What is pre-tax salary? What is after tax?

Pre-tax wages are wages payable in the current month, including wages, meal tickets, tickets, room tickets, bonuses, etc. After-tax salary is the money actually obtained after deducting personal income tax, personal contributions in social insurance and personal contributions in housing provident fund from pre-tax salary. Also known as real wages.

Calculation formula of pre-tax and after-tax wages of labor contracts:

There is no special explanation in the labor contract. By default, it represents pre-tax salary. After the laborer needs to pay personal income tax and social insurance, the actual salary is after-tax salary. The calculation method of after-tax salary is mainly based on the provisions of the new tax law, and the salary is seven grades progressive. At present, the threshold is still 5000 yuan.

The specific calculation method of after-tax salary is as follows: the calculation details of after-tax salary are equal to (pre-tax income-5,000 yuan (starting point)-special deduction (three insurances and one gold). )-special additional deduction-other deductions determined according to law) multiplied by the applicable tax rate-quick deduction, where the tax rate is:

1, monthly taxable income does not exceed 3,000 yuan: tax rate: 3%= quick deduction (yuan): 02, monthly taxable income exceeds 3,000 yuan to12,000 yuan: tax rate: 10%= quick deduction (yuan): 2/kloc- Monthly taxable income exceeds 12000 yuan to 25000 yuan: tax rate: 20%= quick deduction (yuan): 14 104, monthly taxable income exceeds 25000 yuan to 35000 yuan: tax rate: 25%= quick deduction (yuan). Monthly taxable income exceeds 35,000 yuan to 55,000 yuan: tax rate: 30%= quick deduction (yuan): 44 106, monthly taxable income exceeds 55,000 yuan to 80,000 yuan: tax rate: 35%= quick deduction (yuan): 7 1607, full month.

Take-home pay refers to the sum of all wages payable without deducting social security, housing provident fund and personal income tax = take-home pay refers to the wages actually paid, that is, deducting taxes, social security fees, provident fund and other expenses.

As social insurance premiums, taxes and other deductions withheld and remitted by the employer are all components of personal labor income, the employer only undertakes the obligation of withholding and remitting. So the deduction is actually the employee's salary, and this part of the money should be included in the salary income. When calculating economic compensation, the salary without deducting social security expenses before tax should be taken as the calculation base.

Legal basis:

Article 2 of the Individual Income Tax Law imposes individual income tax on the following personal income:

(1) Income from wages and salaries;

(2) Income from remuneration for labor services;

(3) Income from remuneration;

(4) Income from royalties;

(5) Operating income;

(6) Income from interest, dividends and bonuses;

(7) Income from property lease;

(8) Income from property transfer;

(9) Accidental income.

Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.