Compensation Income Quiz

The following are elements of employer-employee relationship, EXCEPT:

• Payment of wages

• Power of dismissal

• Power of contract

• Selection and engagement of employees

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

• Supervisory employees

• Rank and file employees

• Contractual employees

The following are exempt benefits under NIRC and special laws, except:

• 14th month pay and other benefits

• Benefits from SSS under SSS Act of 1954, as amended

• Benefits from GSIS under GSIS Act of 1937, as amended

• De Minimis Benefits

De Minimis Benefits was restricted to mean only in which of the following:

• Rice subsidy not exceeding 1 sack of 60-kg rice per month

• Laundry allowance not exceeding 300 per quarter

• Monetized unused sick leave of private employees not exceeding 10 days during the year

• Actual medical assistance not exceeding 10,000 per annum

STATEMENT 1: Benefits or allowances which are intended for the furtherance of the interest of the employer's business or to ensure its smooth operations are likewise exempt from income tax. STATEMENT 2: Regular compensation - Supplemental compensation pertains to the fixed remunerations received by the employee every payroll period. STATEMENT 3: Compensation in kind is taxable at the fair value of the consideration received.

• FALSE-FALSE-TRUE

• TRUE-TRUE-TRUE

• FALSE-TRUE-FALSE

• TRUE-FALSE-TRUE

STATEMENT 1: Compensation in kind is taxable at the fair value of the consideration received. If received in shares, the fair value of the shares at the date services were provided is used. STATEMENT 2: Bonuses are supplemental or additional compensation. However, if they are linked solely to productivity under the productivity incentive plan of the employer pursuant to RA 6971, they should be considered as de minimis benefits. STATEMENT 3: Productivity incentive is anchored on improvements in the factors of production and is usually enjoyed collectively by employees due to the inherent difficulty of tracing productivity to individual performance. It is based upon cost savings; hence, it is payable even if the business poses a loss. Bonus is payable only when the business post a profit.

• FALSE-FALSE-TRUE

• TRUE-TRUE-TRUE

• TRUE-FALSE-TRUE

• TRUE-TRUE-FALSE

#1 is designated as part of the computation of

• 13th month pay and other benefits

• Regular income tax

• Final income tax

• De minimis

#2 is designated as part of the computation of

• De minimis

• Regular income tax

• 13th month pay and other benefits

• Final income tax

#4 is designated as part of the computation of

• Regular income tax

• Final income tax

• 13th month pay and other benefits

• De minimis

STATEMENT 1: Other fringe benefits for rank and file employees are treated as part of 'other benefits' under '13th month pay and other benefits'. STATEMENT 2: Other fringe benefits for managerial or supervisory employee are treated as fringe benefit subject to fringe benefit tax.

• FALSE-TRUE

• Both statements are TRUE

• Both statements are FALSE

• TRUE-FALSE