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
$350 per week and 6% of any sales above $3000. If he sold
goods worth $5688.00 what is his gross pay?
5688 - 3000 = $2688
2688 x .06 = $161.28 Commission
161.28 + 350 = $511.28 Gross Pay
3. Graduated Commission - This is when the % changes
based on how much someone sells.
Example 4
Steve works for a company that pays him 1% on the first $5000
sold, 2% on the next $15000 sold and 3% on all sales over $20
000. What is his gross pay if he sells $25 000?
5000 x .01 = $50
25 000 - 5000 = $20000
15000 x .02 = $300
20000 - 15000 = $5000
5000 x .03 = $150
50 + 300 + 150 = $500
TRAIN LAW – Effective January 1, 2018, compensation income
earners, self-employed and professional tax payers whose income
are ₱250,000 or less are exempted from the personal income tax
(PIT).
The De Minimis benefits are those benefits of relatively small values
given by employers to their employee on top of the compensation
and these benefits are not subject to withholding (tax exempt)
Gross earnings (gross pay): the amount earned before deductions.
Net earnings (net pay/take-home pay): the amount of your
paycheck.
Hourly rate or hourly wage: the amount of pay per hour worked
based on a standard 40 hour work week.
Overtime rate: rate of pay for hours worked that exceed 40 hours
per week.
Time and a half: standard overtime rate that is 1½ (or 1.5) times an
hourly rate.
Regular pay: earnings based on an hourly rate of pay.
Overtime pay: earnings based on overtime rate of pay.
Employee Compensation refers to the remuneration given an
employee in exchange of his or her services. This can be in the form
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.
Basic pay in an employee’s compensation package refers to the
wages or salaries that they get.
Wages refer to earning received by worker on a piece rate, hourly
rate, or daily rate.
HANDOUT IN BUSINESS MATHEMATICS:
Employees who work more than the required number of hours are
entitled to overtime pay. Overtime premium could be 25% or 50% or
any rate more than 25% as per company policy.
Earnings of employees paid on monthly or annual basis are generally
referred to as salary.
Income is a broader tern than wages or salary. Wages and salaries
are income to the people receiving them. Income includes dividend
income to stockholders, royalty to authors, rent income to those
owning properties for rent, etc.
Employee benefits cover remuneration other than basic pay. These
include vacation and sick leaves, medical, and hospitalization
benefits, meal allowance, transportation allowance, clothing
allowance, and incentive pay for productivity such as commission,
overrides, and profit-sharing.
Take-home pay of an employee is his or her gross earnings less
certain payroll deductions.
The monthly contributions are based on the compensation of
members. The current Social Security System (SSS) contribution
rate is 11% of the monthly salary credit not exceeding ₱16,000 and
this is being shared by the employer (7.37%) and the employee
(3.63%).
PhilHealth contributions are intended for employees and their
beneficiaries should they have problems with their health. Employee
share represents half of the total monthly premium while the other
half is shouldered by the employer. For Kasambahay or helper
receiving a wage of less than ₱5,000 per month, the employer will
shoulder both the employee and employer share based on the
premium schedule.
All government employees holding permanent and non-permanent
positions are members of the Government Service Insurance
System (GSIS). Premium contributions are based on monthly
compensation.
Withholding tax on compensation is the tax withheld from income
payments to individuals arising from an employer-employee
relationship.
With the signing of Republic Act No. 9679, membership to fund shall
be mandatory.
Pay periods
 Weekly: once a week or 52 times a year.
 Biweekly: every two weeks or 26 times a year.
 Semi-monthly: twice a month or 24 times a year.
 Monthly: once a month or 12 times a year.
2
PRESENTATION OF BUSINESS DATA
Types of Charts or Graphs
1. Line chart/graph – shows information that is connected in some
way. It plots the value of the variable and then connects the dots
in order to give an idea of the relationship of consecutive points.
Line charts imply continuous change. Therefore, line charts are
generally used to show trends.
2. Bar chart/graph – shows data in terms of rectangles, which are
called bars, hence bar graph. A bar graph is composed of
discrete bars that represent different categories of data. The
length or height of the bar is equal to the quantity within the
category of data. The length or height of the bar is equal to the
quantity within that category of data. Bar graphs have categories
along the vertical axis and values along the horizontal axis. Bar
graphs are best used to compare values across categories.
3. Pie Chart/ Circle graph – circular chart is used to compare parts
of the whole. It is divided into sections representing certain
quantities.
Parts of a Table
A. Title: The title provides a brief description of the contents of the
table. It should be concise and include the key elements shown in
the table, for example, groups, classifications, variables, etc. It
should never be more than two lines. Although, there are varying
styles for writing a title, most titles should be underlined or
italicized, and the first letter of each word should be capitalized
following the rules for any title, or the entire title can be in caps.
Periods are left out at the end of the title. If the title is two lines
long, the lines can be either single-spaced or double-spaced
depending on the style you're using. Sometimes referred to as the
table legend, a table's title should always go above the table.
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
table number has a period at the end and a space to separate it
from the title, which normally follows the table number.
C. Headings & Subheadings: While data form the body of a table,
headings and subheadings allow you to establish an order to the
data by identifying columns. They should be written in the singular
form unless they refer to groups, e.g., men, women, etc., and the
first letter of the first word should be capitalized. Headings should
be key words that best describe the columns beneath them. They
should not be much longer than the longest entry in their columns.
Example:
 Column Headings: Each column has a heading in order to
identify what data are listed below in a vertical
arrangement. When the column heading is above the
leftmost column, it is often referred to as the "stubhead"
and the column is the "stub column." This column usually
lists the independent variable. The data that follow the stub
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
columns to indicate a certain classification or grouping of
the data in those columns. A column spanner may also
specify units, when appropriate.
D. Table Body: The actual data in a table occupying the columns,
for example, percentages, frequencies, statistical test results,
means, "N" (number of samples), etc.
E. Table Spanner: A table spanner is located in the body of the
table in order to divide the data in a table without changing the
columns. Spanners go the entire length of the table and are often
used to combine two tables into one in order to avoid repetition. A
table spanner may be written in the plural form.
F. Dividers: Dividers are lines that frame the top and bottom of the
table and, or mark the different parts of a table. They are often
used for division or emphasis within the body of a table.
G. Table Notes: You may use table notes to explain anything in your
table that is not self-explanatory. While basic symbols and
abbreviations like SD for standard deviation, N for sample size,
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
after the specific data value. Then, you would place the asterisk
below the table followed by the note or explanation required for
that value. Other data values requiring notation would get two,
three asterisks, or a stacked cross (‡) in that order. Notes
following these additional items would follow the first note using
the same format. Notes that apply to the table in general should
be listed after the word "Note: " under the table.
parts of a whole. Be wary of too many slices since they result in a
cluttered graph. Six slices are as many as can be handled on one
pie.
MEASURES OF CENTRAL TENDENCY
A measure of central tendency (also referred to as center or
central location) is a summary measure that attempts to describe a
whole set of data with a single value that represents the middle or
center of its distribution.
There are 3 main measures of central tendency: the mean, the
median, and the mode. Each of these measures describes a
different indication of the typical or central value in the distribution.
The mean, also known as the arithmetic average, is the result of
adding up all the numbers, then dividing the result by how many
numbers there are.
The median is the middle value or the midpoint in a distribution when
the values are arranged in ascending or descending order. For a
grouped data, the median is in the class where the cumulative
frequency reaches half of the sum of the absolute frequencies.

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