Do you need to pay overall insurance for the year-end bonus?

Do you need to pay overall insurance for the year-end bonus?

Annual one-time bonus refers to the one-time bonus paid to employees by withholding agents such as administrative organs, enterprises and institutions according to their annual economic benefits and comprehensive assessment of employees' annual work performance, including year-end salary increase and annual salary system, and annual salary and performance salary cashed by performance-based pay units according to the assessment. Below, I have sorted out the relevant contents about whether to pay the overall insurance for the year-end bonus, hoping to help you!

First, is it necessary to pay social security for the year-end bonus?

There is no need to pay social security for the year-end bonus, but personal income tax is required for the year-end bonus exceeding a certain amount.

According to the Notice on Adjusting the Method of Individual Income Tax for Individuals Obtaining Annual One-time Bonuses, Article 2 Taxpayers who obtain annual one-time bonuses shall be taxed separately as one month's salary and salary income, which shall be withheld and remitted by withholding agents according to the following taxation methods:

(1) Divide the annual one-time bonus obtained by employees in the current month by 12 months, and determine the applicable tax rate and quick deduction according to their quotient. If, in the month when the year-end one-time bonus is issued, the employee's wage income in that month is lower than the expense deduction stipulated in the tax law, the applicable tax rate and quick deduction of the annual one-time bonus shall be determined according to the above method.

(2) The annual one-time bonus obtained by individual employees in the current month shall be taxed according to the applicable tax rate and quick deduction determined in Item (1) of this article, and the calculation formula is as follows:

1. If the employee's salary income in the current month is higher than (or equal to) the expense deduction stipulated in the tax law, the applicable formula is: tax payable = employee's one-time bonus in the current month × applicable tax rate-quick deduction.

2. If the employee's salary income in the current month is lower than the expense deduction stipulated in the tax law, the applicable formula is: tax payable = (employee gets a one-time bonus in the current month-the difference between employee's salary income and expense deduction in the current month) × applicable tax rate-quick deduction.

Second, do you want to pay social security extension materials for the year-end award?

Annual one-time bonus refers to the one-time bonus paid to employees by withholding agents such as administrative organs, enterprises and institutions according to their annual economic benefits and comprehensive assessment of employees' annual work performance, including year-end salary increase and annual salary system, and annual salary and performance salary cashed by performance-based pay units according to the assessment.

With the deepening of reform, great changes have taken place in the salary distribution of enterprises. The proportion of employees' fixed wages in income is getting smaller and smaller, while the proportion of incentive wages in income is getting bigger and bigger, and this trend is still developing.

According to the provisions of the Labor Law, the total wages refer to the total labor remuneration paid directly by each unit to its employees within a certain period of time, which consists of hourly wages, piece-rate wages, allowances and subsidies, overtime wages, wages paid under special circumstances and other parts.

Third, do you need to pay social security for the year-end award?

You don't have to pay social security for the year-end bonus. Social security will adjust the base in April every year, and enterprises will follow up in May-June. The salary base of the current year quoted by the company shall be paid monthly.

Fourth, the year-end award needs to pay corporate social security.

Social security contributions are determined by the unit for employees according to their own welfare status, and have nothing to do with changes in employees' wages. As long as the unit payment remains unchanged, your monthly social security payment will remain unchanged.

5. Why should the company pay social security for the year-end award?

No, social security and provident fund are deducted from wages and have nothing to do with the year-end bonus. Moreover, social security and provident fund are deducted from wages every month, and the year-end bonus is only available at the end of the year.

The year-end bonus refers to the uncapped reward given to employees by enterprises at the end of each year, which is an affirmation of the work performance in the past year.

The amount and form of the year-end bonus are generally adjusted by the enterprise according to the situation. A good year-end bonus method should have a good assessment index, assessment method, distribution rules and other corresponding systems, which can effectively motivate employees and increase enterprise cohesion.

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