Step 1: Taxable income = total wages-social insurance premium-exemption amount.

Step 2: Personal income tax on wages = income tax payable × tax rate-quick deduction.

In general, wages can be calculated in different forms, such as hourly wages, monthly salaries and annual salaries. The total wages consist of six parts: hourly wages, piece-rate wages, bonuses, allowances and subsidies, overtime wages and wages paid under special circumstances.

It should be pointed out that:

(1) Social insurance usually refers to "five insurances and one fund" and "three insurances and one fund", mainly including: basic old-age insurance, unemployment insurance, basic medical insurance, work injury insurance, maternity insurance and housing accumulation fund.

(2) Deductible refers to the deductible amount, that is, the threshold of personal income tax, which is 5000 yuan from 20 18.

For example, Li's salary is 8,000 yuan per month, and he needs to buy five insurances and one gold 600 yuan, so the wage income tax he should pay can be calculated according to the above calculation method:

The income tax payable is 8000-600-5000 = 2400, and the personal income tax on wages is 2400 yuan ×3%=72 yuan, so the personal income tax on wages that Li needs to pay is 72 yuan.

The process of reporting and paying personal income tax on wages and bonuses refers to the process of individuals reporting and paying personal income tax on wages and bonuses to the tax authorities in accordance with relevant laws and regulations and certain procedures and requirements. First of all, individuals need to prepare relevant tax information, including salary, bonus income certificate, personal identification certificate and so on. Then, according to the regulations of the local tax authorities, choose the appropriate declaration method, which can be online declaration or offline declaration. Next, fill in the personal income tax return and fill in the relevant information such as salary and bonus income clearly. After completing the declaration, pay the corresponding personal income tax. The tax authorities will review the declaration information and verify the personal income tax. Finally, individuals pay taxes within the prescribed time limit. The correct implementation of individual income tax declaration and payment process is helpful to ensure that individuals pay taxes legally, abide by tax laws and safeguard their own rights and interests, and is also an important link in national tax management.

Legal basis:

Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC) (revised on 20 19): Chapter II Taxable Income Amount Section III Deduction of Article 48 Reasonable labor protection expenses incurred by enterprises is allowed.