Income Tax Chapter 10

Employer

refers to any person for whom an individual performs any service of whatever nature as employee of such person.

Employee

refers to any individual who is a recipient of wages and includes officer, employee or elected official of the Government of the Philippines or any political subdivisions, agency or instrumentality thereof. The term also includes an officer of a corporation.

Selection and engagement of employees

There is a screening process for employees to hire

Payment of wages

The employer usually fixes and controls the payment or wages

Power of dismissal

Employer has power to retrench or terminate employees when incurring heavy losses or other reasonable basis

Power of control

The employer has power to control the employee on the