What is a quarterly bonus?

Quarterly bonuses are bonuses paid quarterly, with three months being a quarter. Because performance wages and bonuses are often closely related to performance, when a company settles its business on a quarterly basis, performance wages or bonuses are also paid quarterly.

Quarterly bonuses are suitable for longer-term jobs, such as a project that requires more than a year. In order to retain and motivate talents, quarterly bonuses are more appropriate, both for the company and for individuals. Generally speaking, all expectations have been met. Extended information

Individual income tax on bonuses

The employed unit issues "bonuses" related to employment to employees, which are an integral part of personal wages and salaries and should be treated as "wages and salaries" Personal income tax is levied on taxable items of income. According to policy regulations, different forms of bonuses have different tax calculation methods and generate different tax burdens. Policy Differences: According to current policy provisions, the personal income tax calculation methods for different types of "bonuses" obtained by individuals are different.

1. The monthly bonus paid with the salary (commonly referred to as the "basic bonus") is an important part of the employee's salary, and personal income tax is levied on a monthly basis.

2. For one-time bonuses issued over several months (referred to as "multi-month bonuses"), the individual income tax shall be calculated separately as the tax base in the month of payment. However, the way in which this provision applies to domestic personnel and foreign personnel is different. The Chinese personnel receive a one-time bonus (for example, 800 yuan).

If the salary of the current month (assumed to be 1,000 yuan) is less than the fee deduction standard (for example, the deduction standard in Fujian Province is 1,100 yuan), the difference (1,000-1,100=-100) can be obtained in one lump sum After the bonus is made up first, the remaining part (800-100=700) will be calculated separately for personal income tax.

The one-time multi-month bonus received by foreigners does not take into account whether their monthly salary meets the tax standard. Those who do not meet the standard will not enjoy the discount of making up the difference, and the tax will be directly calculated based on the one-time bonus. Personal income tax.

3. The year-end 13th month incentive salary (referred to as the "double salary system bonus") obtained by employees of agencies, groups, enterprises and institutions that implement the "double salary system" is actually the unit's year-end employee assessment The reward given later is purely a concept of year-end bonus, and the calculation method of personal income tax is the same as the tax calculation method of the one-time bonus mentioned above.

4. The annual operating bonus income (referred to as "annual salary bonus") obtained by business operators who implement the annual salary system after the year-end assessment should be combined with the monthly salary in advance, and then calculated based on the 12 months of the year. Personal income tax is calculated on a monthly basis after averaging.

5. Physical rewards such as houses and vehicles (referred to as "physical bonuses") given by agencies, enterprises and institutions, especially schools when recruiting talents, are an important part of their wages and salaries. When determining personal income tax When calculating the base, the amount of the in-kind reward is allowed to be evenly divided into monthly income based on the service years promised by the external employee (but if it is more than 5 years, it will be calculated as 5 years) and then incorporated into the salary to calculate personal income tax.

6. For stock subscription warrants given by companies or institutions when recruiting talents, the difference between the actual value of the stock and the actual value of the stock after the individual subscribes for the stock is actually given to the individual by the employer. Material rewards (referred to as "equity bonuses").

It is an important part of their wages and salaries and should be included in the calculation of personal income tax. However, because these incomes are generally too valuable, the policy allows this part of the difference to be income when calculating specific taxes. Personal income tax is calculated by averaging wages and salaries over a period of no more than 6 months.

Reference: Baidu Encyclopedia: Bonus