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Separation pay
Separation pay is taxable if
voluntarily availed of. Examples of involuntary separation: a. Death b. Sickness c. Disability d. Reorganization/merger of company e. Company at the brink of bankruptcy
Pension
This is stated allowance paid regularly to a person on his retirement or to his dependents on his death, in consideration of past services, meritorious work, age, loss, or injury
Overtime Pay
Premium payment received for working beyond regular hours of work which is included in the computation of gross salary of employee
Profit Sharing
It is the proportionate share in the profits of the business received by the employee in addition to his wages.
award for special services of employee, or suggestions to employer resulting in the prevention of theft and robbery
Beneficial payments
Such as where an
employer pays the income tax owed by an employee are additional compensation income
compensation Employee stock option Cancellation of debt Insurance premiums as compensation Income tax paid as compensation
Embezzled funds
Are income without consent (express or implied) with an obligation to repay.