Tax Planning In Malaysia
Employment is a contract between two parties, one being the employer and the other being the employee. In this relationship, the employer conceives of a productive activity, generally with the intention of creating financial revenues, and the employee contributes labour to the enterprise, usually in return for payment. Employment also exists in the public, non-profit and household sectors. An employer is any entity that hires employees; it can be a person, a company, an organisation or a corporation. There are a number of employment arrangements available, including full time employment, part time employment, casual employment, fixed term or contract employment, apprenticeships, traineeships, and probationary works. Employment allows an individual to be a valuable contributor to society and the economy, while providing for the needs of those under his/ her care. Being employed can also provide a sense of personal worth to the individual, and is a means for personal development.
1.1.1 Characteristic of Employment
There are few factors that link to make a person to be an employee such as personal services, presence of control, equipment, financial risk, basis of payment, benefits, sense of belonging to the organization, nature of contract, and intention of the parties.
When comes to employment, the duties will be perform by the employees themselves which means providing the service or task assigned by themselves but they also can hire another person to complete the task who are qualified to the job assigned. Meanwhile control is where employers take control over the employees in directing them the way to accomplish and perform a job.
Employment also exits when the employees use tools provided by the employer to perform a duty or task. As for self-employed individuals, they use their own tools.
Financial risk is where as for self employed they faced the risk for expected return, but as for employees, they only share the profits but not the risks. A payment is given for the employees in a fixed rate of salary either on a monthly or weekly basis. As for self employed individuals, they are given a professional fee upon the completion of the task or progressively throughout the engagement based upon agreed deliverables.(责任编辑：cinq)