This concept plays an important role in the labor law and tax law system, which is directly related to the actual income of employees and the tax burden of enterprises.
In the process of salary payment, the pre-tax salary of employees is usually calculated first, which is the total salary that employees deserve according to the salary standard stipulated by the contract or the company. However, this is not the actual income that employees can finally get. Pre-tax wages also need a series of deductions, including personal income tax, social insurance premium, housing provident fund and so on. The deduction standards and methods of these taxes and fees are determined according to national laws, regulations and relevant policies.
Personal income tax is one of the main taxes and fees that employees need to pay. According to the provisions of the national tax law, the object of personal income tax collection is the income obtained by individuals from work, labor, remuneration and so on. When calculating personal income tax, it will be calculated according to a certain tax rate and quick deduction, and then deducted from the employee's pre-tax salary.
In addition to personal income tax, social insurance premiums and housing provident fund are also important deductions for employees' wages. Social insurance premiums include endowment insurance, medical insurance and unemployment insurance. These expenses are paid by employees and enterprises to ensure the social welfare and rights of employees. Housing accumulation fund is a system to help employees accumulate housing funds, and it is also a part that must be deducted from employees' wages.
After deducting these taxes and fees, the actual income that employees can finally get is the after-tax salary. After-tax salary is the actual disposable income of employees, which is used to pay for daily living expenses, savings and investment.
To sum up:
After-tax salary is the salary income that employees actually get after deducting various taxes and fees, including personal income tax, social insurance premium and housing accumulation fund. After-tax salary is the actual disposable income of employees, and its calculation method and standard are stipulated by national laws, regulations and relevant policies.
Legal basis:
Individual Income Tax Law of the People's Republic of China
Article 2 provides that:
The following personal income shall be subject to personal income tax:
(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 residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. 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.
People's Republic of China (PRC) social insurance law
Article 10 stipulates:
Employees shall participate in the basic old-age insurance, and the employer and employees shall jointly pay the basic old-age insurance premium.
Individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employer and other flexible employees can participate in the basic old-age insurance, and individuals pay the basic old-age insurance premium.
The measures for the endowment insurance of civil servants and staff managed by reference to the Civil Service Law shall be formulated by the State Council.
Regulations on the administration of housing provident fund
Article 19 stipulates:
The housing provident fund paid by individual employees shall be withheld and remitted from their wages by their units every month.
The unit shall remit the housing provident fund paid by the unit and remitted for the employees to the housing provident fund account within 5 days from the date of monthly payment of employees' wages, and the entrusted bank shall include it in the employee housing provident fund account.