Answer to Question #270485 in Accounting for Another you

Question

A. In 2020, DRP Company has two employees- Bong Ga and Bato Din. Bong and Bato's gross monthly compensation is 60,000 and 70,000 respectively (net of mandatory contributions). Both are paid on the 30th of the month.Compute for the annual income tax of Bong and Bato supposed that DRP Company withholds periodically.

Answer 1

In a financial year, Bong Ga and Bato Din earn;

Bong Ga;

$=12×60000$

$=720000$

Bato Din;

$=12×70000$

$=840000$

The income tax rate is $10\%$ for income between 500000-750000 and $15\%$ for income between 750000 -1000000.

Hence for Bong Ga,the annual income tax will be;

$720000×0.1=72000$

And for Bato Din,the annual income tax will be;

$840000×0.15=126000$