Bi-weekly withholding tax computation is similar to Train Law Tax computation but it follows a separate Tax Table.
Below is a table showing the matrix for computing Bi-weekly withholding tax:
Taxable Earnings include the following:
Basic Pay + Overtime Pay + Night Differential - Late and Undertime - Absences + Taxable Allowances +/- Salary Adjustments (largely, the Taxable Earnings refer to one's gross salary, except that it doesn't include the deductions)
Nontaxable Deductions are comprised of the following:
SSS contribution + PhilHealth contribution + Pag-IBIG contribution (the mandatory amount only for HDMF contribution)
Example:
Important note:
Please note that this Bi-weekly is only tested for PSG. In case a client requests to Enable this Policy, the assigned Customer Success Manager may reach out to the Product team to arrange a Demo. The CSM or the client may fill out the Change request form to Enable the Bi-weekly Tax Table.
Want real-time responses? Explore Sprout Info, your 24/7 guide for product inquiries!