HANDOUT IN BUSINESS MATHEMATICS: 1

TYPES OF COMMISSION The BIR sets a limit on the value of tax-exempt de minimis benefits.
Under RR 8-00, as amended by RR 10-00, the BIR considers the
1. Straight commission is when a person is paid a % of following as de minimis benefits:
sales only.
 10 days monetized unused vacation leave credits;
Example 1  medical cash allowance to dependents of employees not
Harry receives 30% commission on the appliances he sells. If exceeding P750 per semester or P125 per month;
he sells a TV for $350.00, a Refrigerator for $400.00 and a
 rice subsidy of P1,000.00 or one-sack of rice per month;
heater for $440.00 how much does Harry make in commission?
 uniforms and clothing allowance not exceeding P3,000.00
(350 + 400 + 440) = $1190
per year;
1190 x .30 = $357
 medical benefits not exceeding P10,000.00;
Example 2  laundry allowance of P300 per month;
Juliet receives 25% commission on the appliances she sells. If  employee achievement awards in the form of tangible
she sells a computer for $450.00, a printer for $200.00 and a personal property other than cash or gift certificate, with an
cell phone for$ 508.00, how much does Juliet make in annual monetary value not exceeding P10,000 received by
commission?(diesel) the employee under an established written plan;
450+200+508=$1158  flowers, fruits, books or similar items given to employees
1158(.25)=$289.50 under special circumstances, e.g. on account of illness,
marriage, birth of a baby, etc.; and
2. Salary plus Commission - This is exactly as it sounds, a  daily meal allowance for overtime work not exceeding 25%
person gets paid a salary and a % of sales. of the basic minimum wage.

Example 3 COMPENSATION AND BENEFITS

Harry decides to work for another company that will pay him
Gross earnings (gross pay): the amount earned before deductions.
$350 per week and 6% of any sales above $3000. If he sold
goods worth $5688.00 what is his gross pay? Net earnings (net pay/take-home pay): the amount of your
5688 - 3000 = $2688 paycheck.
2688 x .06 = $161.28 Commission
161.28 + 350 = $511.28 Gross Pay Hourly rate or hourly wage: the amount of pay per hour worked
based on a standard 40 hour work week.
3. Graduated Commission - This is when the % changes
based on how much someone sells. Overtime rate: rate of pay for hours worked that exceed 40 hours
per week.
Example 4
Steve works for a company that pays him 1% on the first $5000 Time and a half: standard overtime rate that is 1½ (or 1.5) times an
sold, 2% on the next $15000 sold and 3% on all sales over $20 hourly rate.
000. What is his gross pay if he sells $25 000?
Regular pay: earnings based on an hourly rate of pay.
5000 x .01 = $50
25 000 - 5000 = $20000 Overtime pay: earnings based on overtime rate of pay.
15000 x .02 = $300
20000 - 15000 = $5000 Employee Compensation refers to the remuneration given an
5000 x .03 = $150 employee in exchange of his or her services. This can be in the form
50 + 300 + 150 = $500 of a wage, a salary, employee benefits including sick leave and
vacation leave, incentive pay, which includes productivity pay,
commission, override, bonus, and profit-sharing.
TRAIN LAW – Effective January 1, 2018, compensation income
earners, self-employed and professional tax payers whose income Basic pay in an employee’s compensation package refers to the
are ₱250,000 or less are exempted from the personal income tax wages or salaries that they get.
(PIT).
Wages refer to earning received by worker on a piece rate, hourly
The De Minimis benefits are those benefits of relatively small values rate, or daily rate.
given by employers to their employee on top of the compensation
and these benefits are not subject to withholding (tax exempt)
HANDOUT IN BUSINESS MATHEMATICS: 2

Employees who work more than the required number of hours are PRESENTATION OF BUSINESS DATA
entitled to overtime pay. Overtime premium could be 25% or 50% or
any rate more than 25% as per company policy. Types of Charts or Graphs
1. Line chart/graph – shows information that is connected in some
Earnings of employees paid on monthly or annual basis are generally way. It plots the value of the variable and then connects the dots
referred to as salary. in order to give an idea of the relationship of consecutive points.
Line charts imply continuous change. Therefore, line charts are
Income is a broader tern than wages or salary. Wages and salaries generally used to show trends.
are income to the people receiving them. Income includes dividend 2. Bar chart/graph – shows data in terms of rectangles, which are
income to stockholders, royalty to authors, rent income to those called bars, hence bar graph. A bar graph is composed of
owning properties for rent, etc. discrete bars that represent different categories of data. The
length or height of the bar is equal to the quantity within the
Employee benefits cover remuneration other than basic pay. These
category of data. The length or height of the bar is equal to the
include vacation and sick leaves, medical, and hospitalization
quantity within that category of data. Bar graphs have categories
benefits, meal allowance, transportation allowance, clothing
along the vertical axis and values along the horizontal axis. Bar
allowance, and incentive pay for productivity such as commission,
graphs are best used to compare values across categories.
overrides, and profit-sharing.
3. Pie Chart/ Circle graph – circular chart is used to compare parts
Take-home pay of an employee is his or her gross earnings less of the whole. It is divided into sections representing certain
certain payroll deductions. quantities.

The monthly contributions are based on the compensation of Parts of a Table

members. The current Social Security System (SSS) contribution A. Title: The title provides a brief description of the contents of the
rate is 11% of the monthly salary credit not exceeding ₱16,000 and table. It should be concise and include the key elements shown in
this is being shared by the employer (7.37%) and the employee the table, for example, groups, classifications, variables, etc. It
(3.63%). should never be more than two lines. Although, there are varying
styles for writing a title, most titles should be underlined or
PhilHealth contributions are intended for employees and their italicized, and the first letter of each word should be capitalized
beneficiaries should they have problems with their health. Employee following the rules for any title, or the entire title can be in caps.
share represents half of the total monthly premium while the other Periods are left out at the end of the title. If the title is two lines
half is shouldered by the employer. For Kasambahay or helper long, the lines can be either single-spaced or double-spaced
receiving a wage of less than ₱5,000 per month, the employer will depending on the style you're using. Sometimes referred to as the
shoulder both the employee and employer share based on the table legend, a table's title should always go above the table.
premium schedule. B. Table number: Tables should be numbered in the order that they
are referred to in your report, as Table 1, Table 2, and so on. The
All government employees holding permanent and non-permanent table number has a period at the end and a space to separate it
positions are members of the Government Service Insurance from the title, which normally follows the table number.
System (GSIS). Premium contributions are based on monthly C. Headings & Subheadings: While data form the body of a table,
compensation. headings and subheadings allow you to establish an order to the
data by identifying columns. They should be written in the singular
Withholding tax on compensation is the tax withheld from income form unless they refer to groups, e.g., men, women, etc., and the
payments to individuals arising from an employer-employee first letter of the first word should be capitalized. Headings should
relationship. be key words that best describe the columns beneath them. They
should not be much longer than the longest entry in their columns.
With the signing of Republic Act No. 9679, membership to fund shall
Example:
be mandatory.
 Column Headings: Each column has a heading in order to
Pay periods identify what data are listed below in a vertical
arrangement. When the column heading is above the
 Weekly: once a week or 52 times a year. leftmost column, it is often referred to as the "stubhead"
 Biweekly: every two weeks or 26 times a year. and the column is the "stub column." This column usually
 Semi-monthly: twice a month or 24 times a year. lists the independent variable. The data that follow the stub
 Monthly: once a month or 12 times a year. column are known as the "stub." All other column headings
are simply referred to as "column heads." Note that units
should be specified in column headings when applicable.
HANDOUT IN BUSINESS MATHEMATICS: 3

 Column Spanner: A heading that sits above two or more parts of a whole. Be wary of too many slices since they result in a
columns to indicate a certain classification or grouping of cluttered graph. Six slices are as many as can be handled on one
the data in those columns. A column spanner may also pie.
specify units, when appropriate.
D. Table Body: The actual data in a table occupying the columns, MEASURES OF CENTRAL TENDENCY
for example, percentages, frequencies, statistical test results,
means, "N" (number of samples), etc. A measure of central tendency (also referred to as center or
E. Table Spanner: A table spanner is located in the body of the central location) is a summary measure that attempts to describe a
table in order to divide the data in a table without changing the whole set of data with a single value that represents the middle or
columns. Spanners go the entire length of the table and are often center of its distribution.
used to combine two tables into one in order to avoid repetition. A
table spanner may be written in the plural form. There are 3 main measures of central tendency: the mean, the
F. Dividers: Dividers are lines that frame the top and bottom of the median, and the mode. Each of these measures describes a
table and, or mark the different parts of a table. They are often different indication of the typical or central value in the distribution.
used for division or emphasis within the body of a table.
G. Table Notes: You may use table notes to explain anything in your The mean, also known as the arithmetic average, is the result of
table that is not self-explanatory. While basic symbols and adding up all the numbers, then dividing the result by how many
abbreviations like SD for standard deviation, N for sample size, numbers there are.
and % for percentage, are commonly used, you may have other
technical terms or other issues that you wish to explain. In these
cases, you would place an asterisk (*) for the first note you need
The median is the middle value or the midpoint in a distribution when
after the specific data value. Then, you would place the asterisk
below the table followed by the note or explanation required for the values are arranged in ascending or descending order. For a
that value. Other data values requiring notation would get two,
grouped data, the median is in the class where the cumulative
three asterisks, or a stacked cross (‡) in that order. Notes
following these additional items would follow the first note using frequency reaches half of the sum of the absolute frequencies.
the same format. Notes that apply to the table in general should
be listed after the word "Note: " under the table.

GRAPHS AND CHARTS

Column graphs consist of patterned rectangles displayed along a

baseline called the x-, category or the horizontal axis. The height of Where Lm = is the lower boundary of the median class;
the rectangle represents the amount of data. The left-to-right bias
most people possess, makes column graphs more appropriate for N/2 = half the sum of the absolute frequencies;
time series data than bar graphs. Column graphs best show changes fm = is the frequency of the median class; and
in data over time (short time series) •comparisons of several items
(relationship between two series) i = the class width.
The mode is the number which appears most often (the one with the
Bar graphs are basically a column graph in which the rectangles are
arranged horizontally. The length of each rectangle represents its highest frequency). When data are grouped, is defined as the
value. Bar graphs best show data series with no natural order. A bar midpoint of the interval containing the largest number of cases.
graph is without the left-to-right bias of a column graph since the
presentation is vertical. Thus bar graphs are particularly appropriate
whenever time is not the order of the data or when the there is no
natural order. If the data are a time series, a carefully chosen column
graph is generally more appropriate but bar graphs can be used to
vary a presentation when many column graphs of time series are
used.

A Pie chart is a circle with radii connecting the center to the edge.
The area between two radii is called a slice. Data values are
proportionate to the angle between the radii. Pie charts best show