Research On Income Tax Planning In The Design Of A Company's Compensation System

With the rapid development of the national economy and the arrival of the era of population aging,labor prices are increasing year by year,and thus China has bid farewell to the era of cheap labor.Due to this increase,the labor costs have become a very important part of the operating costs for enterprises.This forces the enterprises to pay more attention to human resource management,in which the salary design of employees is the most important part.The key of the salary design is to improve the employees' satisfaction about their payments without increasing the cost of the enterprises.By introducing tax planning ideas into the salary design,the tax of the personal income can be decreased,which means the increase of the personal income after the tax.This will increase the employees' satisfaction,and thus improve the employment relationship effectively.In addition,if we can pay more attention to the collaborative planning of the corporate income tax and personal income tax during the salary design,the burden of the enterprise income tax can also be reduced,which indicates the decreasing of the operating costs of enterprises.Therefore,a perfect salary design will benefit for both employees and enterprises.By using the research methods of literature,case analysis,comparative analysis,etc,this paper tries to investigate the effects of the tax planning in the salary design based on the personal income tax law,enterprise income tax law about the employee compensation of the pre income tax deduction,and other relevant provisions and laws.Taking A company as a case,we will introduce its existing salary system and salary distribution in 2015,analyze the detailed data,and point out the problems existing in the salary system and salary distribution of A company.Based on these results,we will demonstrate the feasibility and the importance of the employees' salary tax design in the company's operations by comparing the tax planning of the different salary payment method,payment time,and payment proportion.Although this research takes the income tax planning in the salary design of pharmaceutical companies as examples,it's the common problem for most of the companies.Thus,this research has a certain degree of reference for other enterprises.