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How is the year-end bonus deducted?
When the amount of year-end bonus exceeds the critical point even 1 yuan, the corresponding tax rate will be increased by one step, for example, from 3% to 10%. If it is not handled properly, the taxpayer's tax payment will increase greatly, resulting in the year-end bonus "more and less" and the actual income will fall instead of rising. So, how to issue the year-end award? How much to send? How to avoid tax risk?

Year-end bonus tax deduction standard:

According to the regulations of State Taxation Administration of The People's Republic of China, the annual one-time bonus obtained by taxpayers is calculated and taxed separately as one month's salary and salary income. "Divide the annual one-time bonus obtained by employees in the current month by 12 months, and determine the applicable tax rate and quick deduction according to their quotient", and then calculate the tax according to the "determined applicable tax rate and quick deduction". This method is only allowed to be used once for each taxpayer in a tax year.

Calculation method of year-end bonus personal income tax:

Method 1 of year-end bonus tax deduction: calculation of year-end bonus higher than (or equal to) expense deduction.

According to the year-end bonus tax regulations, when an individual obtains a one-time bonus for the whole year and the salary and salary income of the individual in the month when the bonus is obtained is higher than (or equal to) the expense deduction amount 1600 yuan stipulated in the tax law, the calculation formula is as follows:

The taxable amount is equal to the one-time bonus that an individual obtains in the current month multiplied by the deduction of the applicable tax rate, and the individual income tax shall be calculated and paid separately for the salary and salary income of the current month and the one-time bonus of the whole year.

Example 1: A's year-end bonus in 2006 is 12000 yuan, and the salary and salary income in that month is 2000 yuan, so the tax payable is 1 195 yuan.

1, 12000 divided by 12 equals 1000 (yuan), the applicable tax rate is 10%, and the quick deduction is 25.

2. The taxable amount of year-end bonus is 12000 multiplied by 10% minus 25 equals to 1 175 (yuan).

3. The taxable amount of wages and salary income in the current month is (2000 minus 1600) multiplied by 5% and equal to 20 (yuan).

4. The total tax payable in the current month is 1 175 plus 20 equals 1 195 (yuan).

Year-end bonus tax deduction method 2: the calculation that the personal salary and salary income in the month when the year-end bonus is obtained is lower than the expense deduction.

If the individual's salary and salary income is lower than the expense deduction stipulated in the tax law in the month when the year-end one-time bonus is issued, the balance of the year-end bonus after deducting the "difference between the individual's salary and salary income and expense deduction in the current month" shall be determined, and then the applicable tax rate and quick deduction of the year-end bonus shall be determined. At this time, the calculation formula is:

The tax payable is equal to (the year-end bonus obtained by the individual in the current month MINUS the difference between the salary, salary income and expense deduction of the individual in the current month) multiplied by the deduction of the applicable tax rate.

Example 2: The salary and salary income of the current month is less than 1600 yuan (only 1000 yuan), so the personal income tax should be calculated and paid after deducting the difference between the salary and expense deduction of the current month from the year-end one-time bonus 1600 yuan. The calculation process is:

The taxable income is 3,000-(1600-1000) = 2,400 yuan.

2400 divided by 12 equals 200 yuan, the applicable tax rate is 5%, and the quick deduction is 0;

The tax payable is 2400 times 5% equal to 120 (yuan).

Tax deduction method 3 for year-end bonus: the year-end bonus divided by 12 is less than 1600, and tax is also required.

In particular, it should be emphasized that the balance of the annual one-time bonus divided by 12, which is lower than the statutory fee deduction 1600 yuan should also be taxed.

Because the taxpayer's expense deduction has been deducted from the salary, dividing the annual bonus by 12 is mainly for determining the applicable tax rate and quick deduction, and cannot be used as a basis for judging whether to pay taxes.

Example 3: The one-time bonus of Party B is18,000 yuan, which is divided by 12, which is 1500 yuan. Although this is lower than the legal deduction of expenses 1600 yuan, the tax should be paid at the corresponding tax rate 1775 yuan.

18000 divided by 12 equals 1500 yuan, the applicable tax rate is 10%, and the quick deduction is 25.

The tax payable is 18000 times 10% minus 25 equals 1775 (yuan).

Year-end bonus tax deduction method 4: calculation of quarterly bonus

According to the regulations (Guo Shui Fa [2005] No.9), all bonuses obtained by employees except the one-off bonus for the whole year, such as semi-annual bonus, quarterly bonus, overtime bonus, advanced bonus and attendance bonus, are merged with the salary of the current month, and personal income tax is paid according to the tax law. You can't enjoy the preferential treatment that taxpayers calculate and pay as one month's salary and salary income after obtaining the one-time bonus for the whole year. Because in a tax year, for each taxpayer, this calculation method is only allowed to be used once.

Example 4: In April 2006, the wages and salaries were 5,000 yuan, and the quarterly bonus was 2,000 yuan. Because every time the quarterly bonus is issued, it must be combined with the salary income of that month.

The calculation process is:

The taxable income is (5000+2000)- 1600=5400 yuan, the applicable tax rate is 20%, and the quick deduction is 375.

The tax payable is 5400 times 20% minus 375, which equals 705 yuan.

Here, taxpayers are reminded that employees who get bonuses other than the one-time bonus for the whole year, such as semi-annual bonus, quarterly bonus, overtime award, advanced award, attendance award, etc., do not enjoy the year-end bonus tax preference.

Year-end bonus tax deduction method 5: calculation of personal income tax for year-end bonus without tax issued by the company

According to the "Official Reply of State Taxation Administration of The People's Republic of China on Individual Income Tax for Taxpayers Obtaining Annual One-time Bonus Income Excluding Tax" (Guo Shui Han [2005] No.715), if the individual income tax for the year-end bonus is borne by the unit, if the individual's monthly salary income is higher than (or equal to) the specified expense deduction, the calculation formula of individual income tax is as follows:

(1) According to the quotient of dividing the annual one-time bonus income excluding tax by 12, find the corresponding applicable tax rate A and quick deduction A;

(2) Annual one-time bonus income including tax = (annual one-time bonus income excluding tax-quick deduction A)÷( 1- applicable tax rate a);

(3) Re-search the applicable tax rate B and quick deduction B by dividing the annual one-time bonus income including tax by the quotient of 12;

(4) The tax payable is equal to the annual one-time bonus income including tax multiplied by the applicable tax rate b, the deceleration deduction b..

Example 5: Assume that the company gives each employee a one-time bonus excluding tax 10825 yuan, and the personal income tax paid by the company for each employee is 1 175 yuan. The calculation process is:

Step 1, according to the quotient of dividing the annual one-time bonus income excluding tax by 12, find the corresponding applicable tax rate A and quick deduction A;

10825 divided by 12 equals 902.08 yuan, and the corresponding applicable tax rate is 10%, and the quick deduction number is 25;

Step 2, according to the tax rate and quick deduction determined in step 1, convert the year-end bonus excluding tax into the year-end bonus including tax, that is, the year-end bonus income including tax = (year-end bonus income excluding tax-quick deduction A)÷( 1- applicable tax rate a);

Step 3, divide the year-end bonus income including tax by the quotient of 12, and re-find the applicable tax rate B and the quick deduction B;

12000 divided by 12 equals 1000 yuan, and the corresponding applicable tax rate is 10%, and the quick deduction b is 25;

The fourth step is to calculate the tax payable according to the determined tax rate and quick deduction, and the tax payable is equal to the year-end bonus income including tax multiplied by the applicable tax rate b and the quick deduction b.

Taxable amount equals 12000 times 10% minus 25 equals 1 175 yuan.

If the taxpayer's income from wages and salaries in the current month is lower than the deduction of expenses stipulated in the tax law 1600 yuan, the tax-free year-end bonus should be deducted from the difference between the income from wages and salaries in the current month and the deduction of expenses stipulated in the tax law, and then handled in the above manner.

Special note: According to (Guo Shui Han [2005] No.715), the personal income tax paid by an enterprise for an individual shall not be deducted before the enterprise income tax.

Two calculation formulas of year-end bonus tax deduction

One is, if the employee's salary income in the current month is higher than (or equal to) the expense deduction stipulated by the tax law.

The applicable formula is: the tax payable is equal to the one-time bonus of the employee in the current month multiplied by the deduction of the applicable tax rate;

In another case, if the employee's salary income in the current month is lower than the expense deduction stipulated by the tax law.

The applicable formula is: the tax payable is equal to (the employee gets a one-time bonus in the current month minus the difference between the employee's salary income and expense deduction in the current month) multiplied by the applicable tax rate deceleration deduction.

It is more economical to pay a tax with a double salary year-end award.