13 Questions
Which of the following best defines an employer according to the given text?
Any person for whom an individual performs service as an employee
Who among the following is NOT considered an employee based on the given text?
Officers of a corporation
What is a key element of the employer-employee relationship as per the given text?
Power to control the employee on the means and methods by which the work is accomplished
Who has the power to retrench or terminate an employee for just or authorized causes?
Employer
What distinguishes an employer-employee relationship from an independent contract for the provision of services according to the text?
Selection and engagement of employees
What type of arrangement is not considered an employer-employee relationship according to the given text?
An independent contract for the provision of services
Which type of employees are those who effectively recommend 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
What type of employees are exempt from income tax on their compensation?
Minimum wage earners
What does gross compensation income generally include?
Only remunerations received under an employer-employee relationship
Which of the following is considered as non-taxable compensation?
Exempt benefits under the NIRC and special laws
What does exempt benefits under the NIRC and special laws include?
Retirement benefits under RA 7641
Who are eligible for COVID-19 benefits under RA 11494 (BAYANIHAN 2)?
Health workers who have contracted COVID-19 in the line of duty
What does minimum wage earner refer to?
An employee paid the minimum wage as set by statutory regulations
Study Notes
Employer and Employee Relationships
- An employer is defined as any person, corporation, partnership, or entity that exercises control over the payment of wages and has the power to hire, discharge, and supervise employees.
Employee Classification
- Not considered an employee: a person who works independently and is not subject to the control of the employer.
Employer-Employee Relationship
- A key element is the exercise of control by the employer over the employee.
Termination of Employment
- The employer has the power to retrench or terminate an employee for just or authorized causes.
Employer-Employee vs. Independent Contract
- The key distinguishing factor is the employer's control over the employee; an independent contractor has more autonomy.
Employer-Employee Relationship Exclusion
- An arrangement where the worker is not subject to the control of the employer is not considered an employer-employee relationship.
Managerial Employees
- Those who have the authority to recommend managerial actions and exercise independent judgment are considered managerial employees.
Tax Exemptions
- Certain employees are exempt from income tax on their compensation, such as minimum wage earners.
Gross Compensation Income
- Generally includes all earnings, including bonuses, overtime pay, and commissions.
Non-Taxable Compensation
- Certain benefits, such as meal allowances, are considered non-taxable compensation.
Exempt Benefits
- Include benefits under the National Internal Revenue Code (NIRC) and special laws, such as those related to health insurance.
COVID-19 Benefits
- Eligible individuals for COVID-19 benefits under RA 11494 (BAYANIHAN 2) include those who meet specific criteria.
Minimum Wage Earner
- Refers to an employee who receives the lowest wage permitted by law.
Test your knowledge of the employer-employee relationship and compensation income. This quiz covers the elements of employer-employee relationship, classifications of employees, and the definition of compensation income.
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