Revealed: How to calculate individual income tax on year-end bonuses in 2011

It's the end of the year, and the 2011 year-end bonus is the issue that everyone is most concerned about. Do you know how the income tax on year-end bonuses in 2011 is calculated? The editor will share with you the method of calculating personal income tax for year-end bonus!

Revealed: How to calculate individual income tax on year-end bonuses in 2011

1. Regarding the time when year-end bonus expenses should be credited to accounts.

If your company's year-end bonus is included on the employees' payroll, it can be recorded along with the salary according to the time specified by your company. If the year-end bonus is not included in the payroll, generally speaking, the relevant costs can be included in the month of payment.

2. Regarding the tax calculation of year-end bonuses.

According to tax laws:

——Taxpayers who receive a lump sum bonus for the year shall calculate the tax separately as monthly wages and salaries and pay the tax according to the following tax calculation method, which shall be withheld and paid by the withholding agent upon issuance:

(1) First, divide the annual lump sum bonus received by the employee in the current month by 12 months, and determine the applicable tax rate and quick deduction amount based on the quotient. If the employee's monthly salary income is lower than the expense deduction amount prescribed by the tax law in the month when the year-end lump-sum bonus is paid, the balance after deducting "the difference between the employee's monthly salary income and the expense deduction amount" should be determined according to the above method to determine the applicable tax rate and quick deduction amount of the lump-sum bonus.