First, the specific content and nature of welfare

Employee benefits may include various types, such as holiday solatium, year-end bonus, housing subsidies, transportation subsidies, catering subsidies, etc. Some of these benefits belong to monetary benefits and some belong to non-monetary benefits. Monetary benefits such as bonuses and subsidies are usually regarded as part of wages and need to be included in individual taxes; Non-monetary benefits such as dormitories and canteens provided may not be included in the tax.

Second, the provisions of the tax law and tax-free benefits

According to the Individual Income Tax Law of the People's Republic of China and its related implementing regulations, some employee benefits are tax-free items. For example, subsidies and allowances issued in accordance with state regulations, such as one-child subsidies, child care subsidies, travel expenses subsidies, and meals missed subsidies, are not included in personal income tax. In addition, some specific social insurance and housing accumulation funds are also tax-free.

III. Tax Treatment and Compliance

Enterprises should strictly follow the provisions of the tax law when calculating employees' salaries and benefits. For benefits that need to be included in individual tax, tax treatment should be carried out in a timely and accurate manner to ensure that employees' personal income tax declaration and payment meet the requirements of laws and regulations. At the same time, enterprises should also strengthen internal management and supervision to avoid tax risks caused by improper welfare distribution.

To sum up:

Whether it is necessary to calculate tax on employee benefits payable depends on the specific content and nature of benefits and the provisions of tax laws. Most monetary benefits need to be included in personal income tax, while some specific types of non-monetary benefits and subsidies may be tax-free. Enterprises should strictly abide by the provisions of the tax law to ensure compliance when dealing with employee welfare tax issues.

Legal basis:

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

Article 2 stipulates:

Individual income tax shall be paid for the following personal income:

(1) Income from wages and salaries;

(2) Income from remuneration for labor services;

(3) Income from remuneration;

(4) Income from royalties;

(5) Operating income;

(6) Income from interest, dividends and bonuses;

(7) Income from property lease;

(8) Income from property transfer;

(9) Accidental income.

Individual income tax shall be calculated on a consolidated basis according to the tax year when individual residents obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income); Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly basis or by sub-item. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.

Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China

Article 6 stipulates that:

The scope of individual income stipulated in the individual income tax law:

(1) Income from wages and salaries refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment or employment.