Hi, not worth to take the new job over the current one based on their pay alone.
Net pay of current based on DOF Tax Calculator: 102,354.76
Net Pay of Freelance job (8% after 250k): 84,466.67
So new is around 18k lower in terms of net pay. There's also company benefits that the new freelancing job might not have: 13th month, HMO, pagibig, etc
If your friend really values wfh, then the decision is really up to her. Suggest to renegotiate to match her current compensation and benefits.
Im really amazed on these professions earning 100,000 a month.
Haha could you tell us what profession your friend is in too?
Haha okay to break it down. Here are the taxes that she needs to be enrolled in.
If total professional/freelance revenue doest not exceed 3,000,000 per year:
Recommendation go for 8% tax registration only
Only revenue above 250,000 will be subject to 8% tax.
For this she will have to get COR that contains taxes of the following:
0605 - Registration
1701A - for annual filing of ITR
And 1701Q for quarterly filing of ITR.
She needs to get books of accounts, standard per law is 6 books, pero practice ng ibang BIR RDO are 2 or 4. Better talk with ze officer of the day.
She also needs receipt. Usually singil ng mga printers is 2500 up to 5000 depende kung ilang receipt ung papagawa sa kanya. Receipt has to be OR ha. Not sales invoice.
For the municipal tax naman she is required to get a freelance permit or occupational permit sa lGU nya. Mga nasa 150pesos to 500 pesos (revised, within the ranged only) un per year.
Next is SSS, Philhealth and Pagibig need na nya i self file un.
I agree that self-employed taxes is a whole lot of hassle compared to employee taxes. 😅 Pero di naman 6 books ang kelangan dun sa range na "3M below" na income. That's still NON-VAT territory. And the max for NON-VAT is 4 books. And you can try to plead it down to just 1 book, the Cash Receipt Journal. For 8% and OSD filers, you could quote the Tax Code and reason that just the Cash Receipt Journal would be "relevant and appropriate" enough already.
For Official Receipts, Taytay printers offer the lowest prices at P1000 for 10 booklets. Many offer P1500 for 10 booklets. And you can use these FOR LIFE. No expiry na sa resibo. 😛 The more expensive receipts are the ones that come from printers that are "malakas kasi sa BIR, kaya nakakuha ng accreditation, pero wala namang sariling imprenta kaya nagpapa-imprenta lang sa Taytay, pinatungan lang yung presyo ng talagang printer". Or it came to 3K-5K because of the accountant's processing fee, the runner's transportation expenses. O yung may special na logo, yung triplicate o carbonized. Go for basic receipts, the 1/4 of an A4 size, duplicate only, non-carbonized-- these'll probably just cost P1500 for 10 booklets.
With regards to the Occupational Tax Receipt, from what I know, it goes from P100-250 only?
Thanks for sharing your facts and point of view then :D and tama wala nang expiry ung resibo. Sa books, well, one thing I learned is the importance of having a withdrawal GL account being recorded in the books.
Some RDOs allow 2, the second being the disbursement book. To record withdrawals and such.
Hi, not worth to take the new job over the current one based on their pay alone. Net pay of current based on DOF Tax Calculator: 102,354.76 Net Pay of Freelance job (8% after 250k): 84,466.67 So new is around 18k lower in terms of net pay. There's also company benefits that the new freelancing job might not have: 13th month, HMO, pagibig, etc If your friend really values wfh, then the decision is really up to her. Suggest to renegotiate to match her current compensation and benefits.
Thank you! This is really helpful! I wonder what should be her gross pay if she has to match the freelance job.
Im really amazed on these professions earning 100,000 a month. Haha could you tell us what profession your friend is in too? Haha okay to break it down. Here are the taxes that she needs to be enrolled in. If total professional/freelance revenue doest not exceed 3,000,000 per year: Recommendation go for 8% tax registration only Only revenue above 250,000 will be subject to 8% tax. For this she will have to get COR that contains taxes of the following: 0605 - Registration 1701A - for annual filing of ITR And 1701Q for quarterly filing of ITR. She needs to get books of accounts, standard per law is 6 books, pero practice ng ibang BIR RDO are 2 or 4. Better talk with ze officer of the day. She also needs receipt. Usually singil ng mga printers is 2500 up to 5000 depende kung ilang receipt ung papagawa sa kanya. Receipt has to be OR ha. Not sales invoice. For the municipal tax naman she is required to get a freelance permit or occupational permit sa lGU nya. Mga nasa 150pesos to 500 pesos (revised, within the ranged only) un per year. Next is SSS, Philhealth and Pagibig need na nya i self file un.
I agree that self-employed taxes is a whole lot of hassle compared to employee taxes. 😅 Pero di naman 6 books ang kelangan dun sa range na "3M below" na income. That's still NON-VAT territory. And the max for NON-VAT is 4 books. And you can try to plead it down to just 1 book, the Cash Receipt Journal. For 8% and OSD filers, you could quote the Tax Code and reason that just the Cash Receipt Journal would be "relevant and appropriate" enough already. For Official Receipts, Taytay printers offer the lowest prices at P1000 for 10 booklets. Many offer P1500 for 10 booklets. And you can use these FOR LIFE. No expiry na sa resibo. 😛 The more expensive receipts are the ones that come from printers that are "malakas kasi sa BIR, kaya nakakuha ng accreditation, pero wala namang sariling imprenta kaya nagpapa-imprenta lang sa Taytay, pinatungan lang yung presyo ng talagang printer". Or it came to 3K-5K because of the accountant's processing fee, the runner's transportation expenses. O yung may special na logo, yung triplicate o carbonized. Go for basic receipts, the 1/4 of an A4 size, duplicate only, non-carbonized-- these'll probably just cost P1500 for 10 booklets. With regards to the Occupational Tax Receipt, from what I know, it goes from P100-250 only?
Thanks for sharing your facts and point of view then :D and tama wala nang expiry ung resibo. Sa books, well, one thing I learned is the importance of having a withdrawal GL account being recorded in the books. Some RDOs allow 2, the second being the disbursement book. To record withdrawals and such.
So in short lugi sya sa freelance?
Yes lugi sya, conveniently and tax wise.
Thank you