Have you noticed that there are more than one tax deduction method for the year-end bonus? Let's talk about the tax payment method for the year-end bonus in 2019 and let's choose the tax payment method for the year-end bonus. This is directly related to many people's year-end bonus, so how to calculate the year-end bonus?
Year end bonus tax
At present, there are two methods to calculate the year-end bonus tax deduction. One is the old method. Before December 31, 2021, the preferential policy of average to monthly and separate tax calculation can be used. The other is incorporated into the comprehensive income of the current year. In the first way, because of the new tax rate, the tax burden of some groups will be significantly reduced.
For example, Xiao Li's monthly salary of 80002019 is 20000 yuan. According to the calculation of individual income tax, the average annual bonus of each month is 20000 / 12 = 1666.7 yuan; the former applicable tax rate is 10%, the quick calculation deduction is 105, and the year-end bonus tax should be 20000 * 10% - 105 = 1895 yuan; now the applicable tax rate is 3%, the quick calculation deduction is 0, and the year-end bonus tax should be 20000 * 3% - 0 = 600 yuan. It's 30% off compared with before.
Huang Weidong, director of the personal income tax department of Jiangsu provincial taxation bureau of the State Administration of Taxation: 'I want to remind you that everyone's situation is different. Some people, on average, don't have to cut taxes in the old way. It depends on personal choice. You can choose to pay in a single month, or you can choose to average to a month. '
For some low and middle-income people, if the special additional deduction is more, the second way is more cost-effective. For example, Xiao Wang deducts three insurances and one fund, and his monthly income is 5000 yuan, so he does not need to pay taxes. Assuming that he enjoys housing loan and special deduction of 3000 yuan for supporting the elderly every month, there will be 36000 yuan deduction in one year.
As long as his year-end bonus is within 36000 yuan and incorporated into the comprehensive income of the year, it will be offset against the special additional deduction and no tax is required. On the contrary, if he chooses to average to months, he needs to pay 1080 yuan of personal tax. Therefore, the tax authorities suggest that taxpayers should choose their own way of tax calculation according to the specific situation, and at the same time, the withholding units should pay attention to the payment of bonus so that taxpayers can enjoy the tax reduction bonus.
Before each partner pays taxes for the year-end bonus, please remember to choose the correct tax method. The professionals also said that the best tax method for the year-end bonus is to choose according to the situation. Choosing the right tax method for the year-end bonus can save a lot of money.