How wages are taxed and how wages are taxed

Wages are taxed according to the individual income tax standard.

The formula for calculating the IIT is:

Tax payable = (income from wages and salaries - "five insurances and one housing fund" - deductions) Applicable tax rate - quick deductions.

The individual income tax threshold is 3500, and the calculation method using the excess progressive tax rate is as follows:

Tax payment = monthly taxable income * tax rate - quick deduction.

Actual salary = salary payable - four gold - tax paid.

Monthly taxable income = (payable salary - four golds) - 3500

Deduction standard: The individual income tax is calculated according to the threshold of 3,500 yuan per month.

The personal income tax rate is the ratio between the amount of personal income tax and the amount of taxable income. The personal income tax rate is set by the corresponding laws and regulations of the state and is calculated based on the individual's income. Paying individual income tax is the obligation of citizens whose income meets the payment standard.

The basic social insurance premiums (endowment insurance, medical insurance, unemployment insurance, etc.) paid by the unit for individual employees can be exempted from individual income tax if they are implemented in accordance with the scope and standards uniformly stipulated by the state. If the unit pays commercial insurance premiums for individuals, the insurance premiums shall be regarded as wages and salaries for individual income tax purposes.

If the supplementary endowment insurance, supplementary medical insurance, supplementary provident fund, etc. paid by the employer for the employee are part of the wages and salaries, they shall not be deducted from the wages and salaries of the current month when calculating the individual income tax.

The calculation formula of wage individual income tax is: tax payable = (deduction of "five insurances and one housing fund" for wage and salary income) applicable tax rate and quick deduction.

The individual income tax threshold is 3500, and the calculation method using the excess progressive tax rate is as follows:

Tax payment = monthly taxable income * tax rate - quick deduction.

Actual salary = salary payable - four gold - tax paid.

Monthly taxable income = (payable salary - four gold) - 3500 deduction standard: individual income tax is calculated according to the monthly threshold of 3500 yuan.

If a person's salary income is 5,000 yuan, he should pay personal income tax as follows: (5,000-3,500) 3%-0=45 (yuan).

Taxable income for the whole month, tax rate, quick deduction (yuan).

The monthly taxable income does not exceed 1,500 yuan 3% 0The monthly taxable income exceeds 1,500 yuan to 4,500 yuan 10% 105 The monthly taxable income exceeds 4,500 yuan to 9,000 yuan 20% 555 The monthly taxable income exceeds 9,000 yuan to 35,000 yuan 25% 1005 The monthly taxable income exceeds 35,000 yuan to 55,000 yuan 30% 2755 The monthly taxable income exceeds 55,000 yuan to 80,000 yuan 35% 5505 The monthly taxable income exceeds 80,000 yuan 45% 13,505

Legal analysis: The calculation method of individual income tax is as follows: taxable income = amount of salary income and various social insurance premiums threshold (5,000 yuan). Tax payable = Taxable income x Tax rate Quick deduction.

Article 1 of the Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Application of Individual Income Tax Deduction Fees and Tax Rates in the Fourth Quarter of 2018 stipulates that the deduction of wages and salaries actually obtained by taxpayers after October 1, 2018 (inclusive) shall be uniformly implemented at 5,000 yuan per month, and the tax payable shall be calculated in accordance with Table 1 of the individual income tax rate attached to this notice. For the income from wages and salaries actually obtained by taxpayers before September 30, 2018 (inclusive), the deduction of expenses shall be implemented in accordance with the provisions before the revision of the tax law.

Legal basis: Article 1 of the Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Application of Individual Income Tax Deduction Fees and Tax Rates in the Fourth Quarter of 2018: For the wages and salaries actually obtained by taxpayers after October 1, 2018 (inclusive), the deduction of expenses shall be uniformly implemented at 5,000 yuan per month, and the tax payable shall be calculated in accordance with Table 1 of the individual income tax rate attached to this notice.

For the income from wages and salaries actually obtained by taxpayers before September 30, 2018 (inclusive), the deduction of expenses shall be implemented in accordance with the provisions before the revision of the tax law.

Legal Analysis:1Income tax payable = taxable income * applicable tax rate - taxable income with quick deductions.

2.Taxable income = monthly income - 5,000 yuan (tax threshold) - special deductions (five insurances and one housing fund, etc.) - special additional deductions - other deductions determined according to law.

Legal basis: Article 2 of the Individual Income Tax Law of the People's Republic of China on wages and salaries shall be subject to 7 levels of excess progressive tax rate, and the tax shall be calculated and levied according to the monthly taxable income. The tax rate is divided into 7 levels according to the taxable income of individual monthly wages and salaries, with the highest level being 45% and the lowest level being 3%.

Taxable income = salary income amount - three insurances and one housing fund, individual payment part - special additional deduction - commercial insurance that can be deducted before tax - exemption amount (5,000 yuan).

Tax payable = taxable income x tax rate - quick deduction.

Income from wages and salaries shall be taxable income based on the balance of monthly income after deducting expenses of 3,500 yuan.

The basic endowment insurance premiums, basic medical insurance premiums and unemployment insurance premiums actually paid by the people of the state or province (autonomous regions and municipalities directly under the Central Government) in accordance with the payment ratio or method stipulated by the people of the state or province (autonomous region and municipality directly under the Central Government) are exempt from individual income tax; The basic endowment insurance premiums, basic medical insurance premiums and unemployment insurance premiums actually paid by individuals in accordance with the payment ratio or method stipulated by the people of the state or province (autonomous regions and municipalities directly under the Central Government) are allowed to be deducted from the taxable income of individuals. Housing provident fund within the standard range can also be exempted, the specific standard can refer to the documents issued by your province and city.

For individual income tax, the income earner is the taxpayer, and the unit or individual that pays the income is the withholding agent. That is, the unit that pays the income can declare and pay the individual income tax for you.

Progressive tax rates for excess are applied, ranging from 3% to 45% (tax rate table attached).

Individual Income Tax Rate Table 1 (Applicable to Income from Wages and Salaries).

Progression Monthly taxable income Tax rate (%)

1 Not more than 1500 yuan 3

Imitation 2 The part exceeding $1,500 to $4,500 10

3 The portion exceeding $4,500 to $9,000 20

4 The portion exceeding $9,000 to $35,000 25

5 Over $35,000 to $55,000 30

6 Over $55,000 to $80,000 35

7 Over $80,000 45

Note: The taxable income of the whole month mentioned in this table refers to the balance after deducting expenses of 3,500 yuan and additional deductions of expenses from the monthly income amount in accordance with the provisions of Article 6 of this Law. ）

Legal Analysis: |The salary range is between 1-5000 yuan, including 5000 yuan, the applicable individual income tax rate is 0%, the salary range is between 5000-8000 yuan, including 8000 yuan, the applicable individual income tax rate is 3%, the salary range is between 8000-17000 yuan, including 17000 yuan, the applicable individual income tax rate is 10%, the salary range is between 17000-30000 yuan, including 30000 yuan, and the applicable individual income tax rate is 20% The salary range is between 30,000-40,000 yuan, including 40,000 yuan, the applicable individual income tax rate is 25%, the salary range is between 40,000-60,000 yuan, including 60,000 yuan, the applicable individual income tax rate is 30%, the salary range is between 60,000-85,000 yuan, including 85,000 yuan, the applicable individual income tax rate is 35%, and the salary range is more than 85,000 yuan, the applicable individual income tax rate is 45%.

Legal basis: Article 3 of the Individual Income Tax Law of the People's Republic of China (PRC) The tax rate of individual income tax: (1) For comprehensive income, an excess progressive tax rate of 3% to 45% shall be applied.

2) For business income, an excess progressive tax rate of 5% to 35% shall be applied. (3) Income from interest, dividends and bonuses, income from lease of property, income from property transfer and incidental income shall be subject to a proportional tax rate of 20%.

The method of salary deduction is that the enterprise shall calculate and withhold and pay before issuing it to the employee, and then declare and pay it to the local local taxation bureau.

Payroll tax deduction is equal to the taxable income of the whole month * tax rate - the taxable income of the whole month of quick deductions.

The monthly salary is subject to individual income tax, which is calculated as follows:

1. Income tax payable * applicable tax rate - taxable income of quick deduction;

2. Taxable income - 5,000 yuan (tax threshold) - special deductions (three insurances and one housing fund, etc.) - special additional deductions - other deductions determined according to law;

3. The income from wages and salaries shall be subject to the 7-level excess progressive tax rate, and the tax shall be calculated and levied according to the monthly taxable income. The tax rate is divided into 7 levels according to the taxable income of individual monthly wages and salaries, with the highest level being 45% and the lowest level being 3%.

The method of taxation of wages is as follows:

Individual income tax is levied in two ways: withholding at source and self-declaration, and the unit or individual that pays the income is the withholding agent of individual income tax; If there is a withholding agent who obtains income from wages and salaries in two or more places and there is no withholding agent, as well as if there is a withholding agent, but the withholding agent does not withhold and pay the tax in accordance with the provisions of the tax law, the person with a broken tax liability shall declare and pay taxes on his own.

1. Taxes. It is a normative form in which the state participates in the distribution of social products and obtains fiscal revenue compulsorily and gratuitously in accordance with the provisions of the law in order to provide public goods to the society and meet the common needs of the society.

2. What is the standard of salary taxation?

The latest personal income tax threshold for wages in 2018 is 5,000 yuan. The individual income tax calculation formula is payable individual income tax = (salary income of the current month - three insurances and one housing fund borne by the individual - 5000) multiplied by the applicable tax rate - quick deduction attached: the new individual income tax rate table will be implemented from October 1, 2018).

Quick deduction of taxable income tax rate for the whole month (yuan): rotten.

1. The monthly tax payable shall not exceed 1,500 yuan, and the tax rate shall be 3%0;

2. The tax rate for more than 1,500 yuan to 4,500 yuan is 10% 105;

3. The tax rate of more than 4,500 yuan to 9,000 yuan is 20% 555;

4. The tax rate for more than 9,000 yuan to 35,000 yuan is 25%1005;

5. The tax rate for more than 35,000 yuan to 55,000 yuan is 30% 2755;

6. The tax rate of more than 55,000 yuan to 80,000 yuan is 35% 5555.

3. Salary. Wages refer to the remuneration paid by the employer or statutory employer to the employee in the form of money in accordance with the law, or the industry regulation, or according to the agreement with the employee. Wages can be calculated in different forms such as hourly salary, monthly salary, annual salary, etc.

To sum up, on October 1, 2018, the latest personal income tax threshold for renting wages is 5,000 yuan. The individual income tax calculation formula is payable = (salary income of the current month - three insurances and one housing fund borne by the individual - 3500) multiplied by the applicable tax rate - quick deduction attached.