My question is is this legal? Was this stated on the Tax code?

[messy_babycate]

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The company I am working for right now is my first employer so I am unsure if it works the same way with other companies. Here is the situation:

The company is asking it's employees to present a medical receipt worth Php 4,800 before the end of November. If ever an employee failed to submit this, an amount of Php 1,400 will be deducted from his/her December pay - that is said to be the tax on the medicines worth Php 4,800.

After regularization, an employee is entilted to receive an additional benefit allowance (which is in this case the medical allowance). I was regularized last May 2009 but they didn't ask for a receipt last year. I was wondering why they are asking for it now. Someone said it is on the confirmation papers we signed but we can't remember it anymore and we still have to scan our things on the house to look for it.

There has been no discussion between the company and the employees till now. A lot of employees sent the Finance Dept an email but nobody heard anything from them. I think they lack proper dissemination of information because they haven't even sent an email to everyone.

My question is is this legal? Was this stated on the Tax code? I checked my payslips and the medical allowance is under the non-taxable earnings which made me confused some more.

[greywolf]

i believe thats not legal. u can consult your lawyer to be sure.

[peewee_toot]

consult na lng jd og lawyer para malamdagan ka sis...

[messy_babycate]

according to my colleagues taxable jud daw na ang medical allowance... pero ang nakapait..ila gihatg ug tagi each payday pero ang deduction kay onetime lang so mabug-atan jud ang mga employees...

[adie0525]

as far as i know.. allowances and bonuses are not taxable until 30k per year.. if within that taxable year kai n.exceed na ug 30k tanan2x nimo bonus kay ull be taxed na on the next bonuses na imo madawat.. wa ko kasabot para nsaun ang deduction?ug nanu naa deduction?..

[badtrigger]

I agree with adie0525

[jackdi]

Sa ako pagsabot, this is a case of communication breakdown.

About sa imo Regularization Papers, for sure naa file ang HR ana.
Pwede ka mangayo og copy from them.

One the "medical allowance" issue, pangutan-a inyo Accounting ana.
Pasabton lagi ka if kahibaw sila sa ila gipangbuhat. Most probably ang Accouting Supervisor kahibaw jud ana.

Know the details first if you are planning to refer this to a lawyer.
Gasto pod baya na. Nya in the end, ok ra diay ang sitwasyon.

[princess_nyle]

murag wa pud ko kasabot ngano naay deduction. ask for explanation nganung ing-ana ing-ana ang pamaagi nila

[Tirong-say]

Dili gyud na taxable.
as per labor law;

Is it taxable?
Thirteenth month pay and other benefits amounting to P 30,000 and below are not subject to income tax. This means, if you receive P 40,000, the P10,000 excess is already taxable.

How to compute 13th Month Pay: DOLE Philippines

[rom69erz]

^^ well said... bunoses beyond 30k are subject to tax.