How to calculate the year-end bonus tax rate?

According to the current personal income tax law, the income from wages and salaries in China's current personal income tax is subject to 7 levels of excessive progressive tax rate.

For example, after deducting social security, an employee has a monthly income of 4,000 yuan and a year-end bonus of 20,000 yuan, so there are the following three algorithms.

If the year-end bonus is taxed separately by one month's salary, the year-end bonus tax that employees need to pay is: 20000× 10% (corresponding tax rate)-105 (quick deduction) = 1895.

The income of a normal month is taxed at 4000 yuan, and the individual tax paid is: (4000-3500) × 3% = 15.

Annual tax payment:1895+15 =1910,10+15×12 = 2000.

Extended data:

According to the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Adjusting the Calculation and Collection of Individual Income Tax for Individuals Obtaining Annual One-time Bonuses, taxpayers obtain annual one-time bonuses and pay taxes separately according to one month's wages and salaries, which are withheld and remitted by withholding agents at the time of payment.

Applicable formula: tax payable = employee's one-time bonus in the current month × applicable tax rate-quick calculation deduction (if the employee's salary is less than 3,500 yuan, it needs to be calculated after the difference is made up at the end of the year).

In addition, there are not only year-end awards, but also semi-annual awards, quarterly awards, overtime awards, senior generals, attendance awards and so on. Personal income tax shall be paid in accordance with the provisions of the tax law in combination with the salary income of the current month.