Fast Advices

Calculation of salary tax and social and health contributions for two employments

Case for clarification

In case we have a monthly salary of 85,000 ALL from one project and a salary of 300 euros from the other project.

How much should the employee receive?

Answer

For the income from the salary in the amount of 85,000 ALL that the employer pays as gross salary, the salary tax is calculated and withheld in the amount of 7,150 ALL per month (85,000 -30,000) * 13%. But, in the meantime, 9,520 ALL / month is calculated and kept on account of insurance. The net salary that remains to be withdrawn from the employee is 68,330 ALL / month.

Meanwhile, for the income from the salary in the amount of 36,900 ALL (300 Euro) that the other employer pays as gross salary, you will calculate for the employees 897 ALL for income tax from the salary / month (36.900-30.000) * 13% and, the contributions of social and health insurance in the amount of 4132.8 ALL / month. The net salary that will be obtained from this employment relationship is 31,870.2 ALL / month.

Each employer keeps and pays them on behalf of the respective CSOs. Despite the fact that insurance is calculated by one person, in fact it is calculated in the case of employment with another

For the status of the two employments, based in employment contracts, the employee must, by April 30, 2021, complete and submit the annual personal income declaration in which the monthly income from the salary will be calculated as the total income from the salary from all sources of employment of the individual.

In this case, the income from the gross monthly salary of the individual is a total of 121,900 ALL (1,462,800 ALL / year).

The personal income tax is calculated to be 11,947 ALL per month (121,900 -30,000) * 13% or 143,364 ALL per year (12 months x 11,947 ALL).

Meanwhile, the income tax from the salary that has been paid for one year is 96,564 ALL (85,800 ALL + 10,764 ALL). At the moment of the annual declaration, the individual income arises the obligation to pay the rest of the personal income tax from the salary, which is 46,800 ALL (143,364-96,564) for the tax period of the declaration.

In this case, the net salary on an annual basis is reduced by 46,800 ALL in total for the two employments, or 3,900 ALL per month.