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IV. Organizational Chart

At the start of Safe and Sound Travel Agency’s operation, the management will

practice the firm’s 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 company’s operations and as a member, belonging to a subordinate

PARTNERS

MANAGER

BOOKINGSTAFF

RECEPTIONIST BOOKKEEPER



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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.


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:


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.


Coordinates with the clients regarding their ticket reservations. Initiates, conceptualizes, coordinates, and implements business programs for

direct customers

Job Specification:


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.


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:


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


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.


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.


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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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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The bookkeeper will receive a gross pay of PHP 15,000.00 per month. An

example of computation of wage is presented below.

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.

Sample Monthly Salary Computation:

Gross Pay P12,000.00

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

Withholding Tax

SSS Contribution

PhilHealth Contribution

PAG-IBIG Contribution

1,108.00

436.00

150.00

100.00

Net Pay P10,206.00

Sample Monthly Salary Computation:

Gross Pay P15,000.00

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

Withholding Tax

SSS Contribution

PhilHealth Contribution

PAG-IBIG Contribution

1708.00

545.00

187.50

100.00

Net Pay P12,459.50



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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 10

thand 25

th 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 month’s 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 fully-

depreciated.

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/ mayor’s 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.

Mayor’s 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 andoperate:

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. Mayor’s 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

REGISTRATION

REQUIREMENTS FOR

REGISTRATIONCERTIFICATE ISSUED

Security of Exchange

Commission

Articles of co-partnership

filled up SEC registrationSEC certificate

Department of TourismSEC Certificate articles of

co-partnership

Certification of registration

of business name

(renewable every 5 years)

City/ Municipal Mayor’s

Office

Certificate of registration of

Business name

Mayor’s permit and

licensed to operate

(renewable annually)

Bureau of Internal

Revenue

SEC certificate articles of

co-partnership

BIR Registration No.Partnership’s Taxpayers

Identification No. Invoiced,

and official Receipts

Social Security SystemFilled up SSS application

form

List of Employees

SSS certificate of

membership

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 year’s 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 taxpayer’s 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.

8. management and legal study

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