set 2 : types of compensation Flashcards
fixed hourly, daily or monthly rate
basic pay or regular wage
Salaries and Wages
earned by agents or brokers when a sale is made or deal is closed
Commissions
received for holding another position within the company
Fees
a voluntary payment with no fixed amount
Hononaria
additional compensation by working excess of 8 hours per day
Overtime pay
between 10 pm - 6 am should be paid not less than 10% of its regular wage
Night Shift Differential
additional pay for working on holiday
Holiday pay
additional compensation who works under hazardous conditions
Hazard pay
additional cash or non cash incentives provided to employees over and above their salary compensation
Allowances
cost-of-living
Allowances
ordinary and necessary in the pursuit of trade or business for which an employee is required to account
Non-taxable Allowances
sole benefit of the employer
Non-taxable Allowances
RATA
Representation and Transportation Allowance
PERA
Personal Economic Relief Allowances
considered reimbursement for expenses incurred while performing government duties
Non-taxable Allowances
de minimis
Non-taxable Allowances
given to all rank-and-file employees in the private sector who have worked at least one (1) month during the calendar year
13th Month Pay and Other Benefits
non-performance-based bonus
(Christmas bonus and 14th month pay
13th Month Pay and Other Benefits
performance-based bonus
13th Month Pay and Other Benefits
Collective Bargaining Agreement (CBA)
13th Month Pay and Other Benefits
performance incentive scheme exceeding 10 000 is taxable
13th Month Pay and Other Benefits
gifts in cash or in kind
13th Month Pay and Other Benefits
excess de minimis
13th Month Pay and Other Benefits
relatively small value given by an employer merely as a means of promoting the health, goodwill, contentment, or efficiency of its employees
De Minimis Benefits
not subject to income tax as well as to withholding tax on compensation income
De Minimis Benefits
non-taxable threshold
90 000
amount given who separated voluntarily (taxable) or involuntary (non-taxable)
Separation Pay
amount given to qualified employees upon retirement
Retirement Pay
