Chapter 10 Flashcards
(76 cards)
This refers to any person for whom an individual performs any service of whatever nature as employee of such person.
Employer
This refers to any individual who is a recipient of wages and includes officer, employee or elected official of the Government of the Philippines or any political subdivisions, agency or instrumentality thereof
Employee
Are officers of a company its employees?
Yes
What is the 4 fold test?
332
This is a screening process for employees to hire.
Selection and engagement of employees
This refers to the control of the employer on the payment of wages
Payment of wages
This is the power to retrench or terminate employees
Power of dismissal
This is the power to control the employee on the means and methods by which the work is accomplished
Power of control
What is the most important in the elements of a four fold test?
Power of control
Who are not employees?
Consultants, directors without management function, tv show artists
Those who are given powers or prerogatives to lay down and execute managerial policies and/or to hire, transfer, suspend, lay. off, recall, discharge, assign or discipline employees.
Managerial employees
Those who effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment.
Supervisory employees
Those who hold neither managerial nor supervisory functions. the rest of those uno are not managerial, supervisory
Rank and file employees
Employees who are recipients of minimum wage.
They are exempt from income tax on their compensation.
Minimum wage earners
Employees who are subject to the regular progressive income tax. working for at least l yr per permanent employee
Regular employee
These are facilities or privileges such as entertainment, medical services, or courtesy discounts on purchases that are of relatively small value and are furnished by the employer merely as a means of promoting the health, goodwill, contentment, or efficiency of his employees.
De minimis benefits
memorize de minimus benefits table
What is the treatment for the excess de minimus over their regulatory l limits?
All are added to 13th month pay and other benefits
Is there a limit to the vacation leave and sick leave de minimus of government employees?
No
What is the treatment for terminal leave pay or commutation of unused leave credits due to involuntary separation?
It is treated as a de minimis benefits subject to a 10-day credit limit
Are employee benefits of non-Filipino nationals taxable on income?
No they are exempt
Are employee benefits of Filipino nationals employed by foreign government embassies taxable on income?
Yes
What are the exemptions to the taxability of employee benefits of Filipino nationals employed by foreign government embassies?
If the work under:
UN
AUSAID
FAO
WHO
etc
Is the exemption of Filipino employees under foreign government embassies automatic?
No. They have to file an application for confirmation of tax exemption with the BIR’s ITAD