+ extraordinary overtime + housing allowance + cash bonus
After this step, two different rates should be determined to pay the insurance premium. The first is the 7% insurance that the worker pays, and the second is the 23% insurance that the employer has committed to pay.
How to calculate tax
After the insurance, the accountants carefully check the tax amount of each employee.
The benefits that are subject to tax are as follows: basic salary, housing allowance, allowance, child allowance and overtime. All these are added and then multiplied by the tax rate to determine the amount of tax.
The sum of the salary and benefits of the worker that is subject to tax:
Basic salary + housing right + children’s right + extraordinary overtime.
The tax rate is extracted by accountants from the table of income taxpayers. A person may not be taxed on the sum of his benefits and may be considered tax-exempt. But otherwise, they generally calculate the tax rate as 10%. In addition, there is a table named “Income Tax Calculation Table” that changes every year.
According to the salary income tax calculation table for the year 2018, if a person’s salary is less than or equal to 2 million and 300 thousand tomans, he will be exempt from tax.
From 2 million and 300 thousand tomans and above, they have rated it according to the table you see. Naturally, for the next year, these rates should be checked according to the salary income tax calculation table of 2019.
Calculation of net salary paid
According to these formulas, now we must subtract the sum of benefits from the sum of deductions to reach the net salary paid.
Salary and its checking methods in the accounting office
Accountants have different offices that record all the financial processes that are carried out in the organization in their own offices.
The designated office is the office in which petty salaries are entered. Therefore, if you can analyze a certain office, you can easily check the amount of salaries and wages of the institution.
This ledger has two sides: the debtor side and the creditor side.
On the debtor’s side, the following items are entered:
Salary costs / employer insurance costs
In fact, the debit part is the part that shows what amounts the institution has set aside for spending. One of those costs is the net payment to employees, and the other cost is the 23% tax, of which 7% is paid by the worker, and now the organization is required to pay the remaining 23%.
On the creditor’s side, they enter the following items:
Payable insurance (employer’s insurance and employer’s insurance) / payable tax / salaries and benefits
When we talk about the word payable in accounting, it means an amount that has the nature of being a debtor. That is, the institution owes these amounts to its accounts and must pay them in the future, and that is why it is called payable.
When you take a look at the two sides of a given office, you will have a good idea of how much money the company has to pay employees, how much it deducts from them for taxes and insurance, and finally, how much money it has to pay as insurance. Give insurance to the department, which includes both worker insurance (7 percent) and employer insurance (23 percent).