Practice question
At separation, an employee has excess tax withheld that is established to be refundable through the applicable payroll reconciliation and a returnable deposit. HR excludes both because neither is wages. The worker demands refund of all lawfully due tax as well. Which is sound?
- Account for the actual refundable excess and due deposit; the list does not require refund of correctly due tax.
- All taxes must be refunded regardless of liability.
- Neither due amount may be considered because it is not salary.
- The employer may retain every deposit permanently.
- The label final pay erases all tax law.
Legal references
- DOLE Labor Advisory 06-2020, January 31, 2020, Sections I-IV, archived signed original DOLE PDF: https://web.archive.org/web/20220809160012id_/https://www.dole.gov.ph/wp-content/uploads/2020/02/Labor-Advisory-No.-06-20-Guidelines-on-the-Payment-of-Final-Pay-and-Issuance-of-Certificate-of-Emplo.pdf
- DOLE January 2026 official confirmation of final-pay and COE rules: https://dole.gov.ph/news/final-pay-coe-must-be-released-on-time-dole/
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