A gratuity is taxable in all of the following situations except when: A. The gratuity is paid at the end of the contract period, but there is no termination of employment. B. Payment is made through the annual budget of certain government entities or statutory bodies. C. The amount paid is considered by the contractor General to be a periodic payment D. The payment is made in lieu of a pension and it is in the form of a lump sum paid out of the consolidated fund.

A gratuity is taxable in all of the following situations except when: A. The gratuity is paid at the end of the contract period, but there is no termination of employment. B. Payment is made through the annual budget of certain government entities or statutory bodies. C. The amount paid is considered by the contractor General to be a periodic payment D. The payment is made in lieu of a pension and it is in the form of a lump sum paid out of the consolidated fund.

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter5: Unemployment Compensation Taxes

Section: Chapter Questions

Problem 6QR

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