1, the employer deducts personal income tax from the employee's salary and pays it to the tax authorities;

2. Calculation formula of tax payable: salary payable minus four gold and minus the threshold of 5000 yuan;

3. The employee's actual salary is due salary minus four gold and tax payable;

4. Personal income tax adopts the excessive progressive tax rate, and the threshold is 5,000 yuan per month.

Calculation method of individual tax:

1, determine the taxpayer's income category;

2. Calculate the taxable income;

3. Apply tax rate and quick deduction to calculate tax amount;

4. Deduct the tax paid in advance to get the tax payable (refunded).

To sum up, withholding tax means that the employer calculates the tax payable after deducting the four gold and the threshold of 5,000 yuan from the salary payable, and pays it to the tax authorities after deducting it from the employee's salary, so as to ensure that the employee's actual salary is the amount after deducting the four gold and taxes, and the tax calculation follows the principle of excessive progressive tax rate.

Legal basis:

Interim Provisions on Wage Payment

Article 15

The employing unit shall not deduct the wages of workers. In any of the following circumstances, the employer may withhold the wages of the workers:

(1) Personal income tax withheld and remitted by the employer;

(two) the social insurance premiums withheld and remitted by the employer and borne by the individual workers;

(3) alimony and alimony required to be withheld in court judgments and rulings;

(four) other expenses that can be deducted from the wages of workers as stipulated by laws and regulations.

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. Where individual residents provide special additional deduction information to withholding agents, withholding agents shall deduct the withholding tax in accordance with the provisions when withholding it monthly, and shall not refuse. If a non-resident individual has a withholding agent for income from wages and salaries, income from remuneration for labor services, income from remuneration for manuscripts and royalties, the withholding agent shall withhold and pay taxes on a monthly basis or every time without making final settlement.