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13th month pay

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1 13th month pay on Fri Nov 12, 2010 10:13 pm

cruzmgrace


Arresto Menor
taxable po ba ang 13th month pay?I have been working for almost 15 years now and this is the first time that I experienced tax deductions from my 13th month pay

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2 Re: 13th month pay on Sat Nov 13, 2010 4:14 am

cruzmgrace


Arresto Menor
in line with this query, my officemate sent an email to our hr personnel and thiswas the communication sent by our HR personnel:

[i]As per communication below 13th month pay is annualized and the Php30,000 cap non-taxable include basic rate and the accumulated incentives received for the whole year.



Is 13th month pay taxable?

Ø Accumulated amount for 13th month bonus plus performance incentives are subject to Php30,000.00 cap non-taxable. Amount in excess of P30,000.00 shall be taxable. Your taxable

13th month pay and your taxable gross income for the applicable payroll period will be the basis for computing your payroll tax withheld for such period.



For example :



If the employee is receiving an average of 5,000.00 incentive every pay day starting January 2010, by end of April, their Php30,000.00 (5,000 X 6 pay period) cap non taxable was consumed already. Therefore, any incentives received after April PLUS their 13th month pay bonus is TAXABLE.
[/i]


Is this correct? Is it really the total amount of incentives received for the year or just the amount of incentive received for the same payout when the 13th month was released?

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3 Re: 13th month pay on Sat Nov 13, 2010 4:15 am

cruzmgrace


Arresto Menor
pinag sabay po kasi nila ng release yung regular payout sa 13th month namin.

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4 Re: 13th month pay on Sat Nov 13, 2010 10:57 am

gbasagre


Arresto Menor
cruzmgrace wrote:pinag sabay po kasi nila ng release yung regular payout sa 13th month namin.

iba naman ang nature nung regular pay mo. iba tax nun, baka kasi dati di lumalagpas sa 30k ang bonuses mo kaya walang tax...

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5 Re: 13th month pay on Sat Nov 13, 2010 3:44 pm

attyLLL


moderator
i believe it is correct. if the incentive pay was being given before was tax free and it added up to 30k, the excess is taxable. you can only receive up to 30k of benefits tax free.


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6 Re: 13th month pay on Sat Nov 13, 2010 10:34 pm

cruzmgrace


Arresto Menor
we always have tax deductions for the incentives that we receive every payout. So even if we already have tax deductions for the previous incentives, we will still get tax deductions if the total amount of incentives accumulated for the year already exceeded 30k? Does that mean that we are being double- taxed?

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7 Re: 13th month pay on Sun Nov 14, 2010 12:45 pm

gbasagre


Arresto Menor
cruzmgrace wrote:we always have tax deductions for the incentives that we receive every payout. So even if we already have tax deductions for the previous incentives, we will still get tax deductions if the total amount of incentives accumulated for the year already exceeded 30k? Does that mean that we are being double- taxed?

Do you have any other incentives or bonuses? try to re-compute otherwise speak with your payroll department para ma-explain nila syo.

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8 13th month pay on Sun Nov 14, 2010 5:07 pm

france_decena


Arresto Menor

Correct! The 13th Month Pay is computed separately with your Monthly Pay.

What you can do is ask your HR or Payroll dept to provide you a Breakdown of your 13th month Pay.

They should give you one.

In our office, the 13th month and our Dec. 15 Pay out is given separately, but it has a separate Pay Slip as well.

Good Luck and spend your 13th month wisely
or you have the option to keep half of it in the bank as your savings! Very Happy

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9 Re: 13th month pay on Wed Nov 17, 2010 5:53 pm

attyLLL


moderator
cruz, if those incentives have been previously taxed, then they should not be included in the 30k tax free benefits.

an employee may receive a maximum of 30k worth of tax free benefits. lump together 13th month with things like tax free allowances. if it does not exceed 30k, then your 13th month should not be taxed, or if it does, only the excess of the 30k should be taxed. good luck.


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10 Re: 13th month pay Today at 6:17 pm

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