There was a time when working from home was just a vivid dream, but recently, there’s been a surge of jobs you can do from your own place. As the world becomes more connected, businesses can now explore work from home arrangements for their employees. People that aren’t on the work floor or do work […]
The new Labor Advisory No. 6 Series of 2020, was released last January 31, 2020 by The Department of Labor and Employment. It tackles the guidelines on the payment of Final Pay and Issuance of Certificate of Employment of an employee. Who can request for a Certificate of Employment? A previous or current employee may […]
Is your current retirement plan still relevant?
What are the reasons for the increase in the retirement liability?
The ANC is the required current contribution of the Company for the service to be rendered by the employees for this year.
The PSL is the liability of the company for the services rendered by their employees from date of hire to valuation date. The PSL can be paid in full or in amortized amount over a 3-year, 5-year, etc. but not to exceed the remaining working life of the employee group.
Below is an excerpt about International Accounting Standards (IAS) 19 taken from Deloitte. IAS 19 Employee Benefits (amended 2011) outlines the accounting requirements for employee benefits, including short-term benefits (e.g. wages and salaries, annual leave), post-employment benefits such as retirement benefits, other long-term benefits (e.g. long service leave) and termination benefits. The standard establishes the […]
RA 7641 prescribes minimum retirement benefit that companies must pay eligible retiring employees.
Since RA 7641 does not require companies to set up formal retirement plans, why, then, should the consider doing so?
We outline the process of creating a retirement plan and securing a tax qualification with this plan.