Base and coefficient of year-end bonus

In a blink of an eye, the end of the year has arrived, and the year-end award has become one of the hot spots that people pay attention to. On the surface, the year-end bonus seems to be an extra reward for employees by employers. In fact, it is a bonus with the nature of labor remuneration and an integral part of wages. However, the year-end bonus is not the labor remuneration enjoyed by workers according to law, nor is it a legal obligation that employers should bear. This special attribute of the year-end award makes it controversial in almost every link, such as how to standardize the setting and how to assess the distribution. Labor law experts and lawyers answer questions for employees.

What are the types of year-end awards?

Xu Yonggang, the driver of Bus No.55 Company, asked: The year-end bonus is usually a reward for employees for one year, but it is also an integral part of employees' salary. So, what types of year-end awards are made up of?

Pan Lina: Whether the year-end bonus should be decided, how to decide and how to pay it is not mandatory by law, and it belongs to the autonomy of enterprise employment management, which is decided by the employer.

The year-end awards mainly include the following types:

1, performance appraisal type

This payment method is characterized by strict payment according to the agreement of both parties or the rules and regulations of the unit and the results of performance appraisal. If the employer and the employee clearly agree that the employee enjoys the "year-end bonus" in the form of a labor contract, but both parties also clearly agree that the existence and specific amount of the "year-end bonus" are determined by factors such as company performance, sales tasks, personal performance and assessment results, then this "year-end bonus" can be regarded as the employee's "performance salary". Of course, some companies will also comprehensively consider the company's overall operating performance and the post level of employees, but the individual performance appraisal results of employees are very important in the assessment.

For employees, this type of benefit is more work and more pay, which is relatively fair. The disadvantage is that this kind of year-end bonus belongs to risk income after all, and the assessed needs to "depend on the weather" and the income is not very stable.

2. Salary combination type

For example, in labor contracts, wage confirmation forms and other forms, the employer and the employee clearly agreed that the employee's "labor remuneration" includes a specific amount of "year-end bonus", and the two sides did not make a special agreement on the payment conditions of the "year-end bonus". Then, this "year-end award" can be regarded as an integral part of the wages of workers.

For employees, the advantage of this type is that they are not afraid of corporate default, and employees should get their share of the bonus before they leave their jobs. However, at present, there are few year-end awards or "thirteen salaries", and most enterprises will have certain restrictions.

3, on-the-job incentive type

According to the agreement between the two parties or the rules and regulations of the unit and the employee handbook, employees who leave their jobs for whatever reason will not enjoy the year-end bonus of that year as long as they are not in their posts at the time of payment, so as to motivate the on-the-job employees. Compared with the performance appraisal system, the on-the-job incentive system embodies the enterprise's intention to retain talents.

For employees, the advantage of implementing this model is that they don't have to pass the performance appraisal. The disadvantage is that the enterprise can cancel the bonus if the employee leaves before the bonus is paid or there are other provisions.

4. Types of material rewards

If the employer does not explicitly agree on the "year-end bonus" with the workers, then the one-time bonus such as money issued by the employer to all employees or some employees can be regarded as the "material reward" year-end bonus. This kind of year-end bonus has the nature of national welfare, which reflects the autonomy of enterprises. There is a year-end bonus of "material reward", and the specific bonus form, reward standard and payment method can be decided by the enterprise independently.

For employees, the advantage of this type is that, in principle, employees who leave or join in the middle of the year should also get a certain share of the year-end bonus. The disadvantage is that the distribution scheme of some enterprises is not transparent, and it is difficult for employees to claim their legitimate rights and interests.

What are the principles for awarding year-end awards?

Mr. Zhou, a water company, asked: No matter how much you get, the year-end bonus is something to be happy about, but is there any principle for its distribution?

Pan Lina: The year-end bonus is issued on the condition that the enterprise can increase revenue and reduce expenditure, and the workers pay excessive labor. After comprehensive consideration of specific types, there are three principles.

1, allocated according to the contract

In other words, if the employer and employees have an agreement on the standards and conditions for the issuance of year-end awards, it will be handled according to the agreement.

2. Negotiation and distribution

If there is no clear agreement between the employer and the employee on the payment standard and conditions of the year-end bonus, the two parties can determine it through consultation.

3. The principle of equal pay for equal work.

The employer and the employee have not made any agreement on the standards and conditions of the year-end bonus. If no agreement can be reached through negotiation, the bonus will be paid according to the principle of equal pay for equal work. In the specific calculation, you can refer to the calculation method of the year-end bonus issued by the enterprise to other or resigned employees of the same job, position, level and performance level.

What are the ways to distribute year-end awards?

Reader Liu Hao asked: I feel that employees don't know much about whether enterprises will issue year-end bonuses. Are there any specific conditions and methods for its distribution?

Pan Lina: At present, the employer has the right to decide the conditions and methods for awarding the year-end bonus, but generally speaking, there are such conditions and methods.

1. Pay by multiple of monthly salary.

The base and coefficient are involved in calculating the year-end bonus according to the monthly salary multiple. The calculation formula is: year-end award standard = payment base × coefficient.

2. Reissue the agreed annual salary difference

Enterprises adopt the measure of annual salary difference when introducing talents. For example, an enterprise and the newly hired department manager agree that the annual income is 6.5438+0.2 million yuan, and the usual monthly salary is 6,000 yuan/month before tax, and the remaining 48,000 annual salary difference is paid as the year-end bonus.

3. Sales staff bonus commission settlement

Generally speaking, the year-end bonus of sales staff needs to be settled centrally at the end of the year according to various assessment schemes signed at the beginning of the year.

The calculation formula is: commission = base × commission ratio.

Distribute red envelopes

Some companies have not formulated a relatively standardized standard for issuing year-end awards. The year-end bonus is a red envelope issued directly by the boss or the person in charge of the authorized department. The amount of bonus generally depends on the post level of the employee.

5. Equity dividend

The year-end bonus of listed companies and unlisted joint-stock companies also includes equity dividends. The biggest difference between dividends and red envelopes is that dividends have distribution rules in advance and can be calculated clearly.

The calculation formula of equity dividend is: total dividend = dividend per share × total number of shares.

Individual dividend = dividend amount per share × number of corresponding shares ×( 1- tax rate)

6. No year-end bonus

Some companies don't have year-end awards; Some companies didn't issue year-end bonuses that year because of poor efficiency. In some extreme cases, such as serious safety accidents, quality accidents, violations, etc. , employees or subsidiaries may also be disqualified from issuing year-end bonuses that year. However, this practice is likely to cause employees' dissatisfaction, which requires the company's leadership to carefully consider whether to choose.

In addition, there are personalized year-end bonus distribution methods for pieceworkers and technical engineers, so I won't go into details here.

Can employees get the year-end bonus when they leave?

Reader Wang Yongli asked: I'm leaving my job recently, but the year-end bonus won't be distributed until next year 1 month. Excuse me, do I have the right to get this year's year-end bonus?

Pan Lina: The end of the year and the beginning of the year are often the peak of employees' resignation. Some enterprises that have established the year-end bonus system often stipulate that employees who leave the company do not enjoy the year-end bonus. However, there are risks in this practice, which need to be analyzed and judged in combination with the specific types of year-end awards:

A. The salary combination year-end bonus is an integral part of the employee's due salary, which is usually stipulated in the enterprise's rules and regulations, or agreed in the labor contract, or specified in the employment notice issued by the enterprise to the employee. Therefore, in this case, employees who quit halfway have the right to claim the year-end bonus of that year. Those who have been on the job for less than one year have the right to request conversion according to the actual on-the-job time of the year.

B. The year-end bonus for performance appraisal is a conditional bonus. Whether or not to pay and the amount to pay depend on the agreement on the payment conditions in advance or the provisions of enterprise rules and regulations, as long as the agreement or provisions do not violate the mandatory provisions of national laws and regulations in terms of content and formulation procedures. Therefore, in this case, employees who quit halfway have the right to claim the corresponding amount of year-end bonus from the enterprise if they meet the agreed or stipulated conditions for issuing year-end bonuses; If not, of course there is no right to ask.

In addition, according to the relevant provisions of the Civil Code on conditional civil juristic acts, if an enterprise terminates the employee's labor contract in advance for the purpose of preventing the payment of the year-end bonus, once it is found illegal by the labor arbitration institution and the court, the employee who leaves the company halfway still has the right to ask the enterprise to pay the year-end bonus according to the principle of "equal pay for equal work".

Do employees get a year-end bonus for absenteeism?

Wang Guoqin, the cleaner of the property company, asked: I took a few sick days this year because of illness. Is there a year-end bonus?

Pan Lina: Enterprises have the right to decide whether and how to issue year-end bonuses, including but not limited to objectives and accounting conditions. In practice, most enterprises that implement the year-end bonus system regard employee attendance as one of the payment or accounting conditions of the year-end bonus, but enterprises must not violate the mandatory provisions of the law. Generally speaking:

A, employees' absenteeism, lateness, leaving early and other attendance violations, as well as sick leave and personal leave, are not improper as the conditions for not issuing the year-end bonus or the accounting conditions for the year-end bonus.

B. Whether employees refuse to work overtime can be used as a condition for not issuing the year-end bonus or accounting for the year-end bonus, and the specific issues are analyzed in detail. Article 4 1 and Article 42 of the Labor Law stipulate two different types of overtime work, the former must be agreed by both parties through consultation, and the latter is based on the need for employees to work overtime for emergency rescue and emergency repair of public facilities, and employees shall not refuse. Therefore, for the latter, if employees refuse to work overtime, enterprises can use it as a condition for not issuing year-end bonuses or as an accounting condition for year-end bonuses.

C. Holidays that should be treated as normal attendance according to law, such as maternity leave, statutory holidays, annual leave, funeral leave, etc. Enterprises cannot refuse to issue or subtract year-end bonuses on the grounds that employees enjoy holidays.

Can shopping vouchers be used as year-end awards?

Mr. Chen, the tailor of the clothing company, asked: Due to the poor economic benefits of the company this year, I heard that shopping vouchers will be issued at the end of the year. Is this ok?

Pan Lina: The legal nature of the year-end bonus is salary. According to "Labor Law" and "Interim Provisions on Wage Payment", enterprises should pay wages in the form of money, and it is not allowed to pay wages in kind or negotiable securities instead of money. If the enterprise uses shopping cards, fuel cards, etc. to give employees year-end awards. This is obviously against the regulations.

In addition, as a way or measure to motivate employees, year-end bonus is not the only choice. Enterprises can determine different incentive measures according to the actual situation, such as tourism, in-kind rewards, training and upgrading.

How to realize reasonable tax avoidance in year-end awards?

Enterprise executive "Adego" asked: Since I got a large year-end bonus, is there any reasonable tax avoidance method?

Pan Lina: As early as the end of 20 18, the Ministry of Finance and State Taxation Administration of The People's Republic of China issued the Notice on the Connection of Preferential Policies after the Revision of the Individual Income Tax Law. This notice provides a transitional solution, that is, within three years (20 1 91kloc-0/0/to 2021February 3 1), two tax methods are provided: separate tax calculation and consolidated tax calculation. In short, separate taxation applies to employees whose salary is higher than the year-end bonus, and combined taxation only applies to employees with more year-end bonuses. Now that three years are coming, starting from June 5438+1 October1in 2022, individual residents will receive a one-time bonus for the whole year, which should be incorporated into the comprehensive income of that year to calculate and pay personal income tax. In other words, there are two ways to tax the year-end bonus won this year, namely, taxation and consolidated taxation. By next year's income, there is only one way to pay taxes together, which means that the personal income tax burden of some people may increase.

Generally speaking, enterprises are used to issuing year-end awards before the Spring Festival, that is, before February 1 2022. In order to make employees pay less year-end bonus tax, enterprises with year-end bonus plans should obviously pay them before the end of this year, so that employees can enjoy the preferential policies of year-end bonus.

How to give full play to the incentive function of year-end awards?

Zhou Debao, the business operator, asked: The year-end bonus is the embodiment of enterprise autonomy. However, employees are often dissatisfied after the enterprise issues it. Is there any way to reflect the good intentions of enterprises?

Pan Lina: The year-end bonus is an important magic weapon for enterprises to stimulate employees' enthusiasm, enhance employees' loyalty and enhance enterprise cohesion. However, in order to play its role, enterprises should pay attention to the following points to avoid unnecessary labor disputes caused by year-end awards and establish more harmonious and stable labor relations.

First, clarify the salary attributes. Year-end bonus is salary in legal nature, but from the perspective of enterprise management, year-end bonus and enterprise welfare may be very different. If the enterprise only uses or mainly uses the performance appraisal results as the condition for issuing the year-end bonus, in practice, the year-end bonus can easily be recognized as labor remuneration. Even if employees have left their jobs, there is obvious legal risk of being judged to pay year-end bonus in proportion to working hours. On the other hand, the definition, nature, distribution, enjoyment methods and processes of year-end bonus and other bonus benefits are clearly and meticulously stipulated in enterprise rules and regulations. Comprehensive performance, attendance, violation of discipline, customer satisfaction and peer evaluation can generally identify the welfare nature of the year-end bonus, and the above legal risks are less likely to occur.

Secondly, highlight the incentive mechanism. In the employee's individual labor contract or collective labor contract, the object, time, standard, business performance and personal performance conditions of the year-end award are clearly stipulated to improve predictability. Rewarding or motivating outstanding employees should be the starting point for enterprises to set up year-end awards. Therefore, around this management purpose, combined with the specific situation of the enterprise, the qualification conditions or distribution target conditions for enjoying the year-end award are set, commonly known as "finalist conditions". In short, how to determine the goal of the year-end award is analyzed by the enterprise according to the objective situation and specific problems.

Finally, focus on solidifying evidence. In the design of enterprise specific system, we should pay attention to fairness and rationality while adhering to legal compliance; At the same time, because these matters are directly related to the vital interests of employees, enterprises should also pay attention to democratic procedures and publicity procedures in strict accordance with the provisions of Article 4 of the Labor Contract Law. Special attention should be paid to the establishment and improvement of employee performance management system, so as to operate in strict accordance with the cycle of performance target setting, regular assessment, result feedback and appeal, adjustment and improvement, and pay attention to the solidification and retention of relevant evidence in the operation process, so as not to bear the adverse consequences of failure to provide evidence in labor disputes.

(According to "Labor News" Zhao Ruan Gong Junyi) Yao Yimeng