Compensation Income

Question 1

Elements of employee-employer relationship

Answer 1

1. Selection and engagement of employees
2. Payment of wages
3. Power of dismissal
4. Power of control

Question 2

Not considered employees

Answer 2

Consultant
Directors w/out management function
Talents and artists on TV shows or radio broadcasts

Question 3

Minimum wage earners are:

Answer 3

EXEMPT from income tax on their compensation

Question 4

Regular employees are:

Answer 4

Subject to regular progressive income tax

Question 5

TAX MODEL ON COMPENSATION INCOME

Answer 5

Gross Compensation Income
Less: Non-taxable compensation
Taxable compensation income

Question 6

Non taxable compensation