ACC101 Lecture Notes - Lecture 3: Internal Revenue Code, Philippine Health Insurance Corporation, Hazard Pay
Document Summary
Payroll, also called employee compensation or salaries, represent compensation paid to employees and workers in exchange for the work or labor rendered to the organization. Many organizations, most especially service organizations - profit oriented or not, carry salary or compensation expense as its largest or major operating expense, thus it has to be given careful attention. Compensation or salaries & wages refers to all renumeration for services performed by an employee for his employer under an employee- employer relationship unless exempted by the. National internal revenue code (nirc) and pertinent laws. (bir) Statutory benefits are extra compensation items that accrue to the employee but are not paid directly to the employee. Benefits include social health, life, and social security insurances. These benefits are employer"s expenses related to payroll, and it is also known as payroll taxes. Gross pay the total amount of salary, wages, commissions, and other employee compensation before taxes and other deductions.
