Table Of Contents

FIRST QUARTER

LESSON 1: FRACTIONS AND DECIMALS 1

What are fractions? 1
What are Decimals? 4
LESSON 2: RATIOS AND PROPORTIONS 6
Definition of Ratio 6
Proportions 7
LESSON 3: KINDS OF PROPORTIONS 8
LESSON 4: MARK-ON AND MARK-UP 9
LESSON 5: DISCOUNTS 10
Trade Discount 10
Cash Discount 11
LESSON 6: PROFIT AND LOSS 11
Determining the Cost of Goods Sold 12
Determining the Net Sales 12
Determining Gross Profit 13
Determining the Net Profit / Loss 13
Definition of Break-even Point 13
LESSON 7: INTEREST AND COMMISSION 15
Interest 15
Commission 17

SECOND QUARTER

LESSON 1: SALARY, WAGE, & INCOME 22

Benefits of a Wage Earner 23
LESSON 2: OVERTIME PAY 24
LESSON 3: PRESENTING BUSINESS DATA 24

0
LESSON 1: FRACTIONS AND DECIMALS

What are fractions?

A fraction represents a part of a whole or a group. It is expressed as a quotient of two
quantities namely the numerator and the denominator.

The numerator indicates the number of parts taken from the whole. The denominator
specifies the number of equal parts the whole is divided into.

3 TYPES OF FRACTIONS

➔ Proper Fractions
➔ Improper Fractions
Whose numerator is less than the
denominator. This fraction has a value less Whose numerator is greater than or
than 1. equal to the denominator. This fraction has
a greater than or equal to 1.

➔ Mixed Fractions

Which consist of a whole number and proper fraction.

ADDING FRACTIONS
To add fractions with the same denominator, add the numerators and write the sum
over the common denominator. Then simplify or reduce the resulting fraction to its lowest
term if possible.

To add fractions with unlike denominator,

1. Check the denominators of the fractions.
2. Make the denominators of the fractions same, by finding the LCM of

1
 denominators and rationalising them.
3. Add the numerators of the fractions, keeping the denominator common.
4. Simplify the fraction to get the final sum.

SUBTRACTING FRACTIONS
To subtract fractions, with the same denominator, subtract the numerators and write
the difference over the common denominator.

To subtract fractions, with unlike denominators,

1. Find the least common multiple, LCM of the two denominators.
2. Convert both the fractions into like fractions by making the denominators
same (by finding the equivalent fractions).
3. Subtract the numerators.

DO THIS!
Add and subtract the following fractions.

2
MULTIPLYING FRACTIONS
1. Change the mixed number (if any) to an improper fraction.
2. Before you multiply, cross cancel (reduce the numerator of one factor with the
denominator of another by dividing both their GCF.
3. Multiply the numerators, and then multiply the denominators.
4. Convert the result (if improper fraction) to a mixed number.
5. Reduce your answer in its simplest or lowest term.

DIVIDING FRACTIONS
1. Change the mixed number (if any) to an improper fraction.
2. Change the division sign to multiplication sign.
3. Get the reciprocal of the divisor by interchanging its numerator and denominator.
4. If possible, cross cancel before multiplying.
5. Multiply the numerator and then multiply the denominators.
6. Convert the result (if improper fraction) to a mixed number.
7. Reduce answers in simplest or lowest form.

ANSWER ME!
Find the value of each expression in lowest terms.

3
What are Decimals?
Decimals are numbers with decimal points and decimal places. Can also be defined as
a fraction with an unwritten denominator of 10 or some power of 10. There are 2 types of
decimals,

1. Terminating decimals. Is a decimal that ends or terminates. Terminating decimals are

the rational numbers.
2. Non Terminating decimals. Is a decimal number that does not end. Non terminating
decimals are further classified as repeating and non-repeating decimals.

ADDING DECIMALS

1. Add decimals the same way as you 4. Then add digits from right to left.
add whole numbers.
2. Write the digits in columns and
align decimal points.
3. For convenience, zeros may be
appended so that numbers may
have the same number of places.

SUBTRACTING DECIMALS

Subtracting decimal numbers is the value of the minuend.

same way as you subtract whole numbers.
Write the digits in the subtrahend is
greater than the digit in the same place

SOLVE!
Add and subtract the following decimals.

4
MULTIPLYING DECIMALS

Multiplying decimals is the same way as

you multiply whole numbers.
Count the number of decimal places in the
factors.
The number of decimal places in
the product should be equal to the total
number of decimal places in the factors.

DIVIDING DECIMALS

In the case in which the dividend is a right as it was done in the divisor.
decimal, Then divide.
1. Divide decimals as you divide
whole numbers.
2. Place the decimal point of the
quotient directly above the decimal
point of the dividend and continue
the division process.
In the case in which the divisor and
the dividend are both decimals,
1. Move the decimal point of the
divisor to the right until it becomes
the whole number.
2. Move also the decimal point of the
dividend as many places to the

DO THIS!
Multiply and divide the following decimals.

5
LESSON 2: RATIOS AND PROPORTIONS

Ratio is applied not just in activities that involve simple day-to-today comparison but
more importantly in business comparative analysis. Ratio analysis is one of the techniques
that is used in financial statement analysis

Definition of Ratio
A ratio is a comparison of two numbers or quantities. The ratio of a number a to a
number b provided that b is not equal to zero can be written as a/b or a : b or a to b

EXAMPLE:

If the ratio involves comparison of quantities with different units of measurement,

such as 3 feet (ft) to 36 inches (in), 2 weeks to 14 days, you need to convert the first one of
the units to the other before simplifying the ratio. For example, to express the ratio of 10 days
to 2 weeks in lowest terms, convert 2 weeks first to 14 days, and then simplify the ratio.

10/14 =10/14 ÷ 2/2=5/7

Hence, the ratio 10 days to 2 weeks in simplest form is written as 5/7 or 5:7 or 5 to 7.

EXAMPLE:

A company’s accounting manager is reviewing the budget for next year and
calculating some ratios. He wanted to know the firm’s ability to pay its short term debt (loan
or financial obligation that is due within one year) by determining its current ratio or working
capital ratio (also known as banker’s ratio).

Current ratio is one of the ratios computed in the financial statement analysis. It is
calculated by dividing the current assets (cash and other assets that can be readily converted
into cash within one year) by the current liabilities (debts or financial obligations due within
one year). Hence, the current ratio reflects the ability of a firm to pay for its current liabilities
with its current assets.

1. What is the firm's current ratio if it has assets of P 1,550,000 and current liabilities of
P 1,240,000?
2. Will the company have the ability to pay its short term debt?

SOLUTION:

6
 Yes the company will still have the ability to pay its short term debt based on the
current ratio of 1.25 which is greater than 1.0.

EXERCISES

On December 31, 2016, the balance sheet of Marshal company shows the total current
assets of $1,100,000 and the total current liabilities of $400,000. You are required to compute
the current ratio of the company.

Proportions
It refers to the statement of the two ratios. If a:b and c:d are two equal ratios, then the
proportion can be written as a:b=c:d ( read as “a is to b as c is to d”) or

The terms a and d are called the extremes, and the terms b and c are called means. In
a proportion, the product of the means is equal to the product of the extremes, that is, is
……….portion if and only if ad=bc.

FINDING THE MISSING TERM IN A PROPORTION

To find the missing term in a given proportion, apply the rule of proportion.
The product of the extremes of a proportion is equal to the product of its means.
Then solve for the missing term algebraically.

Examples:

7
LESSON 3: KINDS OF PROPORTIONS

1. Direct Proportion
Exixtswhen twoquantities x and y, of the proportion vary directly or are in
direct variation; that is x increases (or decreases), then y increases (or decreases) also
by the same factor or constant.

2. Indirect or Inverse Proportion

Exists when two quantities, x and y, of the proportion are inversely
proportional. It means that x varies inversely with y or x is inversely proportional to
y;that is, as x increases, then y decreases.

3. Partitive Proportion
Refers to a kind of proportion where the given total is partitioned or divided
into equal or unequal parts depending on the given ratios.

8
LESSON 4: MARK-ON AND MARK-UP

Mark On
Refers to the difference between the original selling price and the cost of an item.
For example, if the original selling price of an item is php 990 and the cost is php 790, then
the mark-on is php 200.

Selling price
It is the market price that the product will be sold, and the cost is the actual price that
the product was bought from the manufacturer or wholesaler.

Mark-up and Markdown

The mark-up is an increase in the original selling price. On the other hand, if the
selling price is deducted to php 840, the amount of price reduction is php 140 (900-840) is
called the markdown.
Thus, a markdown is a reduction on the original selling price.

Formulas for Mark-on or Initial Markup

● Mark-on or Initial Markup= Selling price - cost
● Selling Price= cost + Initial Markup or Initial Markup
● Cost= Selling Price - Mark-on or Initial Markup

To solve for the cost when the mark-on/ initial markup and the rate of mark-on based on cost
are known, use these formulas:
● Mark-on= Cost x Rate of Mark-on
● Rate of Mark-on= Mark-on / Cost

Formulas:
● Mark-on= Cost x Rate of Mark-on
● Cost= Mark-on / Rate of mark-on

● Selling Price= Cost + Cost x Rate of Mark-on

● Selling Price= Cost (1 + Rate of Mark-on)

● Rate of selling price= Rate of cost + Rate of Mark on

● Rate Selling price= 100% + rate of mark-on
● Selling price= cost x rate of selling price
● cost= Selling Price / Rate of Selling price

Mark Up
It is obtained by getting the difference between the new selling price and the original
selling price. The following may be used:
● Mark-up= New Selling Price - Original Selling Price
● New Selling Price= Original Selling Price + Markup
● Original Selling Price= New Selling Price - Markup
● Markup Rate= Markup / Original Selling Price

9
Markdown
It is obtained by getting the difference between the original selling price and the new
selling price. Unlike in the case of markup, the new selling price is lower than the original
selling price. Hence, the formula for computing markdown is the following:
● Markdown= Original Selling Price - New Selling Price
● Markdown Rate= Markdown / Original Selling Price

● Markdown= Original Selling Price x Markdown Rate

● New Selling Price= Original Selling Price - (Original Selling Price x Markdown Rate)
● New Selling Price= Original Selling Price (1 - Markdown Rate)

Thus, the formula for the original Selling Price is given as,
➔ Original Selling Price= New Selling Price / (1 - Markdown Rate)

LESSON 5: DISCOUNTS

Discount
It is the amount deducted from the selling price of the product or service. Companies
give discounts for several reasons.

Types of Discount
➔ Trade Discount
Refers to the discount offered by a manufacturer or wholesaler to
encourage resellers (customers) to purchase a product. It is usually stated in a
specific amount or percentage.
➔ Cash Discount
Is the discount given to persuade customers to pay in cash immediately
or within a specific time.

Trade Discount
Is applied on the list on the list price or price tag. The amount of the trade discount
will depend on the trade discount rate.

● Trade Discount= List Price x Trade Discount Rate

The price after deducting the trade discount is known as the net price.

● Net Price= List Price - Trade Discount

● Net Price= List Price - (List Price x Trade Discount Rate)
● Net Price= List Price (1 - Trade Discount Rate)

10
Cash Discount
It is applied in the net price, the price after all trade discounts have been deducted.

The amount of cash discount will depend on the dating methods used, and the terms
and date of payment stated. The dating method can be ordinary (invoice date), at the end of
the month, or upon receipt of goods. Terms or payment may be given as 10/15, 5/30, or n/60.

● 10/15 means that the customer will get 10% discounts if he or she pays within 15
days.
● 5/30 means that the customer will receive a 5% discount if he or she pays within 30
days.
● n/60 means that the customer will pay the net amount in full within 60 days. The price
after deducting any cash discount is the selling price.

Formulas:
Let us derive the formula for selling price.
● Cash Discounts= Net Price x Cash Discount Rate
● Selling Price= Net Price - Cash Discount
● Selling Price= Net Price - (Net Price x Cash Discount Rate)
● Selling Price= Net Price (1 - Cash Discount Rate)

LESSON 6: PROFIT AND LOSS

Profit
It is when a person does a business transaction and gets more than what he invested is
said to have profit. The profit he gets will be equal to the additional money he gets other than
his investment. So profit can be understood as the extra money one gets other than what he
had invested.
Loss
It is when a person gets an amount less than what he had invested, then he is said to
have a loss.
➔ Profit/Loss = Selling Price - Cost

11
Gross Profit
In business context, a gross profit obtained when the net sales is greater than the cost
of goods sold. A net loss is incurred when the cost of goods sold is greater than the net sales.
To avoid loss in any business, the net sales should be high enough to cover the cost of goods
sold, operating expenses, possible deductions, taxes, and profit objective.
Formula:
● Gross Profit/Loss = Net Sales – Cost of Goods Sold
● Net Sales = Gross Sales – sales Returns and Allowances and Discounts

Determining the Cost of Goods Sold

To calculate the cost of goods sold, add purchases to the beginning inventory (the
inventory balance at the start of an accounting period), and then subtract the ending inventory
(the inventory balance at the end of the period)
Formulas:
● Available Goods for Sale = Beginning Inventory + Purchase
● Cost of Goods Sold = Available Goods for Sale – Ending Inventory

Example:
At the beginning of a certain year, the inventory of Liz’s Skin Care & Spa was
P175,364.21, and purchases during the year amounted to P50,789.64. At the end of the year,
the manager had checked that they have remaining inventory of P75,643.89. Find the
available Goods for sale?
Solution:
➔ Available Goods for Sale = Beginning Inventory + Purchase
=P175,364.21+P50,789.64
=P226,153.85
➔ Cost of Goods Sold = Available Goods for Sale – Ending Inventory
=P226,153.85-P75,643.89
=P150,509.96

Determining the Net Sales

Sales are crucial to the success of any business. It is important that you understand the
difference between gross sales and net sales.
Gross sales refer to the total amount of goods or services sold (without deduction
yet), whereas net sales indicate the amount of the sales after deducting sales returns,
allowances and discounts.

12
Formula:
● Net Sales = Gross Sales – sales Returns, allowances, and Discounts
Example:
A specialty store had gross sales amounting to P1,250,000 and sales returns of
P269,708. How much were the net sales of the specialty store?
➔ Net Sales = Gross Sales – sales Returns, allowances, and Discounts
=P1,250,000-P269,708
=P980,292
If a rice dealer's net sales for the month of June was P89,564 and his gross sales was
P98,750,how much was his sales returns and allowances?
➔ Sales, Returns & allowances=P98,750 - P89,564
=P9,186

Determining Gross Profit

Gross Profit is the amount left from the net sales after deducting the cost of goods or
services sold.
Formula:
● Gross Profit = Net Sales – Cost of Goods or Services Sold

Determining the Net Profit / Loss

Net profit or net loss is the amount left after subtracting all the operating expenses
from the gross profit.
Formula:
● Net Profit/loss = Gross Profit – Operating Expenses

Definition of Break-even Point

It refers to the sales (in pesos or in units) where the total revenue and total costs are
equal, that is, there is neither profit or loss. Total revenue obtained by multiplying the unit
selling price by the number of units sold, whereas total cost is calculated by adding the fixed
costs and the total variable costs. The total variable cost is determined by multiplying the unit
variable cost by the number of units sold.
Methods in Determining the Break-even Point
● Graphical Method

13
 ● Algebraic Approach
● Formulas

Example:
The cost of producing A consists of ₱45 for labour, ₱54 for materials, and other
variable costs of ₱1. Product A can be sold for ₱150 each. The total fixed cost is ₱150,000
per month. Determine how many units of product A must sell to break even. What is BEP in
pesos of product A?

Solutions:
➔ Graphical Method

➔ Algebraic Approach
Let x = number of units of product A that must be sold to break even.
Total Revenue = Total Cost
● Unit Selling Price = total Fixed Cost + Total Variable Cost
₱150x = ₱150,000 + (₱45 + ₱54 + ₱1) x
₱150x = ₱150,000 + ₱100x
₱150x - ₱100x = ₱150,000
₱50x = ₱150,000
X=3,000 units (BEP in units)
● BEP in pesos = ₱150 x 3,000
= ₱450,000

➔ Formulas

14
BEP in Units = Total Fixed Cost ÷(Selling Price – Total Variable Cost)
= ₱150,000 ÷(₱150 - ₱100)
= 3,000 units
BEP in pesos = Total Fixed Cost ÷ {(1-vc/sP)}
= ₱150,000 ÷(1-100/150)
= ₱450,000

LESSON 7: INTEREST AND COMMISSION

Interest and commission are two very common concepts applied in different business
types. Understanding these concepts will help you make wise financial decisions in your life.

Interest can be classified as :

Simple interest is the interest computed based on the principal only ( the amount of
money borrowed or invested). It is usually used for short-term loans or investment.

Formula:

I = Prt

The maturity value (F) or the total amount the borrower has to repay is equal to the
sum of the principal plus the interest. It is also referred to as the future value.

F= P + I

F = P + Prt

F = P(1 + rt)

Example 1 :

What would be the interest Kaye has to pay if she borrowed ₱10,000 for 1 year with
an interest rate of 6% per annum?

Solution:

I =PRT

= ( ₱10,000 ) (0.06) (1)

= ₱600

Example 2:

15
 What is the total amount that Kaye will pay at the end of 1 year?

Solution:

Use the formula for the maturity or future value.

F= P + I

F = ₱10,000 + ₱600

= ₱10,600

Compound Interest

Compound Interest is computed based on the principal plus the accumulated interest.
This is why compound interest is also known as the “ interest on top of the interest.” Unlike
simple interest, compound interest allows interest to earn its own interest. Interest
periodically computed and added to the principal. The combined amount of the original
principal and the interest then becomes the new beginning principal for the succeeding
period.

The compound interest formulas are as follows:

● F=P(1+ⅈ)^n
● F=P(1+r/m)^mt
● I=F-P.

Where,

F = future value or accumulated value N = mt = number of interest periods

P = principal M = number of compounding periods per

year
I = compound interest
T = time or term of investment ( in years )
I = r/m = rate of interest per interest
period R = nominal rate of interest ( in percent)

Example:

An amount of ₱100,000 is invested for 2years at 6% interest compounded quarterly. Is

this a better investment compared to investing it at a simple interest at 6%?

16
Solution:

➔ At compound interest: ➔ At simple interest:

F=P(1+r/m)^mt F = P ( 1 + rt)

= ₱100,000 (1+0.06/4)^(4^((2) ) ) = ₱100,000 (1 + 0.06(2) )

= ₱112,649.26 = ₱112,000

Commission

It is the amount of money a salesperson receives based on the level of his or her sales.
This amount is based on a n agreed percentage of the revenue the salesperson has brought in
through his or her sales.

Types of Commission

1. Straight commission is a compensation plan where the salesperson receives only a

fixed percent of sales. No fixed salary is given. There is no limit to the total
commission that a salesperson can earn.

Example: Liza, a beauty product agent, was able to sell beauty products worth
₱48,000. Given that her commission rate is 15%, how much will she receive if her
earnings are based on commission rate alone?

Solution:

Commission = Sales x Comm Rate

= ₱48,000 x 0.15 = ₱7,200

2. Salary plus commission is an alternative compensation plan where a salesperson

receives a commission in addition to his or her fixed salary. This compensation plan
offers security of receiving something regardless of the level of sales a salesperson
makes. However, companies who offer this compensation plan usually have high
expectations and a quota that salespersons have to meet.

Example: If Liza receives a monthly salary of ₱20,000 and 10% commission

on her total sales, what would be her total earnings for the same amount of sales.
Refer to the above example.

Solution:

Total earnings = Monthly Salary + Sales Comm

= ₱20,000 + (₱48,000 x .10)

= ₱20,000 + ₱4,800 = ₱24,800

17
 3. Salary plus bonus is a compensation plan where salespeople receive a bonus if they
exceed their sales quota. This plan intends to keep salespeople motivated to their best.

Example: If Liza’s sales quota is ₱25,000, how much will be her earnings if
she is given a bonus of 12% if she exceeds her sales quota?

Solution:

Total Earnings = Monthly Salary + Bonus

= ₱20,000 + (₱48,000-₱25,000) x 0.12

= ₱20,000 + ₱2,760 = ₱22,760

4. Graduated commission is a compensation plan where the rate of commission

increases as the sales volume increases.

Example: If Liza receives no fixed salary and she is being paid based on a
graduated commission scheme, how much is her total earnings if she is paid 10% on
the first ₱20,000, 15% on the second ₱20,000, and 20% on all sales in excess of
₱40,000?

Solution:

Comm on first ₱20,000 = ₱20,000 x 0.10 ₱2,000

Comm on second ₱20,000 = ₱20,000 x 0.15 ₱3,000

Comm in excess of ₱40,000 = ₱ 8,000 x 0.20 ₱1,600

Total Comm ₱6,600

5. Override commission refers to the additional commission that sales managers or

supervisors earn from the sales of their sales representatives (subordinate).

Example: If Liza’s sales supervisor receives 1% override commission from the

sales of his sales representatives, how much is the override commission of the sales
supervisor based on Liza’s sales alone?

Solution:

Override Comm = ₱48,000 x 0.01 = ₱480

Computing Commission on Cash Basis

Commission is computed on a cash basis when a sale is completed. The commission

is based on cash received from the sale. Hence, it is a fee that a company pays to a
salesperson in exchange for his or her service in completing a sale.

18
 Example:

Mercy works part-time as a real estate agent and earns a commission of 5%

for the sales she made. She was able to sell in cash three units of town houses worth
₱1,409,640 (corner unit), ₱1,115,960 (end unit), and ₱876,000 (inner unit). How
much will be her total commission?

Solution:

Total Sales = ₱1,409,640 + ₱1,115,960 + ₱876,000= ₱3,401,600

Comm = Total Sales x Comm Rate

= ₱3,401,600 x 0.05

= ₱170,080

Computing Commission on Installment Basis

Commission is computed on installment basis when sales involve periodic payments

rather than the cash payment. This computation of commission is commonly used by a
company when the method of selling involves installment transactions or credit terms. This is
viewed as effective in involving salespeople in collecting overdue accounts.

Example:

Kaye purchased a townhouse unit whose total contract price is ₱921,200. She
paid ₱5,000 as a reservation fee which is to be deducted from the total contract price.
She has to pay a total gross equity of ₱106,200 in 18 months.

Equity is the difference between the value of the property and the cost of
liabilities of owning the property. The balance will be paid through a housing loan
from the bank or Pag-IBIG Fund.

● How much should Kaye pay monthly for the equity?

If the real estate agent receives 3% commission, how much will she receive as her
monthly commission on installment basis starting on the 7th equity payment based on the
company’s commission structure?

● How much was the gross balance or the amount to be financed by the bank?
● How much is the current increased balance (gross balance with added interest) when
charged with an interest rate of 32%?

What is the interest rate charged by Pag-IBIG Fund if Kaye pays monthly the amount
of ₱7,055.75 for 30 years?

19
 Calculate the remaining balance interest (difference between the total amortization
payment and the gross balance).

SOLUTION:

SOLUTION:

20
Second
Quarter
Business Mathematics

21
LESSON 1: SALARY, WAGE, & INCOME
Salary refers to the compensation paid on the basis of a fixed annual rate. It does not
depend on the actual number of hours worked. It is the compensation for managerial or
administrative employees.
Wage is the compensation paid on the basis of a rate per hour worked. It is calculated
by multiplying the number of hours worked by the hourly rate of pay. It is the compensation
for employees doing manual work.
Income, or earnings, refers to the amount of money received by an individual for the
work he or she has done. In this context, income may mean salary or wages.
Gross Earnings
Gross earnings refer to the amount an employee earns before any deductions for
benefits or taxes.
Formulas:
● Gross Semimonthly
Pay or Earnings = Annual Salary ÷ 24
● Gross Biweekly Earnings = Annual Salary ÷ 26
● Gross Earnings (weekly)= Annual Salary / 52
● Gross Earning (per hour)= total no. of hrs. x rate per hr.
● Gross Earnings (per piece of work)
Example: A garment factory pays its workers using the following differential
piecework rate (differential piecework rate is the fixed rate for different levels of
outputs).
Output Piecework Rate
1 – 40 units ₱62
41-60 units ₱72
61- units or more ₱82
What will be the gross earnings of the factory worker who finished 70 units?
Solution:
For the 1st 40 units: 40 x ₱62 = ₱2,480
For the next 20 units 20 x ₱72 = ₱1,440
For the last 10 units: 10 x ₱82 = ₱ 820
Total Gross Earnings: = ₱4,740

22
Benefits of a Wage Earner
● Social Security System (SSS)
● Government Social Insurance Security(GSIS)
● PhilHealth
● Pag-IBIG/HDMF
Net Workings
Net workings refer to the amount that an employee actually receives after all the
deductions have been made. It is the take-home pay of an employee. The standard deductions
are those mandated by law or by the government such as the withholding tax; and Social
Security System (SSS), PhilHealth and Pag-IBIG contributions

Standard Deduction from Salaries and Wages

1. Withholding Tax
It is the amount deducted by the employer from the employee’s salary or
wages, which the former uses to pay in advance the income tax imposed by the
government.
The computation of the withholding tax has been simplified as single and
married taxpayers under the same tax brackets. They have the same tax rate regardless
of whether they have dependents or none. These directives are now implemented as
part of the Tax Reform for Acceleration and Inclusion (TRAIN) Law
2. Social Security System
The Social Security System (SSS) is the agency that implements a social
security program for the employees of the private sector or voluntary citizens,
whereas the Government Service Insurance System (GSIS) does the same for the
employees of the government sector. Both agencies have the same goal- to provide
employees with benefits and protection.
3. PhilHealth
Employees who are members of SSS are automatically covered by the national
health insurance program of the Philippines Health Insurance Corporation
(PhilHealth). There is a unified benefit package of personal health services for all
Phil-Health members that includes hospital care and outpatient care. Monthly
contributions are paid both by the employer and the employee. The PhilHealth
contribution is also based on the compensation of the employee.
4. Pag-IBIG or Home Development Mutual Fund
The Home Development Mutual Fund (HDMF) or more popularly known as
Pag-IBIG (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Indutriya at Gobyerno)
Fund, is a mutual provident savings system for private and government groups. The
employer and employee pay monthly premiums.
Pag-IBIG provides benefits such as savings, short-term loans, and housing

23
 programs to its members.

LESSON 2: OVERTIME PAY

Overtime (OT) work refers to the work done by an employee in excess of their normal
working hours. The additional compensation paid for the work performed beyond eight
hours a day is called the overtime pay.

LESSON 3: PRESENTING BUSINESS DATA

Ways of Presenting Data
1. Textual Form
Data are presented in paragraphs or sentences. This is applicable when there
are few numbers involved.
2. Graphical Form
Data is presented using graphs. A graph is a pictorial or visual representation

24
 of data that enables us to see at a glance the general characteristics and special
features of the data.

Kinds of Graphs:
● Bar Graph
● Line Graph
● Pie Chart
● Scatter Plot, etc.

How to Interpret Graphs:

1. Check what is being measured by looking at vertical and horizontal scales.

2. Describe the location of the center and spread of the distribution.
3. Describe the manner in which data are distributed, the shape of the distribution and
the number of peaks and modes.
4. Look for any unusual features

Guidelines in Formatting a Graph:

1. Make the graph simple and present only essential information to clearly communicate
the important points and avoid confusing the reader.
2. Provide a title that clearly conveys the graph's purpose or overall message.
3. Indicate the units of measurement on the x-and y-axes.
4. Label each part of the chart or graph.
5. Use different colors or variation in patterns to help readers in distinguishing
categories and understanding the graph or chart.

3. Tabular Form

Tables are commonly used in organizing and summarizing data. Table should
be simple, easy to read and understand, and should contain only relevant data.

25
 A table essentially consists of the following parts:

Landicho, Catherine M. Ma’am Florie Ann Sisante

Author Dedicated to:

26