BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Optional standard deductions
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employer contributions
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Statutory contributions
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substituted contributions
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Detailed explanation-1: -The following are the Statutory Deductions for Philippines: NHIP – PhilHealth Contributions. HMDF – Home Development Mutual Fund Contributions. SSS – Social Security contributions.
Detailed explanation-2: -Statutory benefits, also known as mandatory benefits, are entitlements that employers are obligated by law to provide to their employees. Common examples include benefits like paid annual leave, parental leave, worker’s compensation insurance, and paid sick leave.
Detailed explanation-3: -If you are employed, the current SSS contribution rate is 12% of your monthly salary credit (MSC) not lower than P2, 000 and not exceeding P20, 000, and this is being shared by you (employee) and your employer at 4% and 8%, respectively.
Detailed explanation-4: -Three of these benefits (SSS, PhilHealth, and Pag-IBIG Fund Contributions) are administered by their respective government agencies through a monthly contribution scheme that requires the employer to remit a portion of the employee’s actual monthly salary to each agency.