Practice question
A company pays a former employee a delayed amount solely for services performed during their established employment relationship. It argues that payment after departure necessarily converts the amount into independent professional income. Assume no retirement or other exclusion is involved. Which analysis is best?
- Departure always makes every later payment a gift
- Past employment services can still produce compensation; continuing employment at payment is not essential under the regulation
- All delayed payments are passive income
- Only payment on the final workday can be compensation
- The company may choose the classification merely by using a new voucher
Legal references
- RR 8-2018, Section 2: https://bir-cdn.bir.gov.ph/local/pdf/RR%20No.%208-2018.pdf
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