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53 53  12. [[Income related to employment for pay>>doc:working:Glossary.Income related to employment for pay.WebHome]] includes: total cash remuneration; the value of remuneration in kind and services; profit-related pay; and [[employment>>doc:working:Glossary.Employment Work.WebHome]]-related social security benefits received either directly from the employer, from social security or compulsory insurance schemes or the State.
54 54  
55 55  * (a) Total cash remuneration, excluding [[employee>>doc:working:Glossary.Employees.WebHome]] contributions to compulsory employmentrelated social security and retirement income provision schemes (in order to avoid subsequent double counting of income), covers:
56 -** (i ) direct [[wages>>doc:working:Glossary.Earnings.WebHome]] and [[salaries>>doc:working:Glossary.Earnings.WebHome]] in cash for time (% style="color:#e74c3c" %)worked(%%) and (% style="color:#e74c3c" %)work(%%) done, including all incentive, shift and premium pay (e.g. for responsibility, unsanitary conditions, danger, (% style="color:#e74c3c" %)work(%%) at night, weekends and during other unsocial hours); cost-of-living, housing, transport, language and similar allowances; hardship, mobility, non-resident, expatriation, repatriation, post-adjustment and similar allowances; contractual and nonobligatory regular bonuses and premiums; tips and commissions (with and without a retainer); payments for odd [[jobs>>doc:working:Glossary.Work Activity.WebHome]] and duties and casual (% style="color:#e74c3c" %)work(%%). They also include fees and [[salaries>>doc:working:Glossary.Earnings.WebHome]] of managerial staff; remuneration of trainees and apprentices; and other components of direct [[wages>>doc:working:Glossary.Earnings.WebHome]] and [[salaries>>doc:working:Glossary.Earnings.WebHome]];
56 +** {{{(i)}}} direct [[wages>>doc:working:Glossary.Earnings.WebHome]] and [[salaries>>doc:working:Glossary.Earnings.WebHome]] in cash for time (% style="color:#e74c3c" %)worked(%%) and (% style="color:#e74c3c" %)work(%%) done, including all incentive, shift and premium pay (e.g. for responsibility, unsanitary conditions, danger, (% style="color:#e74c3c" %)work(%%) at night, weekends and during other unsocial hours); cost-of-living, housing, transport, language and similar allowances; hardship, mobility, non-resident, expatriation, repatriation, post-adjustment and similar allowances; contractual and nonobligatory regular bonuses and premiums; tips and commissions (with and without a retainer); payments for odd [[jobs>>doc:working:Glossary.Work Activity.WebHome]] and duties and casual (% style="color:#e74c3c" %)work(%%). They also include fees and [[salaries>>doc:working:Glossary.Earnings.WebHome]] of managerial staff; remuneration of trainees and apprentices; and other components of direct [[wages>>doc:working:Glossary.Earnings.WebHome]] and [[salaries>>doc:working:Glossary.Earnings.WebHome]];
57 57  ** (ii) remuneration for time not (% style="color:#e74c3c" %)worked(%%) comprises: annual vacation and other paid leave; public holidays and other recognized holidays; temporary halt or slow-down of production, short-time (% style="color:#e74c3c" %)working(%%); other time off granted with pay (e.g. for personal and family reasons, civic duties, union responsibilities, training and education); paid sick leave (where not regarded as social security benefit); severance and termination pay (where not regarded as social security benefit);
58 58  ** (ii) cash bonuses and gratuities include: all bonuses and gratuities, whether contractual or noncompulsory bonuses and premiums, year-end and seasonal bonuses (13th, 14th or 15th month's [[salary>>doc:working:Glossary.Earnings.WebHome]], additional vacation pay, etc.); exceptional payments for innovative ideas or (% style="color:#e74c3c" %)work(%%) methods; and similar ad hoc payments.
59 59  * (b) Remuneration in kind and services includes: traditional payments such as food, drink, fuel, clothing, footwear, etc.; the imputed rental value of free or subsidized housing; petrol and/or mileage allowance or the imputed value of free or subsidized similar benefits; the imputed value of business vehicles for [[employees>>doc:working:Glossary.Employees.WebHome]]' private use, telephone, electricity and similar utilities; free or subsidized transport to and from (% style="color:#e74c3c" %)work(%%) and free car parking; the value covered by the employer of: union, association and club fees, nurseries, crèches, etc. for [[employees>>doc:working:Glossary.Employees.WebHome]]' children, low- or zero-interest loans, subsidized mortgages, etc., the value of output from employer's process of production{{footnote}}In so far as the provision of this type of benefit is in line with the recommendations contained in the Protection of Wages Convention, 1949 (No. 95).{{/footnote}}; ' as well as the value of other payments in kind, including flexible benefits and other compensation packages for [[employees>>doc:working:Glossary.Employees.WebHome]].
60 60  * (c) Profit-related pay comprises: traditional profit-sharing bonuses; current receipts from profit-related schemes, participation, savings-related share option schemes and similar schemes; the initial market value of shares distributed to [[employees>>doc:working:Glossary.Employees.WebHome]] and owner-operators of corporations; other profit-related receipts.
61 61  * (d) [[Employment>>doc:working:Glossary.Employment Work.WebHome]]-related social security benefits include:
62 -** (i ) current receipts from the employer: e.g. family, dependants' and similar allowances; educational allowances; payments in respect of absence from (% style="color:#e74c3c" %)work(%%) due to sickness, maternity, occupational injury or disease, etc. (which compensate, in part or in full, for loss of [[earnings>>doc:working:Glossary.Earnings.WebHome]]); payments in respect of temporary or partial lay-off or [[unemployment>>doc:working:Glossary.Unemployment.WebHome]] (which compensate, in part or in full, for loss of [[earnings>>doc:working:Glossary.Earnings.WebHome]]); as well as compensation for medical expenditure, provision of free health care (homes, clinics, health services, etc.) and other social security payments received from the employer;
62 +** {{{(i)}}} current receipts from the employer: e.g. family, dependants' and similar allowances; educational allowances; payments in respect of absence from (% style="color:#e74c3c" %)work(%%) due to sickness, maternity, occupational injury or disease, etc. (which compensate, in part or in full, for loss of [[earnings>>doc:working:Glossary.Earnings.WebHome]]); payments in respect of temporary or partial lay-off or [[unemployment>>doc:working:Glossary.Unemployment.WebHome]] (which compensate, in part or in full, for loss of [[earnings>>doc:working:Glossary.Earnings.WebHome]]); as well as compensation for medical expenditure, provision of free health care (homes, clinics, health services, etc.) and other social security payments received from the employer;
63 63  ** (ii) current [[employment>>doc:working:Glossary.Employment Work.WebHome]]-related social security benefits received from social security or compulsory insurance schemes or the State: e.g. family, dependants', educational and similar allowances; payments in respect of absence from (% style="color:#e74c3c" %)work(%%) due to sickness, maternity, occupational injury or disease, etc. (which compensate, in part or in full, for loss of [[earnings>>doc:working:Glossary.Earnings.WebHome]]); payments in respect of temporary or partial lay-off or [[unemployment>>doc:working:Glossary.Unemployment.WebHome]] (which compensate, in part or in full, for loss of [[earnings>>doc:working:Glossary.Earnings.WebHome]]); as well as compensation for medical expenditure, provision of free health care (homes, clinics, health services, etc.) and other social security and assimilated payments for which the [[employment>>doc:working:Glossary.Employment Work.WebHome]] status is a condition of receipt;
64 64  ** (iii) current social security benefits received as a result of former [[employment>>doc:working:Glossary.Employment Work.WebHome]]: e.g. [[unemployment>>doc:working:Glossary.Unemployment.WebHome]] compensation; severance, termination and redundancy pay; occupational and retirement pensions and assimilated benefits.
65 65  
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132 132  
133 133  31. The choice of an accounting technique to measure [[income related to employment for profit>>doc:working:Glossary.Income related to employment for profit.WebHome]] should take into account the circumstances in which those [[employed>>doc:working:Glossary.Persons in Employment.WebHome]] for profit operate their business and the measurement objective. Two major techniques can be used:
134 134  
135 -* (i ) Accruals accounting, which measures the profit earned during the reference period, by taking into account receipts and expenses relevant to that period, irrespective of whether or not they have actually been received or defrayed. This technique measures the profitability or economic performance of the enterprise and, as such, could be favoured when the objective is to measure the income-generating capacity of [[jobs>>doc:working:Glossary.Work Activity.WebHome]] for profit. It is also the approach favoured by the SNA.
135 +* {{{(i)}}} Accruals accounting, which measures the profit earned during the reference period, by taking into account receipts and expenses relevant to that period, irrespective of whether or not they have actually been received or defrayed. This technique measures the profitability or economic performance of the enterprise and, as such, could be favoured when the objective is to measure the income-generating capacity of [[jobs>>doc:working:Glossary.Work Activity.WebHome]] for profit. It is also the approach favoured by the SNA.
136 136  * (ii) The cash-flow technique, which measures actual cash received (including the value of production for own use) and paid out (including the value of production given out free or at reduced prices) during the reference period. This technique provides a better indicator of the amounts of income actually available to [[workers in employment for profit>>doc:working:Glossary.Workers in employment for profit.WebHome]] to meet living expenses. Where data on [[employment>>doc:working:Glossary.Employment Work.WebHome]]-related income are furnished by those in [[employment>>doc:working:Glossary.Employment Work.WebHome]] for profit themselves in the absence of business accounts, it is generally easier for them to provide a simple summary of cash received and paid in the assessment period (i.e. gross receipts minus expenditure).
137 137  
138 138  32. These different techniques may produce different results. In determining the method used to record [[income related to employment for profit>>doc:working:Glossary.Income related to employment for profit.WebHome]], consideration should be given to the procedures recommended by national tax authorities, the sources of data and the methods of data collection.