The accumulative withholding method is not applicable to labor remuneration.

The accumulative withholding method is not applicable to labor remuneration. According to the tax law of China, the income from labor remuneration usually adopts the method of withholding in advance, not the cumulative withholding method. The cumulative withholding method is mainly applicable to the income from wages and salaries of individual residents, that is, when withholding agents pay wages and salaries to individual residents, they need to calculate the withholding tax according to the cumulative withholding method and apply for the full withholding declaration of all employees on a monthly basis. The income from labor remuneration is withheld and paid in advance according to the actual situation of each payment and the corresponding tax rate, and is not calculated cumulatively.

Tax management of labor remuneration;

1, the definition of labor remuneration: refers to the income obtained by individuals from providing labor services, including the income from the production and operation of individual industrial and commercial households, as well as the income from contracting and leasing operations;

2. Taxpayer: usually refers to individuals who receive remuneration for labor services, including resident individuals and non-resident individuals;

3. Tax rate and quick deduction: According to the nature and amount of labor remuneration, different tax rates and quick deduction may be applied;

4. Declaration and payment: After obtaining the remuneration for labor services, individuals should declare to the tax authorities and pay the corresponding taxes within the specified time;

5. Withholding agent: usually a unit or individual who pays remuneration for labor services and is responsible for withholding and paying taxes;

6. Relevant tax relief policies: The tax law may stipulate that income from labor remuneration can enjoy tax relief under certain circumstances.

To sum up, the tax law of China stipulates that the income from labor remuneration does not use the cumulative withholding method, but withholding tax in advance by time, which is different from the cumulative withholding method of individual wages and salaries, which requires withholding agents to accumulate monthly and withhold taxes in full when paying, which reflects the differences in tax treatment of different income types in the tax law.

Legal basis:

Individual Income Tax Law of the People's Republic of China

Article 11

Individual income tax shall be calculated on an annual basis when individual residents obtain comprehensive income; If there is a withholding agent, the withholding agent shall withhold the advance tax on a monthly basis or every time; If it is necessary to settle accounts, it shall be settled within March 1st to June 30th of the following year. The withholding and prepayment measures shall be formulated by the competent tax authorities of the State Council. The calculation formula is: withholding tax amount in current period = (cumulative prepaid taxable income multiplied by tax rate-quick deduction)-withholding tax amount.