How is the calculation of the salary year end bonus stipulated?

The annual one-time bonus tax method can only be enjoyed by taxpayers once in a tax year.

According to Article 1 of the Notice on Issues Concerning the Convergence of Preferential Policies after the Revision of the Individual Income Tax Law No. 164 of the Ministry of Finance and Taxation 2018, if a resident individual obtains an annual one-time bonus, in accordance with the provisions of the Notice of the State Administration of Taxation on Issues Concerning the Adjustment of the Method of Calculating and Levying Individual Income Tax on Individuals Obtaining Annual One-time Bonus, etc. (Guo Shui Fa 2005 No. 9), before December 31, 2021, it will not be included in the comprehensive income of the current year, and the annual one-time bonus income will be divided by the amount obtained by 12 months. According to the monthly converted comprehensive income tax rate table attached to this notice (the figure below is the monthly tax rate table), the applicable tax rate and quick deduction are determined, and the tax is calculated separately.

If the year-end bonus is paid for the second time in 2018, the year-end bonus must be incorporated into the salary income in December 2018 and the individual income tax of the current month will be calculated together.

Note: Residents who receive a one-time bonus for the whole year can also choose to incorporate it into the comprehensive income of the current year for tax calculation. From January 1, 2022, the annual one-time bonus obtained by resident individuals shall be included in the comprehensive income of the current year for calculation and payment of individual income tax.

For example, Zhang's salary in March is 5,000, and the taxable income of the year-end bonus is still negative at the end of December, and of course the individual income tax is also 0. That is to say, for most salary clusters with a few thousand wages, the year-end bonus is 0 taxes.

Li's salary in April is 10,000, and the taxable income of the year-end bonus at the end of December is 34,000, not exceeding 36,000, so the year-end bonus is also calculated at 3%, that is, = 10,000 * 3% = 300

Wang's salary in May is 30,000, and the taxable income of the year-end bonus at the end of December is 274,000, not exceeding 300,000, so the year-end bonus is also calculated at 10%, that is, = 10,000 * 20% = 2,000

Li's salary in June is 100,000, and the taxable income of the year-end bonus at the end of December is 1,114,000, more than 960,000, so the year-end bonus is calculated at 45%, that is, = 10,000 * 45% = 4,500

The amount of tax paid for the year-end bonus is directly related to the employee's salary, and the applicable tax rate depends on the size of the taxable income at the end of December. For the same prize amount, the tax amount may not be the same.

Calculation formula: tax payable Annual one-time bonus income Applicable tax rate Quick deduction.

The calculation of the year-end bonus is based on the company's own regulations, some companies pay double the salary, some pay twice the salary, and some pay hundreds of thousands, so it depends on the company's own regulations!

Every company is different.

But generally speaking, the year-end bonus is about two months' salary.

Most companies will calculate the year-end bonus based on the length of time you have worked, if you have worked for half a year, then it is one month's salary, if it is a full year, it is two months' salary.

Also, if there is a scoring criterion, there will be performance in it.

If the salesman is a salesman, it will be paid according to the performance.

The state stipulates that wages shall be calculated by agreement between the employer and the employee, and the year-end bonus is not stipulated by law, but by the rules and regulations of the employer, and the employer may also pay the year-end bonus without spurring. If the wage agreement is not clear and a dispute arises, the employer and the employee may renegotiate; If the negotiation fails, the provisions of the collective contract shall apply; Where there is no collective contract or the collective contract does not stipulate labor remuneration, equal pay for equal work shall be implemented.

[Legal basis].Article 47 of the Labor Law of the People's Republic of China.

Employers shall, in accordance with the characteristics of their production and operation and economic benefits, independently determine their wage distribution methods and wage levels in accordance with the law.

Article 50. Wages shall be paid to the worker in monetary form on a monthly basis. Wages shall not be deducted or unjustifiably delayed.

Every company has a different way of accounting for year-end bonuses, and here are a few common ones.

1. Monthly salary. That is, the year-end bonus is calculated according to the salary of 1 to 3 months or more months, and it should be noted here that all monthly wages should be specific to the basic salary of each month, or the salary that should be paid, and the general salary is mainly composed of basic salary, performance bonuses and various subsidies;

2. Annual income subsidy. That is to say, in the labor contract agreed in the annual salary supplement, this way is to allow the employee not to leave the work period, the calculation of the year-end bonus, the simplest, is the amount agreed in the contract, the main reason for its fluctuation is related to the employee's performance in the current year, generally the fluctuation will not be too large;

3. Determine the year-end bonus according to the company's development. This type of year-end bonus, the most troublesome to calculate, mainly according to the company's economic benefits of the year to calculate, the general enterprise algorithm is, according to the company's annual income, take out a certain ratio as the year-end bonus, and then according to the rank, position, salary regulations, etc., divided, at the same time, but also combined with the performance coefficient of the employee in the current year.

Is the year-end bonus part of the salary?

In reality, there are roughly three types of forms for the determination of year-end bonuses by both parties to the labor relationship: labor contract agreement; Rules and regulations; There are three different forms of "red envelopes" that are decided by the business owner.

To sum up, the year-end bonus belongs to wages, so for the year-end bonus obtained by the worker at the end of each year, it is also necessary to pay personal income tax with pants, as for the specific amount of tax to pay, it is necessary to calculate the amount of the year-end bonus obtained by the employee according to the provisions of the law. Hope it helps. Article 47 of the Labor Contract Law of the People's Republic of China stipulates that the monthly wage of economic compensation shall be calculated according to the wages due to the employee, including hourly wages or piecework wages, as well as monetary income such as bonuses, allowances and subsidies.

Since the year-end bonus is a kind of bonus and a kind of monetary income, the year-end bonus is naturally included in the calculation base of economic compensation.

Wages include: (hourly wages, piecework wages, bonuses, allowances and subsidies, overtime wages, wages paid under special circumstances) year-end bonuses belong to the category of bonuses, and the total wages include year-end bonuses, which refers to the labor remuneration paid to employees for excess labor remuneration to increase revenue and reduce expenditure. These include:

Production awards (including year-end bonuses), saving awards, labor competition awards, incentive wages of government agencies and institutions, and other bonuses.

Article 4 of the Provisions on the Composition of Total Wages.

Gross salary is made up of the following six components:

1) Hourly wages;

2) piece-rate wages;

c) bonuses; iv) allowances and subsidies;

5) Overtime wages;

6) Wages paid in the case of special distribution.

Article 46 of the Labor Law.

The distribution of wages shall follow the principle of distribution according to work, and equal pay for equal work shall be implemented.

The level of wages has been gradually raised on the basis of economic development. The national dust god banquet family implements macroeconomic regulation and control of the total amount of wages.

Analysis of the law of hunger: If your company's year-end bonus is included in the employee's payroll, it can be recorded along with the salary at the time specified by your company. If the payment of the year-end bonus is not included in the payroll, under normal circumstances, the relevant costs can be included in the month of payment.

Legal basis: "Labor Law of the People's Republic of China" Article 46 The distribution of wages shall follow the principle of distribution according to work, and equal pay for equal work shall be implemented. The level of wages has been gradually raised on the basis of economic development. The state exercises macroeconomic regulation and control over the total amount of wages.