Tax Liability of Part-time Laborers

December 15, 1958 BIR RULING NO. 720-58 Mr. Claudio Arcayana Pan-ay, Clarin Misamis Occidental S i r : Your letter addressed to the Secretary of Finance, requesting among others, information as to whether or not part-time laborers are subject to the withholding tax on wages and whether or not persons who employ less than six regular and permanent and ten part-time employees are required to withhold the said tax, was referred to this Office for reply. In reply thereto, I have the honor to inform you as follows: Part-time laborers paid on the piece work basis are subject to the withholding tax on wages. However, remuneration paid for agricultural labor paid entirely in products of the farm where the labor is performed, or for casual labor not in the course of the employer's trade or business or for services rendered for a foreign government or international organization or for domestic services rendered in private homes are not considered was subject to withholding. (Article I, Supplement A to Title II of the Tax Code, as amplified by Section 2 of Revenue Regulations No. V-8-A) Employers are required to withhold the corresponding tax on the salaries which they pay to their employees irrespective of the number of full or part-time or permanent and temporary employees employed by them provided that the said salaries do not fall within the category of one of the exceptions mentioned in the preceding paragraph. As regards your queries concerning the implementation of the Social Security Act, please be informed that this Office is not the one charged with the duty of enforcing the provisions of the said Act. It is suggested that you address your queries on the matter to the Chairman of the Social Security Commission, Manila who has jurisdiction thereof. LexLib Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue