I am working for a private company.my salary is on a no work no paybasis.do i have to pay my taxes?how much?

Question

my employer changed his policy regarding our employment status.before,my co workers and i are receiving our 30 day salary, but now he made it a no work no pay policy.but still our taxes are of the same amount as we were a regular employee.my total earnings for a 20 day work period is only 9000 pesos,and my tax is 1400.is this amount right?do we really need to pay taxes even if we are on a no work no pay policy?

Answer 1

It's still the same if the salary you received before and after the change in the policy is still the same. On a 1400 a month withholding tax for a 9000 salary I think thats to much. On how much you should pay it would be a ong computation depending on your status in life (married, single, head of the family and how many dependents you have). Fringe benefit also takes effect in the computation which should not exceed 30,000. But if you are tax 1400 each month for the entire year. You shoud be refunded. Please check with your HR on the returns. On the question if you should be taxed, No matter whaat is the employment policy you should pay your taxes or file you tax return.

Answer 2

RA9504 were already signed by the President last week. It is now a law which exempts minimum wage earners from income tax. When the law is already fully effective, your employer should no longer be deducting any tax from you.

But assuming there is no RA9504, 1,400 withholding tax is too much for a 9,000 monthly salary. If you are under single exemption, your tax should only be around Php860 monthly.