Do trade union benefits need to pay personal income tax?

Is it necessary to pay personal income tax for trade union benefits? It is a common problem in accounting work. The employee benefits issued by trade unions generally include condolences on holidays, getting married and having children in solatium, etc. In this paper, do you need to pay personal income tax for trade union benefits? Let's follow the Deep Space Network to learn about it!

A: Trade union benefits are not subject to personal income tax.

According to Article 4 of the Individual Income Tax Law of the People's Republic of China, the following personal income can be exempted from individual income tax:

1. Interest on national debt and financial bonds issued by the state;

2. Welfare fees, pensions and relief funds;

3. Subsidies and allowances issued according to the unified regulations of the state;

4. Bonuses in science, education, technology, culture, health, sports and environmental protection awarded by the provincial people's government, the State Council ministries and commissions, China People's Liberation Army units at or above the army level, and foreign and international organizations;

5. Military transfer fees, demobilization fees and retirement payments;

6. Insurance indemnity;

7. Income from embassies, consular officials, diplomatic representatives of consulates and other personnel of various countries that should be exempted from tax according to relevant regulations;

8. Resignation fee, basic pension, settling-in fee or retirement fee, retirement living allowance, retirement fee, etc. issued to cadres and workers according to the unified provisions of the state;

9. Income exempted from tax as stipulated in international conventions and agreements signed by the Government of China;

10. Other tax-free income stipulated by the State Council.

Is it necessary to pay a tax on employee benefits?

A: Many benefits of employees are subject to tax.

According to the Notice of State Taxation Administration of The People's Republic of China on Determining the Scope of Living Allowance (Guo Shui Fa [1998] 155), the following income does not belong to the scope of tax-free welfare expenses, and should be incorporated into the taxpayer's salary income and pay personal income tax:

1. Various subsidies and subsidies paid to individuals from welfare funds and trade union funds that exceed the proportion or base set by the state;

2. Subsidies and subsidies paid to employees of this unit from welfare funds and trade union funds;

3 units for individuals to buy cars, housing, computers and other expenses that do not belong to the nature of temporary living difficulties subsidies.

For example, in fact, the zongzi distributed by the company to employees during the Dragon Boat Festival and the moon cakes distributed by the company during the Mid-Autumn Festival are all subject to personal income tax.

How to make accounting entries for workers' union benefits?

Take the management department as an example. In the current month, welfare 400 yuan was paid in cash. The accounting entries are as follows:

1. Using the method of reimbursement, the treatment method of welfare funds:

Borrow: management fee-welfare fee 400.

Credit: cash 400

2. The accounting entries for welfare expenses in the form of wages are as follows:

Borrow: new remuneration payable to employees-welfare payable 400.

Credit: cash 400

Borrow: management fee-welfare fee 400.

Loan: new remuneration payable to employees-welfare payable 400.

3 in the form of wages for welfare expenses:

Borrow: management fee-welfare fee 500.