In this way, we help enterprises to save taxes: part of employees' salary or salary increase is converted into employee welfare fund, which effectively reduces employees' tax and enterprise costs.

For example, the employee salary of a company 1 000 yuan becomes a welfare payment effect.

Suppose the company raises its employees by 1 000 yuan, and both enterprises and individuals have to bear the extra expenses of five insurances and one gold, so that not only the enterprises actually spend more, but also the employees don't get 1 000 yuan. However, if this 1000 yuan is converted into welfare funds and distributed through welfare Pl us, enterprises will not only bear additional costs, but also reduce the tax base of employees, and this 1000 yuan welfare can be used for consumption.

Then why is it 1000 yuan instead of 5000 yuan? 10000? This is based on:

According to the "Regulations on the Implementation of Enterprise Income Tax Law of People's Republic of China (PRC)", employees' welfare expenses incurred by enterprises that do not exceed 14% of total wages and salaries are allowed to be deducted. Bian Xiao, the US platform of Welfare pl, suggests that the employee welfare expenses mentioned here can only be the actual expenses, and the expenses that have not occurred can not be accrued, otherwise they cannot be deducted before tax.