Cash Conversion of Unused Sick Leave, is it taxable?

[me&myself]

guys, ask ko lang kung talaga bang taxable ang cash conversion ng unused sick leave? taxable kasi sa company namin eh. Feeling ko dapat hindi kasi one of the benefits yun di ba?:confused:

[manok00]

guys, ask ko lang kung talaga bang taxable ang cash conversion ng unused sick leave? taxable kasi sa company namin eh. Feeling ko dapat hindi kasi one of the benefits yun di ba?:confused:

Ask you HR first on the policy of conversion.
Some companies are taxable some are not.

[me&myself]

i just received the cash conversion of my unused sick leave, and it's taxable. my question is, bakit hindi pare-pareho, may mga companies na taxable, meron ding hindi? ano ba talaga ang dapat?

[council]

By law, leave conversions in excess of 10 days are considered taxable.

If the employee receives his leave conversion in full (untaxed) then it may be assumed that the company will shoulder the relevant tax (fringe benefit tax, income tax, etc).

[manok00]

In one semiconductor manufacturing I have worked before. VL conversion is taxable while SL is non-taxable.

I have ask them why?
Answered: Because the VL's are entitled to be used not by collecting it. While SL is a need, so if you dont' get sick in a year. You have the benefit of a SL conversion without taxes. Parang incentive for being healthy employee in a year.

[pagie]

By law, leave conversions in excess of 10 days are considered taxable.

If the employee receives his leave conversion in full (untaxed) then it may be assumed that the company will shoulder the relevant tax (fringe benefit tax, income tax, etc).

nice post. both SL and VL ba yan?

[mikki_pretty]

In one semiconductor manufacturing I have worked before. VL conversion is taxable while SL is non-taxable.

I have ask them why?
Answered: Because the VL's are entitled to be used not by collecting it. While SL is a need, so if you dont' get sick in a year. You have the benefit of a SL conversion without taxes. Parang incentive for being healthy employee in a year.

i think this should be followed by the philippine labor law.. wala lang.. feeling ko lang naman e.. :D

[etxetera]

In one semiconductor manufacturing I have worked before. VL conversion is taxable while SL is non-taxable.

I have ask them why?
Answered: Because the VL's are entitled to be used not by collecting it. While SL is a need, so if you dont' get sick in a year. You have the benefit of a SL conversion without taxes. Parang incentive for being healthy employee in a year.

Maganda ang logic sa company na ito unlike sa amin you can only get a 1k incentive if you don't use a single sick leave pero ang vacation leave di convertible sa cash kaya kailangan ubusin at mag-absent :lol: