1. Stipends received by resident physicians during their intensive training in the residency program of a hospital are subject to basic and final withholding taxes. 2. Remuneration for services constitutes compensation income even if the relationship of employer and employee does not exist any longer at the time when payment is made between the person in whose employ the services had been performed and the individual who performed them. A= 1st statement is true, second statement is false. B= 1st statement is false, second statement is true. C= Both statements are false. D- Both statement are true.
1. Stipends received by resident physicians during their intensive training in the residency program of a hospital are subject to basic and final withholding taxes. 2. Remuneration for services constitutes compensation income even if the relationship of employer and employee does not exist any longer at the time when payment is made between the person in whose employ the services had been performed and the individual who performed them. A= 1st statement is true, second statement is false. B= 1st statement is false, second statement is true. C= Both statements are false. D- Both statement are true.
Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses
Section: Chapter Questions
Problem 13DQ
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Question
Transcribed Image Text:1. Stipends received by resident physicians during their intensive training in the residency program of a hospital are subject to basic
and final withholding taxes.
2. Remuneration for services constitutes compensation income even if the relationship of employer and employee does not exist any
longer at the time when payment is made between the person in whose employ the services had been performed and the individual
who performed them.
A= 1st statement is true, second statement is false.
B= 1st statement is false, second statement is true.
C= Both statements are false.
D= Both statement are true.
D
B
O A
OC
Transcribed Image Text:1. In general, fixed or variable allowances which are received by a public officer or employee or officer or employee of private entity, in
addition to the regular compensation, fixed for his position or office, is compensation subject to income tax and consequently,
creditable withholding tax on compensation income.
2. Representation and Transportation Allowances (RATA) granted under Section 34 of the General Appropriations Act to certain
officials and employees of the government are considered reimbursements for the expenses incurred in the performance one's duties
rather than as additional compensation.
A= 1st statement is true, second statement is false.
B= 1st statement is false, second statement is true.
C= Both statements are false.
D= Both statement are true.
OD
OC
OB
O A
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