How I compute witholding tax of my employee if the salary is minimum wage?

Question

How I compute witholding tax of my employee if the salary is minimum wage?

Answer 1

Answer:

As per Philippine Republic Act 9504, minimum wage earners are now exempt from the income tax with regards to their basic salary, overtime pay and even night differential. Because of this, you don't have to compute their income tax anymore. However, the said law will only be effective fifteen days after its publication. Hence, we still have to wait for its publication.

However, this does not mean that you are not anymore required to submit or file the monthly withholding. You still have to do it as compliance with the law even though the income tax withheld is zero.

Answer 2

EJMA is right. Since RA9504 were already signed, you dont have to compute for the withholding tax since minimum wage earners are now fully exempted from income tax, and thus from withholding tax.

The new law will be effective for the taxable year 2008, so all of the taxes that you previously withhold from your minimum wage earner employees should be refunded to them.

As to the manner of how and when, will be answered as soon as the BIR will issue their rrevenue regulations and memorandums.

Answer 3

Go to the IRS website and look for witholding tax tables