IV.

Organizational Chart

PARTNERS

MANAGER

BOOKING
STAFF

RECEPTIONIST

BOOKKEEPER

At the start of Safe and Sound Travel Agencys operation, the management will
practice the firms internal structure shown above, this organizational structure
presupposes that the authority should begin from the top management to executive level
and lastly to subordinate members.

V. Management and Employees Duties and Functions

A. Top Management Level

The business is to be owned by the partners which consist of six capital
contributors. They are responsible for the overall proper management of the entire
business.

B. Executive Level
The general manager is authorized to implement policies and regulations in
accordance to the companys operations and as a member, belonging to a subordinate

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level of organization, he should know to whom he is responsible and what function he

must perform.

C. Rank and File Employee

The rank and file in the organization will include the Reservation Officer and
Liaison. The Reservation Officer is responsible in accommodating the customers about
their concerns, and the Liaison is responsible for establishing and maintaining mutual
understanding and cooperation as between the company and other entities to which the
company transacts with.

Job Specification and Functions

To be able to start its smooth operation, every tasks or work of each employee
must clearly be defined and specified.

Job Title: Manager

Job Description: Plans, directs and coordinates the operations of the business. Duties and
responsibilities is generalized such as formulating business policies, managing daily
operations, and planning and implementing strategic management in operating, financial,
marketing, human resource and administrative aspects.

Duties and Responsibilities:

Responsible for overall operation and managerial processes of the business such
as planning, coordination, administration and control.

Supervises the day-to-day administrative issues to ensure the smooth operation of

the firm.

Executes the human resources related functions such as hiring, selecting, and
training of the workers.

Responsible for the promotion, demotion, or suspension of all employees within

the company.

Appoints the employees to their specific tasks or work.

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Authorize to sign the essential documents that will affect the business transactions
of the organization.

Job Specification:
Male/Female, 30-45 years old
College graduate of any business related courses
With 3-5 years of work experience in related businesses
Must have strong business and customer focus orientation
Full-time manager
Proficient in both written and oral communication

Job Title: Booking Staff

Job Description: Make and confirm reservations and sell tickets to passengers for large
hotel or motel chains. May direct passengers to designated concourse, pier, or track;
make reservations, deliver tickets, arrange for visas, contact individuals and groups to
inform them of package tours, or provide tourists with travel information, such as points
of interest, restaurants, rates, and emergency service.

Duties and Responsibilities:

Answer inquiries regarding such information as schedules, accommodations,

procedures, and policies.

Assemble and issue required documentation such as tickets, travel insurance

policies, and itineraries.

Confer with customers to determine their service requirements and travel

preferences.

Contact customers or travel agents to advise them of travel conveyance changes

or to confirm reservations.

Determine whether space is available on travel dates requested by customers, and

assign requested spaces when available.

Examine passenger documentation to determine destinations and to assign

boarding passes.

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Inform clients of essential travel information such as travel times, transportation

connections, and medical and visa requirements.

Make and confirm reservations for transportation and accommodations, using

telephones, faxes, mail, and computers.

Job Specification:
Male/Female, 25-30 years old
College graduate
Well-organized, accurate, detail-oriented, professional and courteous.
Excellent in Oral/Written Communication skills
Computer literate
Must have a good communication skills

Job Title: Receptionist

Job Description: Establishes and maintains mutual understanding and cooperation as
between the company and other entities to whom the company transacts with.

Duties and Responsibilities:

Coordinates with the clients regarding their ticket reservations.

Initiates, conceptualizes, coordinates, and implements business programs for

direct customers

Job Specification:
Male/Female, 21-30 years old
College graduate
Familiar in Metro Manila
Technically knowledgeable

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Job Title: Bookkeeper

Job Description: In-charge of the general accounting functions and the preparations of
reports that are vital to the business.

Duties and Responsibilities:

Prepare, examine, and analyze accounting records, financial statements, and other
financial reports to assess accuracy, completeness, and conformance to reporting
and procedural standards.

Compute taxes owed and prepare tax returns, ensuring compliance with payment,
reporting and other tax requirements.

Analyze business operations, trends, costs, revenues, financial commitments, and

obligations, to project future revenues and expenses or to provide advice.

Report to management regarding the finances of establishment.

Establish tables of accounts, and assign entries to proper accounts.

Develop, maintain, and analyze budgets, preparing periodic reports that compare
budgeted costs to actual costs.

Job Specification:
Male/Female, 25-35 years old
Accounting graduate, preferably Certified Public Accountant (CPA)
With at least 3 years of working experience
Computer literate
Must have a good analytical, written and verbal communication skills
Strong attention to detail; results-oriented
Good understanding in bookkeeping functions and generally accepted
accounting principles.
Honest, dedicated, organized and hardworking

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Job Title: On-call Computer Technician

Job Description: A skilled professional who can offer quality technical support.
Responsible for maintenance of computers

Duties and Responsibilities:

Installs hardware and software systems

Maintains or repairs equipment

Troubleshoots a variety of computer issues

Set-ups computer security measures

Configures computer networks

Job Specification:
Male, 20-30 years old
College graduate of any computer course
Knowledgeable in computer problems
Offering technical support on-site or via phone or email

Job Title: On-call Electrician

Job Description: Responsible for any electrical problems within the office.

Duties and Responsibilities:

Assemble, install, test, and maintain electrical or electronic wiring, equipment,

appliances, apparatus, and fixtures, using hand tools and power tools.

Diagnose malfunctioning systems, apparatus, and components, using test

equipment and hand tools, to locate the cause of a breakdown and correct the
problem.

Connect wires to circuit breakers, transformers, or other components.

Inspect electrical systems, equipment, and components to identify hazards,

defects, and the need for adjustment or repair, and to ensure compliance with
codes.

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Advise management on whether continued operation of equipment could be

hazardous.

Test electrical systems and continuity of circuits in electrical wiring, equipment,

and fixtures, using testing devices such as ohmmeters, voltmeters, and
oscilloscopes, to ensure compatibility and safety of system.

Job Specification:
Male, 20-30 years old
College graduate of any electronic course

Job Title: On-call Janitor

Job Description: Responsible for the cleanliness and orderliness of the office.

Duties and Responsibilities:

Sweeps, mops, dusts, pulls trash.

Performs buffing, stripping, and waxing as needed.

Job Specification:
Male, 20-30years old
Hardworking and with good character
Produces quality work within pre-set time frames
Shows initiative in regard to job functions and accepts new responsibilities
as needed.

VI. Internal Controls

Administrative Controls:
1. Installation of clear and readable signage as administrative tool for
communication at the premises.
2. Providing proper trainings in procedures and processes to employees to ensure
that the employees are aware of the business standard.
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3.

Limiting each employee to 8 hours of work period including their break.

4. Conducting background checks to identify any criminal behaviour of each

prospective employee.
5. Organization of drills to employees for their own safety and for handling the
customers in case of emergency.
6. Disclosure of the hazards and risk to civil administration to get help in real
emergency.
7. Insertion of safety in Corporate Social Responsibility (CSR) and demonstration
with community of nearby.
8. Preparation of disaster recovery plans in case of emergency.

Accounting Controls:
1. Require purchases, payroll, and disbursements to be authorized by a designated
person.
2. Separate handling (receipt and deposit) functions from record keeping functions
(recording transactions and reconciling accounts).
3. Ensure that the same person isnt authorized to write and sign a check.
4. Require manager to approve employees time sheets before payroll is prepared.
5. Require pay checks to be distributed by a person other than the one authorizing or
recording payroll transactions or preparing payroll checks.
6. Require the reconciliation to be completed by an independent person who doesnt
have bookkeeping responsibilities or check signing responsibilities.
7. Examine bank statements and cancelled checks to make sure checks are not issued
out of sequence.
8. Initial and date the bank statements or reconciliation report to document that a
review and reconciliation was performed and file the bank statements and
reconciliations. The general manager is responsible for the reconciliations.
9. Prepare all fiscal policies and procedures in writing and obtain managers
approval. Include policies and/or procedures for the cash disbursements, use of
business assets, and conflicts of interest.

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10. Examine expense reports and telephone bills periodically to determine whether
charges are appropriate and related to agency business.
11. Periodically review the logs to determine whether usage is appropriate and related
to business.
12. Maintain an equipment list and periodically complete an equipment inventory.
13. Ensure that all cash and checks received are promptly recorded and deposited in
the form originally received.
14. Issue receipts for cash, using a pre-numbered receipt book.
15. Conduct unannounced cash counts.
16. Reconcile cash receipts daily with appropriate documentation (cash reports,
receipt books, etc.).
17. Cash at the end of the day will be transferred to the assistant manager. Coins will
be left at the safety drawer inside the office. He will have the duty to deposit the
cash collections to the bank account of the business the following day. Deposit
slips will be kept inside the office.

VII. Company Rules and Policies

Safe and Sound Travel Agency formulates organizational policies that will govern
all present and future employees. For the effective implementation of these policies, all
employees of the company hereby promulgate the following rules and regulations for the
guidance and compliance. Violations of any provisions of this constitute for ground of
disciplinary action. This is to ensure that every employees will devote his last effort to the
business and the needs of the customers. We adopted these policies from a feasibility
study entitled Akarui Candle Store because it is comprehensive and informative one.

PERSONNEL POLICIES

The management will set qualification for the different job position. The primary
qualification or criteria in selecting a person needed for a certain job are:
educational attainment/background, work experience as wells as trainings
attended, personality and good moral character.
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Every applicant should undergo screening, examination, and interview. They must
also passed the medical examination and drug test, and present their NBI
clearance, TIN number, SSS Form, and PhilHealth Form.

After careful selection, those who have been hired will undergo training and
orientation in order for them to acquire technical skills and knowledge for the
position they applied for.

The manager will receive a gross pay of PHP 20,000.00 per month. An example
of computation of salary is presented below.
Sample Monthly Salary Computation:
Gross Pay

P20,000.00

Less: (assuming employee is single with no qualified dependent)

Withholding Tax

2,917.00

SSS Contribution

581.00

PhilHealth Contribution

250.00

PAG-IBIG Contribution

100.00

Net Pay

P16.152.00

The booking staff and the receptionist will receive a gross pay of PHP 12,000.00
per month. An example of computation of wage is presented on the next page.

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Sample Monthly Salary Computation:

Gross Pay

P12,000.00

Less: (assuming employee is single with no qualified dependent)

Withholding Tax

1,108.00

SSS Contribution

436.00

PhilHealth Contribution

150.00

PAG-IBIG Contribution

100.00

Net Pay

P10,206.00

The bookkeeper will receive a gross pay of PHP 15,000.00 per month. An
example of computation of wage is presented below.

Sample Monthly Salary Computation:

Gross Pay

P15,000.00

Less: (assuming employee is single with no qualified dependent)

Withholding Tax

1708.00

SSS Contribution

545.00

PhilHealth Contribution

187.50

PAG-IBIG Contribution

100.00

Net Pay

P12,459.50

The computer technician and electrician will receive a service fee of PHP
6,000.00 estimated annually for services rendered.

The janitor will receive an annual gross pay of PHP 21,600.00.

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Generally, employee are allowed and paid only for 8 hours of work, except in the
situation where there is/are late employee/s, additional payment will be made for
the extra hours of work.

Employees are required to work on their respective schedule hour.

A one-hour break shall be given between the working hours.

In case of absent employee/s, the manager will take the duties and responsibilities

The officers and employees will be paid every 15th and 30th of the month.

The cut-off for the computation of payroll is on the 10th and 25th day of the month.

All hired employees of the business are entitled to the following benefits:
Holiday pay-An employee is entitled to at least 100% of his/her minimum
wage rate even if he/she did not report for work, provided he/she is present
or is on leave of absence with pay on the work day immediately preceding
the holiday.
Work performed on that day merits at least twice (200%) the wage rate of
the employee.
13th month pay-13th month is given to employee at the end of every year,
which has equivalent to the basic salary of an employee within a month.
Maternity Leave- Every female employee, whether married or unmarried,
is entitled to maternity leave benefit of sixty (60) days in case of normal
delivery or miscarriage, or seventy-eight (78) days, in case of Caesarian
delivery, with benefits equivalent to one hundred percent (100%) of the
average daily salary credit of the employee. Provided that a female
employee should be an SSS member employed at the time of her delivery
or miscarriage; she must have given the required notification to the SSS
through her employer; and her employer must have paid at least three
monthly contributions to the SSS within the twelve-month period
immediately before the date of the contingency.
Sick Leave and Vacation Leave- Regular employees shall be entitled to
one (1) working day vacation leave and one (1) working day sick leave
with pay every month which totals to 24 days in a year. The twelve (12)
day vacation leave and twelve (12) day sick leave must be availed of
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during the year. Unused vacation and sick leaves are convertible to cash
and shall be given to employee on the last payday of the year.
Emergency Leave-Emergency leaves shall be granted for just and true
cause to all regular employees with pay up to a maximum of five (5)
working days depending on the availability of his unused leave, any
excess of which shall be considered as leave without pay if his unused
leave has already been used.
Emergency cases include death or serious illness of the immediate family
members, matrimonial reasons, calamity and other similar situations
provided with the sufficient proof to justify availed of emergency leave.
Separation pay- An employee is entitled to receive a separation pay
equivalent to one-half (1/2) month pay for every year of service, a fraction
of at least six (6)months being considered as one (1) whole year if his
separation from the service is due to any of the authorized causes provided
by the law.
An employee is entitled to one (1) full months pay as his/her separation
pay if his/her separation had been in the service for at least six (6) months
but less than a year.
Cash Advance-An employee may avail of cash advance of a minimal
amount for every salary period. This is payable in full outright deduction
in the salary for the next period covered.
Source: The Labor Code by Department of Labor and Employment.

SERVICE POLICIES

The store will operate on weekdays and will be opened at 8:00 am and will be
closed at 4:00 pm.

Cleanliness inside the company should be maintained.

All information critical to the operation of the business are adequately protected
and secured.

COLLECTION POLICIES
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The

payments

made

by

the

customers

are

non-refundable

for

the

unconsumed/unused tickets.

Credits are not allowed.

FINANCIAL POLICIES

Loans will be acquired if the company needs additional cash either for operations
expense or purchase of additional equipment.

Payment of interest will be made at the end of each month. It assumed that a legal
per annum rate of 12% is the interest rate and the principal is payable in one year.

EQUIPMENT POLICIES

Equipment that is not working will be subject to repair immediately. If repairing it

is not cost efficient, it may be decided to buy a new equipment.

New equipment will be acquired 6 months before the old asset/s are obsolete or
fully-depreciated.

New equipment will be acquired when the old equipment are damaged or cannot
be repaired.

Old equipment will be disposed when the equipment is obsolete or fullydepreciated.

Old equipment will be disposed when the equipment is damaged and cannot be
repaired.

VIII. Legal Aspects

Security and Exchange Commission
All partners shall file with SEC Articles of Partnership of the official language
duly signed and acknowledged by all partners containing substantially the following
matters:

The name of the partners

The location of the business

The name, citizenship and residence of the partners

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Partnership registrations and basic procedures are the following:

1. Verify/reserve the proposed partnership name.
2. Prepare the following basic documents:

Cover Sheet

Name Verification Slip

Articles of partnership

Registration Data Sheet

Department of Trade and Industry

Registration of the business name with the DTI is necessary to ensure that there
would be no duplication of any business name of any existing organization and that no
other business entity shall make use of it in the future. Listed below are the requirements:

Registration Processing Fee

Procure the corresponding application form (in quadruplicate)

Registration shall be valid for 5 years

File the duly accomplished form with DTI, provincial officer where the business
is located

Bureau of Internal Revenue

The enterprise should register to BIR, an official registration in the form of Tax
Account Number (TAN), which is the way to simplify the record in the control
procedures relating to taxation of the business. Registration also required obtaining an
individual residence certificate. Listed below are the following requirements:

Tax ID Number

Application for Registration

Fill-up Payment for BIR

Apply for individual Income Tax Return

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Social Security System

Under the worker compensation program of the Labor Code, workers should also
be compensated for sickness, injury, and death occurring in course of employment. The
following must be secured during the registration with SSS:

Business Permit/ mayors Permit

Latest Income Tax Return with Financial Statement

SEC/ DTI Registration

Any of the partners of a partnership firm should accomplish SSS Forms R-1
(Employers Data Record) and R-1A (Initial or subsequent list of employees) and submit
these forms together with a photocopy of the Articles of Partnership.
Mayors Permit
Local Government should monitor the activities of the business entities. The
following are the requirements for some specific purposes:

Articles of Partnership

DTI Certificate

SEC Certificate

Barangay Clearance

Community Tax Certificate

BIR Declaration previous years compliance

Fire Safety Certificate

Environmental Certificate

Sanitary Permit

REGISTRATION REQUIREMENTS
Our business is mandated to secure the following requirements to be able to start and
operate:
1. Articles of partnership and incorporation and by-laws.
2. Certificate of registration from the Security and Exchange Commission.
3. Registration from the Bureau of Internal Revenue.
4. Employee registration from the Social Security System.
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5. Mayors permit to operate from the Quezon City Hall.

6. Registered business name in the Department of Trade and Industry.

Before Safe and Sound Travel Agency can operate legally, it has to comply first with
the certain registration requirements from agencies. The procedures in securing the
documents are summarized below:

Legal Requirements
PLACE OF

REQUIREMENTS FOR

REGISTRATION

REGISTRATION

Security of Exchange

Articles of co-partnership

Commission

filled up SEC registration

Department of Tourism

SEC Certificate articles of

co-partnership

City/ Municipal Mayors

Certificate of registration of

Office

Business name

CERTIFICATE ISSUED

SEC certificate
Certification of registration
of business name
(renewable every 5 years)
Mayors permit and
licensed to operate
(renewable annually)
BIR Registration No.

Bureau of Internal

SEC certificate articles of

Partnerships Taxpayers

Revenue

co-partnership

Identification No. Invoiced,

and official Receipts

Social Security System

Filled up SSS application

SSS certificate of

form

membership

List of Employees

SSS employer ID No.

INCOME TAX
Under the National Internal Revenue Code (NIRC), the business is considered as
a partnership, or in NIRC terms, as a corporation. From Section 27 of the NIRC, except
as otherwise provided in this Code, an income tax of thirty percent (30%), effective
January 1, 2009, is hereby imposed upon the taxable income derived during each taxable
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year from all sources within and without the Philippines by every corporation. The
business will use a calendar year for tax purposes.

Annual Income Tax Return for Corporations and Partnerships Provisions:

Tax Form:
BIR Form 1702 - Annual Income Tax Return (For Corporations and Partnerships)
Documentary Requirements:
1. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form
2304), if applicable
2. Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable
3. Duly approved Tax Debit Memo, if applicable
4. Proof of Foreign Tax Credits, if applicable
5. Income tax return previously filed and proof of payment, if amended return is
filed for the same taxable year
6. Account Information Form (AIF) and/or the Certificate of the independent CPA
with Audited Financial Statements, if the gross quarterly sales, earnings, receipts
or output exceed P150,000.00
7. Proof of prior years excess tax credits, if applicable
Procedures:
1. Fill-up BIR Form 1702 in triplicate.
2. If there is payment:
Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District
Office where you are registered and present the duly accomplished BIR Form
1702, together with the required attachments and your payment. In places where
there are no AABs, proceed to the Revenue Collection Officer or duly Authorized
City or Municipal Treasurer located within the Revenue District Office where you
are registered and present the duly accomplished BIR Form 1702 with the
required attachments and your payments. Receive your copy of the duly stamped
and validated form from the teller of the AABs/Revenue Collection Officer/duly
Authorized City or Municipal Treasurer.
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3. For "No Payment" Returns including refundable/ creditable returns and returns
with excess tax credit carry over:
Proceed to the Revenue District Office where you are registered or to any Tax
Filing Center established by BIR and present the duly accomplished BIR Form
1702, together with the required attachments. Receive your copy of the duly
stamped and validated form from the RDO/Tax Filing Center representative

Deadline:
Final Adjustment Return or Annual Income Tax Return - On or before the 15th
day of the fourth month following the close of the taxpayers taxable year

VALUE-ADDED TAX
Under the NIRC, the business is considered a seller of services. From Section 116
of the NIRC, all person whose sales or receipts are greater than 1,1919,500 are required
to pay value-added tax and those who registered VAT-registered person shall pay a tax
equivalent to twelve percent (12%) of his gross monthly sales or receipts.
Monthly Value-Added Tax:
Tax Form:
BIR Form 2550 M - Monthly VAT Return
BIR Form 2550 Q - Quarterly VAT Return
Documentary Requirements:
1. Duly issued Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if
applicable
2. Duly approved Tax Debit Memo, if applicable
3. Previously filed return and proof of payment, for amended return
Procedures
1. Fill-up BIR Form 2550 M or 2550Q in triplicate copies
2. If there is payment:
Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District
Office where taxpayer is required to register and present the duly accomplished
BIR Form 2551 M, together with the required attachments and payment. (The
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Percentage Tax imposed shall be paid at the time the return is filed by the
taxpayer). In places where there are no AABs, the duly accomplished BIR Form
2551 M, together with the required attachments and payment, shall be filed/paid
with the Revenue Collection Officer or duly Authorized Treasurer of the city or
municipality where said business or principal place of business is located. Receive
taxpayer's copy of the duly stamped and validated form from the teller of the
AAB/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.
3. If there is no payment:
Proceed to the Revenue District Office where taxpayer is required to register and
present the duly accomplished BIR Form 2550M or 2550Q, together with the
required attachments. Receive taxpayer's copy of the duly stamped and validated
form from the RDO representative.
Deadline:
Not later than 25th day following the end of each month or 20th day following the
end of each quarter.

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