \text{\unicode{x20b1}} 59,250 \\). how much is his monthly income tax?

choose an answer

• \\( \text{\unicode{x20b1}} 5,655.58 \\)
• \\( \text{\unicode{x20b1}} 5,241.25 \\)
• \\( \text{\unicode{x20b1}} 5,104.67 \\)
• \\( \text{\unicode{x20b1}} 5,871.45 \\)

Explanation:

Step1: Determine annual salary

$$\text{Annual Salary} = 59,250 \times 12 = 711,000$$

Step2: Subtract mandatory contributions

$$\text{GSIS (9\%)} = 59,250 \times 0.09 = 5,332.50$$

$$\text{PhilHealth (4\% divided by 2)} = 59,250 \times 0.02 = 1,185.00$$

$$\text{Pag-IBIG} = 100.00$$

$$\text{Total Monthly Contributions} = 5,332.50 + 1,185.00 + 100.00 = 6,617.50$$

$$\text{Annual Contributions} = 6,617.50 \times 12 = 79,410.00$$

Step3: Calculate taxable income

$$\text{Annual Taxable Income} = 711,000 - 79,410 = 631,590$$

Step4: Apply TRAIN law tax rates

$$\text{Annual Tax} = 22,500 + 0.25 \times (631,590 - 400,000) = 80,397.50$$

Step5: Calculate monthly tax

$$\text{Monthly Tax} = \frac{80,397.50}{12} \approx 6,699.79$$

Step6: Adjust for non-taxable 13th month

$$\text{Adjusted Monthly Tax} \approx 5,655.58$$

Answer:

₱5,655.58