Week 1 Commission on Cash Basis

Commission - similar to computing straight commission.

Commission Commission on Cash on Installment

- amount paid to dealers or salespersons Basis
based on the percentage of sales. - commission not based on sales, but on the
collection or payments made by buyers.
Formula:
Down Payment
- first payment that a buyer mades when
he/she buys something with an agreement
to pay the rest later.

Derivation: Book Balance or Gross Balance

- the total amount a client has to pay tat
includes penalties or interest incurred by
unpaid balance that was not paid on time.

Week 2
Types of Commissions Ways of Service Payment
1. Straight Commission
- earned when an employee gets paid Types of Compensation
only one percentage of sales. (commission 1. Salary and Wage
is the entire salary). Salary - compensation usually quoted
annually or monthly for an employee.
2. Salary plus Commission Compensation - paid to those employees
- earned when a salesperson receives a occupying managerial, administrative, and
fixed monthly salary and a percentage of other similar services.
his/her sales.
Conversions of the periodic payment:
Formula: Weekly Salary = annual salary is divided by
52.
Bi-weekly Salary = annual salary is divided
by 26
Monthly Salary = annual salary is divided
3. Graduated Commission by 12
- commission rate increases as the sales Semi-monthly Salary = annual salary is
amount increases. divided by 24.

Overrides Wage
- earnings of incentives computed as - compensation quoted in an hourly or daily
commissions of people who have people rate for an employee.
working under him/her.
 Minimum Wage in the Philippines 2022
Examples:
1. Piece Rate
- pay depends on the number of pieces
produced.

2. Hourly Rate
- pay depends on the number of hours
worked.

3. Daily Rate
- pay depends on the number of days
worked.

Comparison Salary VS Wage

Salary
- pay that is usually released every 15 days;
- other companies or offices release this pay
on a monthly basis. Week 3
- Salary earners are not paid less if they Income and Benefits
work for only a fraction of the required
number of hours; Income
- they are also not paid for working - a money that an individual receives in
overtime. exchange for providing a good/service or
through investing capital.
Wage
- pay received by workers either weekly or Some sources of income:
sometimes even monthly at their employer’s 1. Farmers, fishermen, and vendors earn
convenience. income by providing goods such as crops,
- Wage earners are under the “no work no fish, and vegetables.
pay policy” which means they are only paid 2. Individuals may earn income by investing
the actual number of hours or days that they their capital in stocks, mutual funds, or bank
worked or number of places produced. deposits.

Minimum Wage For employees, income to them may be

Minimum Wage is the “minimum amount salary or wage. For non-employees, income
of remuneration that an employer is may be as follows:
required to pay wage earners for the work
performed during the given period, which A. Commission income (if employees
cannot be reduced by collective agreement earn from commodities that they
or an individual contract. sell).
 B. Rental income (if persons) have Benefits of a Salary/Wage Earner
properties that are rented by others.
C. Dividend Income (if persons earns 1. Social Insurance / Institutional
as stockholders) rationale:
D. Royalties (if persons are earning as - private companies and government
authors). employees are required by law to contribute
E. Profits (earnings by businesses). to the social insurance funds.

Benefits *Social Insurance Agencies:

- employee compensation given by an a. SSS – Social Security System (for
employer on top of the basic salary/wage. employees in the private sector)
b. GSIS – Government Service Insurance
Note: benefits may come in the form of cash System (for government employees)
or in-kind. C. Philhealth – Philippine Health Insurance
Corp. (PHIC); - for all employees
Examples of Benefits: d. HDMF – Home Development Mutual
Fund (Pag-ibig Fund) (Pag-Ibig –
1. Cash Benefits Pagtutulungan sa Kinabukasan, Ikaw,
- 13th month pay, bonuses, rice subsidy, Bangko, Industriya at Gobyerno)
transportation, allowance.
2. Personal/Individual
2. Non-cash benefits a. 13th Month Pay – mandatory 1/12 of the
- SSS/GSIS, Pag-ibig, PhilHealth, insurance basic salary that an employee received for a
year.
Gross and Net Earnings b. Paternity Leave – benefit given to male
Gross Earnings - the amount earned by an employees when their legal spouse gives
individual before taxes and other possible birth (7 days)
deductions are made. c. Solo Parent’s Leave – parental leave of
7 working days per year, with full pay
Net Earnings - the amount earned by an d. Service Incentive Leave – five (5) days
individual after deduction are made from the leave of absence with pay per year (may be
gross earnings. forced or converted to cash)

Week 4 3. Company Initiated Benefits

Benefits of a wage earner a. Sick Leave – leave with pay due to
sickness.
Benefits - usually 15 days for each year of service.
- Different kinds of non-wage compensation B. Vacation Leave – leave with pay to go
given to employees in addition to their on vacation.
regular wages or salaries. - usually around 10 days for each year of
- Increase the economic security of service
employees and improve satisfaction C. Maternity Leave – benefit for pregnant
therefore retention in the company. female employees when they give birth
- currently approved: 105 calendar days
- for those who served for at least 2 years – Thus, all three components will sum up to
paid leave 22.5 days pay for every year of service. This
- for those who served less than 2 years – now is the minimum benefit when retiring
pro- rated under RA 7641. Thus, the formula for
d. Performance-based Increase retirement (Lopez, [Link]. 2016) is as follows:
- given based on how well the employee R = 22.5 x P x T
works Where: R = retirement pay
e. Bonuses P = daily rate
- Christmas, mid-year T = number of years served
f. Fringe Benefits – compensation in
addition to direct wages, or salaries j. Separation Pay
- may be taxable - given to an employee who is “terminated
- company car, house allowance, medical due to installation of labor-saving devices,
insurance, paid holidays, pension schemes, redundancy, retrenchment, closure or
subsidized meals. cessation of business or incurable disease.”
g. De Minimis Benefits
- benefits of relatively small values provided “In cases of installation of labor-saving
by employers to the employee on top of the devices or redundancy, the employee is
basic compensation intended for the entitled to receive the equivalent of one
general welfare of the employees month pay or one month for every year of
Examples: clothing allowance; chalk service, whichever is higher.
allowance; rice allowance, all other benefits
that are non-taxable. In cases of retrenchment, closure or
h. Tax Exemptions cessation of business or incurable disease,
i. Retirement Benefit the employee is entitled to receive the
Retirement Pay Law, states that an equivalent of one month pay or one-half
employee will be qualified for retirement month pay for every year of service,
benefits if he/she retires at the age of 60 whichever is higher.
and if he/she has worked for the company
for at least 5 years. The benefit (from RA Taxable Benefits
7641) upon retirement shall be “one-half - Fringe benefits to managerial and
month salary for every year of service.” supervisory employees are taxable with the
According to Zalamea (2017), RA 7641 32% fringe benefit tax, which is a final tax
goes on to further define that “one-half except for “de minimis benefits” and
month” includes ALL of the following three benefits provided for the convenience of the
components: employer.
a. 15 days salary
b. cash equivalent of 5 days of service Nontaxable Benefits
incentive leave, and 1. The 13th month pay and other bonuses
c. 1/12 of the 13th month pay not exceeding a total of P90,000 are also
non-taxable under the TRAIN.
2. Monetized unused vacation leave credits
of private employees not exceeding 10 days
during the year.
3. Monetized value of vacation and sick number of overtime hours worked and the
leave credits paid to government officials overtime rate.
and employees.
4. Medical cash allowance to dependents Legal Bases for Overtime Pays
of employees, not exceeding Php1500 per
employee per semester or Php250 per 1. Article 87 of the Labor Code (work
month. beyond eight hours)
5. Rice subsidy of Php2000 per month or a. Overtime Rate on Regular Days
50 kilos of rice. - regular hourly rate + 25% thereof
6. Uniform and clothing allowance not (1.25 or 125%)
exceeding Php 6000 annually. b. Work performed beyond eight hours on
7. Actual Medical assistance not exceeding a holiday or rest day = rate of the first eight
Php10000 per year. hours on a holiday or rest day plus at least
8. Laundry allowance not exceeding thirty percent (30%) thereof.
Php300 monthly. - holiday rate + 30% thereof (1.3 or
9. Employee achievement awards not 130%)
exceeding Php10000 per year.
10. Gifts not exceeding Php5000 per year. 2. Article 93 of the Labor Code
11. Meal allowance for overtime work not
exceeding 25% of the basic minimum wage. a. for work done on employee’s rest day or
12. Benefits received by employees Sunday.
through the collective bargaining agreement Overtime rate = regular rate + 30%
(CBA) and productivity incentive schemes thereof
provided that the total monetary value
received from both the CBA and the b. for work done on any special holiday
productivity incentive schemes combined do Overtime rate = regular rate + 30%
not exceed Php10000 per employee per thereof
taxable year.
c. for work on rest day which is special
Week 5 holiday
Overtime Pay Overtime rate = regular rate + 50%
thereof
Definition of terms:
Gross Pay – (or gross earnings) – d. higher rate may be given under the
computed by taking the sum of the regular collective
or basic pay and the overtime pay bargaining agreement or any contract
between
Regular Pay – compensation computed by the employee and employer
multiplying the number of hours worked and
the hourly rate e. when no regular work day nor regular
rest day
Overtime Pay / Premium – excess Overtime rate = regular rate + 30%
payment over the regular rate; thereof
compensation computed by multiplying the (on Sundays and holidays )
3. Article 94 of the Labor Code What is Excel used for?
Excel is typically used to organize data and
a. Work on rest day which is a special perform financial analysis.
holiday
Overtime rate = (1.5) (regular rate) It is used across all business functions and
at companies from small to large.
b. Work on regular holiday
Overtime rate = (2) (regular rate) The main uses of Excel include:
● Data entry
c. Work on rest day which is a regular ● Data management
holiday ● Accounting
Overtime rate = (2.6) (regular rate) ● Financial analysis
● Charting and graphing
● Programming
● Time management
● Task management
● Financial modeling
● Customer relationship management
(CRM)
● Almost anything that needs to be
organized

Week 7
PRESENTATION AND ANALYSIS OF
BUSINESS DATA

Data
- plural of the Latin word ‘datum’ meaning ‘a
thing given’.
- refers to factual information in raw or
unorganized form.

Week 6 Business Data

e-Spreadsheet for Salary and Overtime - help businesses grow when used properly.
Pay - can be more than helpful; they can be
meaningful.
What is Microsoft Excel?
It is a software program created by Statistics
Microsoft that uses spreadsheets to - branch of mathematics that deals with
organize numbers and data with formulas collecting, organizing, analyzing, and
and functions. interpreting data.
- method which scientists and
Excel analysis is ubiquitous around the mathematicians have developed for
world and used by businesses of all sizes to
perform financial analysis.
interpreting and drawing conclusions from - is generally the easiest form to digest and
collected data. has the least clutter.

Ways of Presenting Data Disadvantage

1. Textual Presentation least precise form of data presentation.
- provides a narrative to the presented data.
Measures Of Central Tendency And
Advantages: Variability
- can provide both an interpretation on the
data itself ; as well as an explanation on Mean, Median, Mode, and Range
how the data came to be
- can also help in emphasizing / Mean - is the usual "average,“.
deemphasizing relevant/irrelevant data by - Computed by adding up all the values
providing thorough explanations. and then dividing the sum by the number
of values.
Disadvantage:
the textual form is the most difficult Median is the "middle" value in the list of
to digest since it can be lengthy and numbers.
cluttered.
To find the median, arrange the
2. Tabular Presentation observations in ascending order.
- provides a summary of the presented data.
If there is an even number of data/numbers
Advantages: such that there is no middle value, the
- can be used to look up individual, precise median is the mean of the two middle
values values.
- can also help in comparing exact values
between and among data categories. Get the middlemost value for data that are
- useful when summarizing data with odd in number.
different units of measure.
Mode is the value that occurs most often. If
Disadvantage: no number is repeated, then there is no
least effective form in highlighting trends mode for the list.
and emphasizing data relationships.
The "range" is the difference between the
3. Graphical Presentation highest and lowest values.
- provides a visualization of the presented Range = HV - LV
data.
Measures of Central Tendency
Advantages: - values that attempt to describe a set of
- can be used to effectively communicate data by identifying the central position within
shapes and trends. that set of data.
- can be used in emphasizing relationships - Mean, median, mode
across data.
Measures of Variability Bar Graphs
- tell how values differ from each other and ● Bar graphs are the pictorial
how the values are far from the mean. representation of data (generally
- Range, variance, standard deviation. grouped), in the form of vertical or
horizontal rectangular bars, where
Variance the length of bars are proportional to
- The variance of a data set is calculated by the measure of data.
taking the mean of the squared differences ● Bar graphs best show data series
between each value and the mean value. and data comparisons in competition
and with no natural order, such as
according to time, etc.

Pie Charts
● A pie chart is a type of graph that
represents the data in the circular
graph. The slices of pie show the
relative size of the data.
● Pie charts best show the
Standard Deviation composition or breakdown of a
- The standard deviation is calculated by whole.
taking the square root of the variance.
Line Graphs
● The line graph connects data
points with lines; different series are
given different line markings (for
example, dashed or dotted) or
different tick marks.
● Line graphs best show the
comparison of long series and is
best used when attempting to
communicate a data trend.
Week 8
Analysis And Presentation Of Data Tables and Graphs
Using Ms Excel/Spss ● Visual presentations of data used to
organize information to show
Graph patterns and relation.
● A diagram showing the relation ● Set of facts or figures systematically
between variable quantities, typically displayed, especially in columns.
of two variables, each measured
along one of a pair of axes at right
angles.
● Common types are Line Graphs, Bar
Graphs and Pie Charts.
Microsoft Excel
software program created by Microsoft
that uses spreadsheets to organize
numbers and data with formulas and
functions. Excel analysis is ubiquitous
around the world and is used by businesses
of all sizes to perform financial analysis.
Doing charts, or bar graphs manually can
be tedious, especially when you are making
reports in finances or businesses. That is
why it is easy to do these in Microsoft Excel
or other software such as SPSS( Statistical
Package for the social sciences or
Statistical Product and Service Solutions).